Definition
Contents Cover
Contents cover insures the movable belongings inside a home, such as furniture, appliances, electronics and valuables, against insured perils.
Distinct from structure cover for the building, contents cover compensates for loss or damage to household goods from perils like fire, theft, burglary and natural disasters. Tenants typically buy contents-only cover, while owners often combine structure and contents.
High-value items like jewellery may need to be specifically declared and may carry sub-limits or require valuation. Contents can be insured on a market-value or, in some plans, replacement basis. It is an inexpensive but often overlooked protection for the substantial value households accumulate in possessions.
Related terms
- PerilA peril is the actual cause of a loss, such as fire, flood, theft, accident or illness, against which insurance provides protection.
- Home InsuranceHome insurance protects a dwelling and its contents against perils such as fire, theft, natural disasters and certain liabilities.
- Bharat Griha RakshaBharat Griha Raksha is IRDAI's standardised home insurance product covering the building and contents against fire and allied perils.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.