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Contents Insurance
 Contents
insurance covers risk from loss or damage to your
personal property (articles you own other than land
and buildings). Even the smallest home can contain
property worth thousands of dollars - for example,
an entertainment or sound system, home computer, or
jewellery.
If a catastrophe were to strike, contents insurance
allows you to replace the contents of your house
(like furniture, clothing, and stereo equipment, as
well as outdoor items like sporting equipment and
gardening tools).
 There are generally
two levels of contents insurance:
Full Replacement Value
Full replacement value means that should the worst
happen and your house is destroyed, along with its
contents, they will be replaced, irrespective of
cost. (There are some exceptions to this, which vary
from one insurance company to another.)
Present Day Value
Present day value means your policy will cover the
cost of replacing or repairing your house contents
to a condition no better than new, less an
appropriate allowance for depreciation and deferred
maintenance up to the sum insured.
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