The purpose of having Home Insurance is to protect the structure of your home against all sorts of disasters – from storms or burst water pipes to fire or impact from a vehicle.
If you have a mortgage on your home, adequate insurance cover is compulsory.
Home Contents Insurance
A Contents policy protects your personal property against accidental damage, theft or fire. There are two types of cover usually mentioned when you take out Contents Insurance – Indemnity Cover and Replacement Cover.
This cover does not provide “new for old” replacement of your belongings. Instead the insurance company will reinstate, replace or repair the item which has been stolen, damaged or destroyed, but they will also deduct an amount for “wear and tear” and depreciation. In this situation, you may find that there is a large shortfall between the amount insured and the current purchase price of an equivalent replacement.
This type of policy, as the name suggests, does give you “new for old” replacement. You will receive the full cost of repairs, or the current market cost for replacement if the items have been stolen or destroyed. All Tas’heelat customers receive this type of cover.