Business, Legal & Accounting Glossary
Contents insurance is insurance in which insurer pays for damage to, or loss of, an individual’s personal possessions provided that they are located within the individual’s home. However, in case of some contents insurance policies, a restricted cover is provided for personal possessions temporarily taken away from the home by the insured party/policyholder.
In this context “possessions” refers to anything that is not everlastingly attached to the structure of the home (In other words: possessions that are permanently attached to the structure of the home can only be insured through home insurance.) Some contents policies also over possessions kept in outbuildings or in the garden area connected/adjacent to the house.
Contents insurance is typically sold alongside home insurance but it can also be bought as a stand-alone policy, particularly for those individuals who are renting rather than owning their home.
Contents insurance should be considered by all householders whether or not they have a mortgage.
Contents insurance covers items such as furniture; carpets, curtains; electrical goods and many policies also cover personal possessions, which may be removed from the home. This is separate to buildings insurance.
Most home contents policies cover loss or damage to your possessions in your home from a series of risks.
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This glossary post was last updated: 15th April, 2020 | 0 Views.