Article

Going without household contents insurance can undoubtedly be a false economy but, unfortunately, it is one that many people consider making when they are strapped for cash.

The Association of British Insurers (ABI) has traditionally reported that around one in four homes have no contents cover, and the problem is getting much worse during the current economic downturn. ABI research results released this June show that 22% of respondents have cancelled or not renewed their contents insurance during the last year to save money¹. But many of these have probably failed to fully appreciate the breadth of cover such a policy can provide.

Contents insurance will cover loss or damage to virtually anything that is not permanently attached to the structure of your house - although valuable items like jewellery, antiques and works of art worth over a certain amount (typically £1,500) must normally be specifically listed on your policy.

The insurance also offers useful extensions. Personal possessions cover will insure items of personal use when they are away from your home; key cover can refund the costs of losing your keys and legal expenses cover can meet the costs of pursuing civil actions such as property, employment or contract disputes.

Even those who continue with contents cover often don’t have enough of it. Try listing every item you own and then work out what it's worth at today's prices. You could find you need double your present cover! But premium costs can be reduced by feature such as no-claims discounts, voluntary excesses, and discounts for smoke detectors.

¹ Association of British Insurers