Contents insurance offers you financial help if bad things happen to you or your stuff. In exchange, you pay monthly payments (your ‘premium’) to your insurance company.
What does contents insurance cover?
A typical contents insurance policy (also sometimes known as home contents insurance) has three main categories of cover: Contents, Temp Accommodation, and Personal Liability cover. Your contents insurance policy will cover the stuff you own against named perils (fire, earthquake, burglary etc) when you’re at home or out and about. It won’t however cover you against theft outside the home. If you want your stuff to be covered for theft, add the add-on Theft and Loss cover for some peace of mind.
How much contents insurance do I need?
Your contents policy will include a section dedicated to your ‘contents,’ or your personal property. This is the amount of cover you have if something happens to your stuff.
Do note: there are limits within this cover, and some of your items that are worth more than £2,000 require high-value item cover , such as expensive jewellery or bikes. You’ll want to apply for high-value item cover for these valuables.
So how much will this protection cost? First, you’ll have to assess how much cover you need. Your stuff adds up, so do yourself a favour and take a look around your place and go over these three simple steps to save time (and money!) later:
- Walk around your flat or house, and take pictures (or a video) of your personal property
- Make a list of valuable items, and estimate how much they cost
- For bulk items like shoes, or kitchen supplies, give ’em a nice round number
- Add all of this up and round to the nearest £10K to determine how much cover you’ll need
For example, if you have £27K worth of items, you should choose a contents amount of £30K.
How much does contents insurance cost?
At Lemonade, contents policies start at £4 per month; but your final premium depends on a few different factors like the amount of cover you choose, the add-ons you purchase, or the amount of excess you set for yourself. You might also own a few different high-value items that are worth more than £2,000. If that’s the case you’ll also want to apply for some high-value item cover which covers the item for the full worth above the standard £2K. All these factors might increase your premium.