Most people regard insurance as being something of a pain in the neck. Paying out money, every month, just in case something happens seems slightly mad, but it actually does make sense. When you take out a mortgage, for example, the lender will insist that you take out a buildings insurance policy. In fact, they’ll probably helpfully suggest one of their trusted associates, but it will pay you to shop around rather than listen too much to a sincerely concerned mortgage company’s advice on such matters. Compare home insurance companies and choose one that works for you.
Equally, in an age when burglars seem to lurk in every shadow and you can’t leave your front door open for five minutes without someone walking in and helping themselves, you’d be plain silly not to take out at least a basic level of contents insurance. Contents insurance will cover your personal possessions against damage and theft, as opposed to the more divine acts of subsidence, fire and floods, which are covered by the buildings insurance.
Some items that you take out of the house with you may also be covered by a contents policy, such as bikes and cameras, but you’ll have to check. Also, the policy may not cover possessions you take on holiday, when a travel insurance policy will have to be taken out separately. Bear in mind that some valuable individual items may need to have their own separate insurance. ‘New for old’ will not provide anywhere near the cover you need, especially if your priceless family heirlooms or original Picassos from the artist’s Blue Period are stolen.