The risk of burglary is escalating every year in the UK, thus purchasing contents insurance has become an essential requirement of home ownership. Here is the lowdown on cheap contents insurance including the concept of contents insurance, the factors that influence it, items that are covered and the guidelines for buying cheap contents insurance.
The Basics
Contents insurance is purchased in case of deliberate or accidental damage or theft of moveable possessions of your home such as furniture, electrical devices and jewelry.
The Factors
Four important factors influence the premium cost of contents insurance:
- Level of security The level and kind of security system that you have in your home and for its contents are a major factor. If you have left your home at the mercy of fate and do not have basic safety devices such as locks and alarms, it is likely that your insurer will charge you a higher premium.
- No claims If you have a high claims record, your premium price will be higher.
- Location Living in a high security area is a necessity as such neighborhoods are safe and secure. The chances of burglary and destruction to your home are minimal in these areas and the contents insurance premium will be lower.
- Value The actual value of your belongings inside your home is one of the major factors of an insurance policy.
Items Covered
Many essential items are covered by the policy, but other items that are not normally covered can also be included if you specify them in the policy.
- Large appliances (washing machines, dryers, radiators, stove, ovens).
- Counter top appliances (food processors, microwaves).
- Audio/Visual equipment (DVD player, stereo, CDs and DVDs, laptop and PC).
- Home furnishings (carpets, sofas, dining table, beds).
- Personal items (clothes, bicycles, prams, watches, cell phones, sports equipment).
- Garden and potted plants (exotic or ordinary).
- Contents of purse (money, credit card, keys).
- Refrigerator and freezer contents.
- Precious items (jewelry, antiques, paintings).
Note : Read your policy thoroughly to find out which items are covered and which are not.
Tips for Buying Cheap Contents Insurance.
Protect Your Home
You must install safety devices such as smoke alarm, locks, kitchen fire extinguisher and burglar alarm. Locks should be fitted for all the windows and doors of your home. This will help you lower your insurance premium, with some insurers giving 15% off.
Avoid Monthly Payments
If you can afford it, you should pay for your content insurance in one go rather than opting for monthly installments. Monthly premium payments have an average interest rate of 25% so one payment will save a lot of money.
Pay Higher Deductible
The deductible is the amount of money you pay before you make a claim. Therefore, if you shell out a large sum of money for a contents deductible, your contents premium will automatically decrease.
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