Contents Insurance Explained
Home insurance is there to cover you for unexpected and unforeseen circumstances. When we talk about home insurance, we’re not just talking about the house itself - we’re also concerned with the items inside that make it a home, if you choose to insure them.
Contents insurance covers the items in your home as distinct from the actual building itself. With Allianz you can choose:
- a combined policy with buildings and contents cover;
- buildings only cover; or
- contents only cover.
This blog post explains the ins and outs of contents insurance by answering some common questions we get in relation to this topic.
Contents insurance from Allianz will cover you primarily for damage to the contents of your home by a number of events including Fire, resultant damage from an Escape of Water, Theft and Accidental damage.*
All insurance policies exclude gradual deterioration, mechanical breakdown or general wear & tear.
*Policy conditions and exclusions will apply. Refer to our Household Policy Document for full details.
What are classed as contents?
Contents are defined as household goods and personal effects belonging to you.*
As a basic guide Contents include:
- Household goods
- Furniture and furnishings
- Personal effects (please see explanation below)
- Money up to €650
Contents do not include:
- Property that is already insured
- Motor vehicles or any motor propelled vehicle
- Passports, drivers licences etc.
*For the full definition of contents please refer to our Household Policy document.
What are personal effects?
Personal effects are articles normally worn or carried by you e.g. wallets, handbags, mobile phones, jewellery, hearing aids etc.
How much should I be insuring my contents for?
Your contents should be based on the cost of replacing the contents ‘as new’ at today's prices, and should include everything that you would take with you if you moved house. The Sum Insured (a maximum amount that an insurance company will pay to someone who makes a claim) should also include all items within the garden and outbuildings.
All Risks cover (explained below) must be selected if cover is needed for personal items that you normally take with you when outside of the home.
You should also keep in mind that in the event of a claim you will be required to pay a policy excess.
What is a Policy excess?
Like all insurance, contents insurance has a policy excess in the event of a claim. An excess is the amount of money that you are responsible for paying when making a claim. This amount is taken from the total claim settlement amount.
What is “All Risks” cover?
All Risks cover is an optional extra under your policy which protects you against loss or theft of, or accidental damage to, personal valuables such as jewellery, photographic equipment etc. both inside and outside your home. It also covers you for items you take abroad for up to 60 days per policy year.
There are two types of All Risks cover:
- Specified All Risks Cover: which allows you to list individual items on your policy, and specify their individual value. Specified items normally include jewellery, hearing aids, bicycles, cameras and other valuables. Each item is covered up to the amount you insure it for.
- Unspecified All Risks Cover: is an umbrella style cover which allows you to select a total amount that your personal effects will be covered for each year. There is no need to list each item individually. This cover is designed for items such as glasses, mobile phones, handbags etc. Certain limits apply to Unspecified All Risks cover including; €2,000 for any one item, bicycles up to a limit of €320 and personal money up to a limit of €650.
*Refer to the All Risks section of our Household Policy document for full details.
Should I get contents insurance for my home?
This is completely up to you. It will depend on a number of factors including the value of contents in your home and how much premium and excess you are willing to pay.
If you are a homeowner you may prefer to insure your building only. If you are a tenant, or living in an apartment, you are likely to only require contents insurance. In many cases, the building may already be covered by your landlord's policy or by a block policy. However, you should check this with your management company or landlord to be sure.
Information correct as of 6/04/2018.
About the author:Market Management
Date:October 14th, 2015