Type of Policies Available
Generally there are two different home and contents policies available. They are commonly referred to as “Accidental Damage” and “Defined Events”. Defined Events is also sometimes known as “Insured Events”.
The difference between the policies is summarised as follows:
Accidental Damage
This type of policy covers any accidental loss or damage to your property, unless specifically excluded.
Accidental Damage is the more comprehensive cover option. It insures a wider range of circumstances than a Defined Events policy (including the accidental breakage of an expensive object). Accidental Damage policies also contain higher policy limits and allowances.
Defined Events
This policy specifically lists the events that you are covered for. Anything not mentioned is not covered. Common defined events included are:
- Fire
- Theft
- Storm
- Lightning
- Explosion
- Accidental breakage of glass
- Malicious damage
- Earthquake
- Impact
Liability
Both policies automatically include personal Public Liability cover for you and your family living at the situation, in relation to your ownership / occupancy of the home. In summary, Public Liability covers you for legal costs and compensation you become legally liable to pay, as the result of an occurrence in which you were found negligent, and caused personal injury or damage to the property of a third party.
How Much Do I Insure For?
The most common type of insurance is to cover most items for “new for old”, also known as replacement value. It is imperative that the sum insured you select represents the full replacement value of your home and contents.
Specified Valuables & Contents
Many valuable items need to be specified on the policy in order to be insured for their correct value. Items such as jewellery, gold or silver articles, paintings, works of art, antiques, furs and special collections often need to be listed separately.
Some other contents are restricted to certain amounts, unless the items are individually specified. Some examples are: home office contents, money and negotiable documents, tools of trade, and spare parts for motor vehicles or motor cycles. Each insurance company has its own limits, which are detailed in the policy document that we supply on arranging the cover.
We can assist you to identify and correctly insure these types of contents.
