Contents Insurance

Contents insurance covers everything that you own and is contained within your household. Coverage is agreed in case of loss, damage or legal liability, but in turn you must commit to keep the insured items at a good state of repair and be careful to prevent theft and accidents. There are two types of content policies.
New/new for old – A replacement as new/new for old policy will pay the total cost of replacing or repairing your damaged articles. Except for cloth and linen, most items can be insured under this policy. However, their coverage might be restricted by their useful life. 
Indemnity – Such policy makes a deduction from the payment of the claim. This accounts for the wear and tear, and depreciation of the articles.
Be aware that if you are underinsured your claim payments might be reduced. The sum insured  is the total amount for which your items are covered, and it should be the maximum your insurer would pay. To make sure you are not underinsured list all the items you have at home and allocate an up-to-date replacement cost for each. Obtain expert valuation for items that are difficult to price. If you buy valuable items increase the amount insured. You can pay an additional premium to cover your items when you take them out of your home. There are limits on the amount insurers are willing to cover, especially for works of art, jewelry and other valuable goods.