More on contents insurance
Contents insurance is usually arranged on a new for old basis. In other words, if your TV gets damaged, the policy will pay out for an equivalent new one.
You may see indemnity policies offered as opposed to new for old. These policies take into account wear and tear and will reduce the value of your claim accordingly.
In this case, if that TV happened to be a number of years old, the insurance company will pay out based on its current value. While these policies are cheaper, you can see that they will usually pay out a lot less in the event of a claim.
If you take expensive items out and about with you, such as your phone, your laptop or even an expensive coat, you might want to add ‘personal possessions cover’. This cover insures your possessions for loss, damage or theft outside of the family home.