It can be difficult to decide whether to get certain insurance policies. Some can seem to be very expensive and others may seem a bit pointless. There are some that you have no choice about getting but many are optional and this means that you will need to decide whether they are the right choice for you. Contents insurance is one that some people would not go without but others would be happy to.
Cost
The cost of contents insurance will vary depending on how much your possessions are worth. If you have a lot of expensive possessions then you will need to pay more money than if they are not worth as much. This is because if the insurance company has to pay to replace them, they will have to pay out more money if the items are worth more and so will need to have more money from you to cover the cost of that. Of course, if your items are not worth much, then you might be able to afford to replace them without needing insurance, if they are worth more this could be more difficult. It is good to add up the value of your possessions so that you are aware of how much they will cost to replace. You will probably have to do this if you take out an insurance policy anyway and it can be interesting to see how much what you have is actually worth.
It is important to think about what you can afford with regards to insurance. Most people have other financial commitments such as loan repayments, rent or mortgage, other insurance utilities, contracts, transport, food and other essentials and they will need to make sure that they can cover the cost of all of those before they then think about paying for contents insurance.
Keeping the cost down
There are ways to keep the cost of your content insurance down and this could help those that are wondering whether it is something that they want to take on. The first thing is to make sure that you do a good price comparison between different insurers so that you are not paying more than necessary. You can do this by using a comparison website, broker or by doing research yourself and it should help you to be able to see the range of insurance available and how much it will cost.
Insurance policies also have extras which can be added in or taken away and these can help the cost be reduced if unnecessary parts are taken away. However, it is of course, important to make sure that you do have the cover that you need. You may want accidental damage cover, but you may decide that is too expensive. You will also have to decide whether to replace objects with their current value or as new, which could be a big factor in the price.
The excess on the insurance is also a way to reduce the cost. The excess is the amount that the insured party will have to pay before they get a pay-out. The higher the excess, the lower the premium which means that it can be cheaper this way. However, you will need to be sure that you will be able to afford to pay that money that is necessary if you make a claim. However, if you think it is unlikely that you will make a claim or that you will be able to afford that money then it is well worth making the excess as high as possible. Obviously, if it is extremely high, it will mean that you will not be able to make claims for smaller amounts that you might need. Think carefully about the consequences of this.
Risk
When deciding whether you take the insurance it is worth thinking about the risk. Consider what the risk is of you losing your items, having them burned or ruined by flood or water leaks. Think about how you would cope if this did happen and you did not have insurance available to help you to pay for it. Also think about what a difference it would make if you did have insurance. Then consider whether you think that, in light of this, the insurance will give you good value for money. There is a chance that you will never claim and be paying the money for nothing, but it will give you a peace of mind knowing that it is there to claim on should you ever need it. It is a very personal decision but is well worth thinking hard about.
So, deciding on this can be tricky. You will need to think about whether insurance is something you can afford and if not whether you can find a way to make it cheaper. You also have to think about whether you think that it will give you good value for money or if you feel you would be better off without it. It can be a tough decision and taking time to consider it and discussing it with others can help.