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MAIN TYPES OF PERSONAL LINES INSURANCE You can get insurance for many things, but if you own a home, and have possessions in the home plus a car, these are the five main types of cover you need. Insurers often bundle three of these – home contents, all risks and personal liability – into a single package. By Martin Hesse
1. MOTOR VEHICLE COVER
2. HOME CONTENTS COVER
A comprehensive policy covers you for most things that can happen to your car. A cheaper form of cover, “third-party, fire and theft”, will cover damage to the other vehicle/s in an accident, but will not cover damage to your own vehicle. The insured value is not for a new car, but is your car’s second-hand market value, which depreciates each year. If you bought the car new and it is a write-off, you may be paid out less than what you still owe on it.
This covers all the moveable items in your home, but will not cover anything you take outside the home. You need to have an accurate estimate of the replacement value of everything in your home, so that you can be fully insured, and you should revise this figure once a year. Some insurers will allow you to exclude certain items you don’t feel are worth insuring. Conditions will normally include having a certain level of home security in place.
