Some people might scoff at the title of this article for two different reasons. The first reason being that they believe home contents insurance is ridiculous and does not need to be discussed, or secondly because they believe it is obvious why home contents insurance is so important! For those whohave an open mind, read on.
Home contents insurance covers your belongings. You can insure whatever you like, right from your Window blinds here to your TV to your kitchen to your jewellery. Different policies offer different types of benefits. Usually home insurance covers all kinds of contingencies that may result in loss or damage of your property.
Contingencies include damage or loss due to fire, floods, electrical accidents, and theft. There is a whole list of circumstances under which you will be compensated for the monetary value of your items.
People argue that it is better to save the money and make a contingency fund rather than paying for insurance. The reason why so many buy insurance is that the amount you pay is obviously less than the amount you would actually need to re-purchase your contents. The amount is paid in small instalments over a period of time.
Insurance policies are like bets. They are based on the possibility rather than the knowledge. Nobody can predict what will happen in the future, but we can certainly protect ourselves from a possible calamity. Prevention is, after all, better than cure.