Contents Insurance - What's the deal?!

Insomniscene

Okay, so contents insurance (or any insurance, really) has never been something I've needed before...long story.

Anyway, now that I'm renting a place on my own, I figure that contents insurance is something I should invest in, right?

So how does this work? I've had meetings with the bank and the building society who've both given me quotes of £300 a year or more, but not asked too many questions. They asked the general "accidental cover", "is your flat on the ground floor" and so on, and basically said that whatever happens, I'm covered.

I thought that this was great, simple, but a bit expensive, so I did some legwork. Using the guides on here, I've managed to get a quote as low as £87 a year, but these seem like a lot of complications. Some require me to have a specific lock on the door, some give me the impression that if I bought something new, it won't be covered, and other questions are raised here.

Am I missing something? Or is it as simple as that - the more detail you give, and if you change the locks, you get a better price? Does it work out that the more you pay, the more likely it is you get a payout? If I say that my stereo system is worth £800 but then when I need to claim, they don't pay out because its actually only £750?

I don't get it. If anyone has any advice or can clear up these questions, I'd be grateful.

forgotmyname

Guessing the £87 one wont cover accidental damage? Just general contents for theft etc?

Beware that some quotes may not ask but when the terms and conditions arrive it mak specify that you have a certain standard of lock and locks on windows etc.

Some years back i got a quote from Esure. I specifically said no alarm and no window locks. When the paperwork arrived it had both of them ticked.

If you pay more you will probably have accident cover and new for old. So they will replace your stereo with one of equal spec. Which maybe cheaper to purchase.

But the policy excess and increased premiums may mean its better not to have accident cover and replace these items yourself.

How much can you pick up a used system for? A lot less than £800?

FlameCloud

I'd be surprised if you can get a mainstream insurer to sell an indemnity policy these days, they are almost all reinstatement cover.

Insomniscene

None of these quotes included accidental cover. I'm not a clumsy person really, and to be honest, if I dropped something or accidentally damaged something, I'd just replace it myself.