Household contents insurance is a type of insurance that covers the loss of personal property in the event of a house fire, theft, or natural disaster. It is typically sold by insurers and can be purchased for a fixed amount or for an annual premium.
It is predicted that by 2030, there will be over 1.5 million households without insurance coverage, which could lead to an increase in crime rates and loss of property.
What is the need of household contents insurance?
The household contents market is currently worth £3 billion and is expected to grow at a compound annual growth rate of 4.7% between 2017 and 2022. This is due to increasing homeownership rates and rising home values across the world.
UK households will be able to insure their belongings with a new type of policy that covers the cost of replacing them if they are stolen or damaged.
The Government has announced that the new ‘Home Insurance’ introduced in 2022 will be available for all household items. The policy, which is designed to protect possessions from theft and damage, will cost £1 per month.
The new insurance scheme is expected to cover approximately £2 billion worth of household belongings by 2035 and it could save UK households up to £300 a year.
The scheme is expected to provide protection for approximately 3 million households by 2035.
The UK government has also set up an Affordable Insurance Advisory Service (AIAS) to help consumers find affordable insurance products that meet their needs. The AIAS will provide information on different types of policies, such as the high-risk policy which protects against damage caused by floods, earthquakes, storms, etc., as well as how they work in practice. The service also provides advice on how consumers can protect themselves from fraudsters who may try to sell them products.
What all is covered under the household contents insurance?
Household contents covers items owned by an individual or family members living in a particular dwelling or home.It also covers loss from natural disasters such as storms, earthquakes and floods.
In the UK, household contents are covered under the Consumer Rights Act 2015 which came into force on 6 October 2015. This means that if you have any items worth more than £100 in your home then you must have some form of cover for them – even if they’re not valuable enough to be insured individually – unless you live in certain areas where there’s no requirement for cover.
Concluding
In 2022, the average UK household will have an average of £1,450 worth of possessions. With a growing number of people living in cities, the amount of possessions is increasing rapidly. This means that more and more households are becoming liable to pay for contents insurance.
The cost of this insurance is on the rise too – by 2023 it will be £12 per year for a property with contents worth £1,000. This means that most households will be paying over £300 per year in premiums alone.
This leads to many households having to choose between paying for their belongings or paying their bills.
