What does contents insurance cover?
Contents insurance covers damage to your household belongings. This covers mainly fire, natural hazards, water and burglary. Comparis explains what you need to know.
15.11.2023
iStock/PixelsEffect/Comparis
1. What does home contents insurance cover?
Home contents insurance insures against damage to your household contents. Household contents are defined as movable property in your apartment or house, including the cellar, garage, attic, garden or balcony. The following items are usually insured:
furniture
electronic devices
pets
clothes
jewellery, watches and other valuables
curtains, vases, carpets
sports equipment such as bicycles and skis
non-permanent structures such as rabbit hutches or beehives
other furnishings
Do you have a holiday home? If so, you must insure its contents separately or list them specifically in your policy. Household contents insurance only applies to damage to belongings at your main residence.
Non-permanent structures are movable items that are not considered part of the building or built-in fixtures. They are usually included in the insured household contents.
2. Home contents insurance: which cover is included?
Cover includes damage to home contents caused by:
natural hazard events such as storms
burglary
With supplemental insurance, you can insure glass breakage or simple theft outside the home.
Your insurer will also usually cover any other costs associated with the claim. These include costs for:
the replacement of locks
replacement of documents
overnight stays in hotels
clean-up and disposal work.
What kind of theft does home contents insurance cover?
Home contents insurances covers costs for stolen items in the following cases:
Burglary: the perpetrator enters your house or apartment without authorization.
Robbery: you were threatened or unable to resist e.g. due to fainting.
Vandalism: the perpetrator damages items in a burglary or robbery without stealing anything.
If you are a victim of theft while out and about – your wallet or bicycle for example – the supplemental cover “simple theft away from home” applies.
Please note: if valuables such as jewellery or cash are stolen, an upper compensation limit usually applies. This upper limit does not apply to valuables stored in a safe. Depending on the insurance company and the valuables’ worth, you can close any gaps in cover with additional valuables insurance.
3. What isn’t covered by home contents insurance?
The cover provided by home contents insurance varies depending on the policy. Therefore, check any exclusions in your insurance company’s terms and conditions.
Events in connection with the following cases are often excluded from the insurance:
war
terrorism
internal unrest
nuclear power
Intentional damage is also not covered by home contents insurance. Household contents used for commercial or professional purposes are also not included.
Self-inflicted damage to home contents is covered by accidental damage to household contents cover. You need personal liability insurance to cover damages to a third party’s property.
Combined offers of home contents insurance and personal liability insurance
Many insurers offer home contents insurance together with liability insurance, offering what’s known as full household insurance.
4. How high is the insured sum?
The insured sum is calculated based on the approximate value of your household goods. Household goods are usually insured at their replacement value. This is based on the price of a new product of equivalent value.
This means that if you have an old carpet, you will be compensated so that you can afford a new one from the same model. To determine the insured sum, you must therefore know the new value of the household goods and keep it in the policy.
5. What happens if I am underinsured?
If you are underinsured, the insured sum is lower than the actual value of your household contents. In the event of damage, the insurance does not pay you the entire amount of the damage, but only the corresponding share.
What happens if I am overinsured?
Overinsurance means that the sum insured exceeds the actual value of your property. In the event of damage, you will still not be reimbursed for more than the value of your household contents. This means you’re paying too much for your insurance premiums.
6. How high is the deductible?
With home contents insurance, the deductible usually ranges from 200 to 500 francs. It is deducted from the cost of the damage. You must pay it yourself.
Tip: adjust the deductible and insurance cover to your current life circumstances. This ensures that you don’t pay too much or become underinsured.
Compare different providers to save on premiums.
This article was first published on 25.02.2020
