With money tight in most British families, it can be hard to see why you need to pay out hundreds of pounds each month to cover your various types of insurance. Buildings, car, life… But is home contents insurance worth taking out?
It can be tempting to cancel home contents insurance as it is not required by most mortgages don’t have clauses including home contents but they often require building insurance as this protects their investment as much as it protects yours. Needing to claim on your home contents insurance is fairly rare, as most people won’t bother to use it unless they’re having issues with big-ticket items. But have you considered all the possible uses for home contents insurance?
In the case of natural disasters such as floods, lightning strikes or earthquakes, it is possible to lose all your home contents at once. Furniture, CDs, DVDs, not to mention invaluable things such as photo albums and memorabilia. Clothing, bedding, even your Auntie Edna’s dinner service could all go down the pan in a single stroke.
A burglary can leave you in the same situation. People could clean out your house, stealing any and all possessions they can and selling them off on the black market to earn their money.
Finally, in the event of a fire, which can be started by any number of causes including lightning, electrical failure, a cookery incident gone wrong or arson by a person wishing you harm, you can lose your home as well as everything in it in the blink of an eye.
Of course, these events are rare. It’s not every day that you’ll have a bus go out of control and drive into your front room, ruining everything you own in one fell swoop. Fires are relatively rare, and when they do happen the response time is cut down massively from what it was even ten years ago. Burglary alarms mean you can keep an eye on your possessions even when you’re asleep or not at home. Natural disasters are a rarity in this country, further cutting down the edges.
But sit down and consider, for a moment, how long it took you to accumulate everything you currently own. How much would it cost to replace, and how much time would it take for you to earn that amount in disposable income that could be used to buy replacements?
If you have a near-unlimited income that allows you to replace your possessions at the drop of a hat, home contents insurance is probably a waste for you. But if this isn’t the case, consider the payments a way of ensuring you won’t ever have to go without the bare necessities for long.