Should I get Contents Insurance?

Insuring our possessions is not something that we are required to do but there are a lot of people that do insure them. If you are not sure whether you want to do this then it is worth thinking about the advantages and disadvantages of doing so and this should help you to decide whether it will be a good idea for you to do it or not.


If your possessions get destroyed in ruined then having insurance can help to cover the cost of replacing them. It will often cover for fire, theft, flooding and you can even opt for accidental damage cover as well. You will pay a premium each year or month and then if you need to, you can make a claim for the cost of repairing or replacing items. Insurance differs, so you will have to check what you will be specifically covered for. For example, you will normally have to pay the first bit of money towards the cost of the replacement or repair and this is an amount that will vary between insurers and you may even have some say in how much you want to pay, with a higher amount lowering your premium. Some might include accidental damage but some may have it as an extra that you have to pay more for. Some may include items when they are taken outside of the home and some may cover really expensive collectables.


Insurance costs money. You will be paying out each month or year andso you will need to make sure that you can afford it. Although it can be useful and offer peace of mind, you may never make a claim on it. This means that you will be paying out all of that money without ever getting anything back. You may think that it is worth it, but you may feel that it is something that you just cannot afford.

If you do make a claim on the insurance, then your premium will go up. You will have to pay more money each month or year because you are seen as a higher risk to insure. It is assumed that if you make a claim, then that increases the chances that you will claim again so you are charged more. Also, the insurance company will want to make back some of the money they paid out to you when you claimed.

Some people will pay a lot more than others for insurance. This is partly to do with the area that they live. If they are considered to being in a property that is at high risk of flooding, being burgled etc then the premium will be a lot higher. This can feel unfair and it can mean that you may not even be able to afford the insurance premium at all. It could work out a lot cheaper to save the amount of money each month that you would be paying in a premium. Then if you need to replace or repair something then you could use the money you have saved. This is risky of course, as you may not save up enough money by the time you need to make a claim and then you could struggle. For example, if your possessions are all stolen when you have only made a couple of payments, then you will not have enough to pay to replace them. So, you will need to calculate whether you feel it is worth paying the premium or taking the risk. It is a very individual decision depending on how much of a risk taker you tend to be.

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