Take cover this Christmas
It’s a time for giving, but all those presents under the tree are a gift for burglars. Yours Money Editor Sarah Jagger explains how to ‘insure’ you’re covered this yuletide
What does home contents insurance cover?
Home contents insurance financially protects your belongings against theft or damage from fire and flooding. Think of your contents as everything that would fall out if you tipped your home upside down.
Do I have to have it? Contents insurance isn’t compulsory – unlike buildings insurance which covers the rebuilding of your home – but you need it if you can’t afford to replace your possessions. How do I know I have the right amount of cover?
One in five households are under-insured because we underestimate the value of our belongings, says Direct Line. Make sure you have the right insurance – list all your possessions including items in the loft and shed. Check values using the internet if you don’t have receipts. Make sure the sum insured – the maximum amount an insurer will pay out – is up to date. Use this calculator for guidance (www.gocompare.com/ home-insurance/contents-calculator).
Are my Christmas presents covered?
Most insurers increase the sum insured over Christmas to cover gifts as well as food and drink. The length of Christmas cover varies depending on your policy’s small print, as does the level of insurance. Sainsbury’s Bank increases cover by £7,500, while Co-op Insurance adds ten per cent. Gifts including mobile phones, jewellery and tablets may have restrictions, so check your policy to ensure you don’t exceed your limits.
What do I do if my presents are stolen?
Report the theft to the police, then contact your insurer who’ll make your property secure. Write a list of stolen items, including make, model, purchase price and when and where they were bought. Keep all your present receipts as insurers may ask to see these while assessing your claim.
Can I regularly update my contents cover?
Yes, anytime during your policy’s term. Whether it’s a valuable item or you’ve furnished a new extension, let your insurer know and pay any additional premium.