· 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:
· Indemnity 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.
· Replacement Cover
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.