What is Contents Insurance?

Contents ‘only’ insurance is usually taken out by Tenants who rent houses or apartments or by owners of apartments whose apartment is covered by a Management Co, who arrange the insurance of the Apartment Block on behalf of all the owners.Or by people whose Building is insured by their mortgage provider.

home contents insurance
  • Facebook
  • Twitter
  • LinkedIn
  • Google+

What are contents

Contents are Household Goods and Personal Effects, which includes furniture, electrical items (cooker, hob, fridges, dish washers, microwaves, washing machines/dryers, kettles, toasters), computers, laptops, tablets, game consoles, tv audio and hi-fi, bed-linen, clothing, floor coverings, jewellery, garden equipment (lawnmowers, garden tools etc), other tools, garden furniture.

There are some important points to note:

1. Fitted kitchen units and bedroom units or any built-in presses are deemed to be Buildings, not Contents.Free- standing dressers/cabinets, wardrobes etc are Contents.

2. Carpets and linoleum are considered to be Contents but hardwood or laminate floors and tiles, whether ceramic, porcelain, stone or wood are considered Buildings.

3. New for Old is the usual basis of cover which means you must insure your Contents for their replacement/new value so that in the event of a claim you are entitled to have the item repaired, or replaced with a new one (if un-repairable), or receive a cash settlement to enable you replace as new. The only and usual exception to this is for bed-linen, clothing and floor coverings (carpets and linoleum and rugs) which are subject to a wear and tear deduction so are not covered for New for Old, though you must still insure them for their replacement cost. However, there are some Insurers who also will make a deduction for wear and tear for TV, Audio, HI-fi, Video, Computers, Laptops, Tablets etc.

contents insurance
  • Facebook
  • Twitter
  • LinkedIn
  • Google+

Contents Arise In 5 Ways (And Sum Insured Limits)

1. Within the house including garage. (Full sum insured).

2. In Locked Shed/Outbuildings – Usually between €1500-€5000 depending on Insurer.

3. In the Open (gardens, side of house etc, but within the walls/fences surrounding the house) – Usually between €300 and €750 depending on Insurer. This will cover clothes on clothes-lines, lawnmowers and garden equipment, garden furniture, pedal cycles etc which may, temporarily, be left outside in the garden.

4. Business/Home Office Equipment may be covered, usually for a set amount (eg. usually €3000 to €5000), but you must disclose if you do run a business from the home as the Public Liability may also have to be extended.

5. All Risks extension covering items like jewellery, pedal cycles, sports equipment (eg. golf clubs) etc while on holiday or away from the house. Jewellery may require valuations.

Other Restrictions on Sum Insureds:

1. Money-Usually €300-€700 depending on Insurer.

2. Credit Cards-Usually €300–€1250 depending on Insurer.

3. Freezer Contents – Usually €250-€750 depending on Insurer.

4. Oil and Metered Water- Usually €500-€1000 depending on Insurer.

5. Clean-up expenses following escape of oil-Usually €2000 but some Insurers have no limit.

6. Title Deeds- Usually €500-€1000 depending on Insurer.

7. Door Locks- Usually €250-€750 depending on Insurer.

8. Fire Brigade Charges- Usually €1000-€2500 depending on Insurer.

9. Christmas Gifts/Wedding Gifts-Usually for 10% of total Contents sum insured.

Restrictions on Cover

1. Excess:An excess is a contribution you are required to pay towards a claim you make on your policy. There are several separate and different excesses that can apply to different sections of the policy. The standard excess is usually €350 and can increase to €750 and more for water damage claims and be as low as €50 for personal Money and/or All Risks claims. There can also be an option for you to take a higher excess,known as a Voluntary Excess, in return for a discount off your premium.

2. High Risk items:Usually defined as Jewellery, photographic equip, binoculars,paintings, curios, antiques, furs, musical instruments, works of art etc but can also include TV, Audio, HI-fi, Video, Computers, Laptops, Tablets etc. There are usually two limits imposed on these items:
(a) Maximum percentage of Contents sum insured that can be made up of these items is usually 30% to 50% depending on the Insurer and
(b) a Single Article Limit of 5% of the total Contents sum insured applies for each individual item. This does not mean that any item above this 5% limit would not, or could not be insured;just that you must DECLARE the item and it’s sum insured. So, if your total Contents sum insured is €50,000 and you have a TV valued at €3500 (new) then you must declare it.

3. Pairs and Set Clause:Should a single chair from a 3+1+1 suite of furniture be damaged then you will receive repair or replacement of this chair if possible, or if not possible to repair or replace then you will receive cash compensation for the value of this chair only, and not the entire suite. So if the suite is worth  €2000(3 seater €1000 and 2 single chairs €500 each) you will only receive cash settlement of €500,before the excess is applied).
4)Under-insurance condition:Where your total sum insured does not reflect the ‘New for Old’ replacement cost of all your Contents, then you are under-insured, and the Insurer will only pay for the proportion of the loss which the sum insured bears to the the cost of replacement.

home insurance
  • Facebook
  • Twitter
  • LinkedIn
  • Google+

Cover

The main covers provided by a standard Contents household policy are:

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_checklist icon=”” iconcolor=”” circle=”” circlecolor=”” size=”13px” class=”” id=””]
[fusion_li_item icon=””]Fire[/fusion_li_item]
[fusion_li_item icon=””]Theft (possibly with condition that alarm is on when house unoccupied)[/fusion_li_item]
[fusion_li_item icon=””]Water Damage from internal pipes, underground pipes or water escaping from fixed sanitary fittings such as sinks, baths, washing machines, dishwashers etc[/fusion_li_item]
[fusion_li_item icon=””]Storm[/fusion_li_item]
[fusion_li_item icon=””]Flood (depending on the area you live, many Insurers will not quote for this)[/fusion_li_item]
[fusion_li_item icon=””]Escape of Oil[/fusion_li_item]
[fusion_li_item icon=””]Breakage of Glass[/fusion_li_item]
[fusion_li_item icon=””]Money and Credit Cards[/fusion_li_item]
[fusion_li_item icon=””]Freezer Contents[/fusion_li_item]
[fusion_li_item icon=””]Subsidence (depending on the area you live and the age of your house, many Insurers will not quote for this)[/fusion_li_item]
[fusion_li_item icon=””]Rent and Alternative Accommodation[/fusion_li_item]
[fusion_li_item icon=””]Replacement of Locks[/fusion_li_item]
[fusion_li_item icon=””]Contents in the Open[/fusion_li_item]
[fusion_li_item icon=””]Contents in Locked Shed[/fusion_li_item]
[fusion_li_item icon=””]Fire Brigade Charges[/fusion_li_item]
[fusion_li_item icon=””]Christmas/Wedding Gifts[/fusion_li_item]
[fusion_li_item icon=””]Title Deeds[/fusion_li_item]
[fusion_li_item icon=””]Accidental Damage (Some Insurers include this automatically whilst others offer this as an optional extra and charge an additional premium)[/fusion_li_item]
[fusion_li_item icon=””]Public and Personal Liability- Usual Limit of Indemnity €2.6m[/fusion_li_item]
[fusion_li_item icon=””]Tenants Liability for damage,covering damage you may cause to the building you are renting-Usually 10%-20% of Contents sum insured[/fusion_li_item]
[fusion_li_item icon=””]Liability to Domestic Employees- Usual Limit of Indemnity €2.6m [/fusion_li_item]
[fusion_li_item icon=””]Your Content Goes Here[/fusion_li_item]
[/fusion_checklist]

Exclusions

Some of the usual exclusions found on a standard household policy are:

[/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_checklist icon=”” iconcolor=”” circle=”” circlecolor=”” size=”13px” class=”” id=””]
[fusion_li_item icon=””]Loss or damage after house is left unoccupied for more than 30 days[/fusion_li_item]
[fusion_li_item icon=””]Wear, tear or gradual deterioration; gradually operating causes; insects,parasites or vermin; Corrosion,fungus,mildew or rot; Chewing, scratching, tearing etc by domestic pets; action of light; any process of heating, drying, cleaning, dyeing, alteration or repair, misuse,faulty workmanship or design,the use of faulty materials or breakdown[/fusion_li_item]
[fusion_li_item icon=””]Under Accidental Damage Hearing Aids,Mobile Phones,Clothing,Contact Lens,Money,Stamps,Coins or Medals,Food or Drink,China,Marble,Porcelain,Glass or other similar brittle articles may not be covered[/fusion_li_item]
[fusion_li_item icon=””]Your Content Goes Here[/fusion_li_item]
[/fusion_checklist]

Conclusion

The above represents a summary of what a standard Contents household policy would include. When arranging your cover you should study your policy document in full to ascertain the full details of covers, exclusions and restrictions etc.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]