Why do I need home contents insurance?

We recognise that home contents insurance may be the last thing on many tenants’ minds, especially when there are so many other outgoings.  But the value of insurance is often overlooked.  Could you afford to replace your things if you were burgled, or if there was a fire or a flood?  If not, you might be tempted to borrow money to replace your essentials.  And that could have implications for your ability to meet your other financial commitments.  

It’ll never happen to me …  

Home contents insurance covers the cost of replacing your things if they are stolen or damaged.  

You may think that you won’t be burgled, or suffer a fire or flood, and hopefully you’re right.  But such occurrences are more common than some people think: 

In 2007/08, there were 729,000 domestic burglaries in England and Wales

The 2007 summer floods affected 120,000 homes and businesses in the UK
 
In 2006, there were 55,800 domestic fires in the UK.  

And unfortunately, people in low-income households face much higher than average risks:

Burglary – 1 in 25 social rented housing were burgled in 2007/08.  This compares with almost 1 in 50 owner-occupied households. 

Arson – arson rates are 30 times higher in lower income communities than in affluent ones 

Flooding – people in the lowest income households are eight times more likely to be living in tidal floodplains than people in more affluent households.  

My things aren’t worth very much  

Many people underestimate how much it would cost them to replace their belongings if they were stolen or damaged.      

Remember, it not just the obvious things you would need to replace if there was a fire or flood.  As well as televisions and computers, there are also white goods (fridges, microwaves), clothes, CDs and DVDs. 

Have a look around your home to see how much you think your belongings are worth.

Valuing your home contents