Protecting Your Belongings with Contents Insurance?

Answer 1

Contents insurance is a type of insurance that protects the contents of a person's home. These policies cover items like furniture, artwork, jewelry, and other valuables. Some policies will also cover items located in the customer's yard, shed, or other structure on their property.

Who Should Purchase Contents Insurance?

Both homeowners and renters can benefit from protecting their possessions with contents insurance. While most homeowners insurance polices do provide contents coverage, the amount of coverage isn't always enough. The average policy offers contents coverage equivalent to anywhere from 50 to 70 percent of the customer's dwelling coverage.

Additionally, most policies limit the amount of money they will give a customer to replace specific items. For example, many policies will only cover up to $1,500 worth of jewelry that is stolen from the home. If a person owns expensive jewelry, artwork, electronics, tools or furniture, they may need to purchase additional contents coverage.

Renters should also purchase contents coverage. While landlords are responsible for insuring their property, they are not responsible for a tenant's personal belongings. If a rental property is damaged in a fire or other storm, a renter will not be compensated for their damaged property unless they own contents or renters insurance. Contents insurance also protects against theft that occurs in a rental property.

Is Contents Insurance Worth the Additional Cost

Contents insurance is something that many people fail to even consider. Most homeowners just assume that their homeowners policy has them covered. Also, since landlords rarely require tenants to have contents insurance, many renters don't realize that their possessions are unprotected.

Every renter should insure their belongings, regardless of whether they own lots of valuable jewelry or other expensive items. Not only is contents insurance essential, but it's also affordable. These policies can usually be purchased for a few hundred dollars a year. Because these policies are so affordable, there is no reason why renters should not protect their possessions.

Homeowners should also review their insurance policy and determine whether they need additional coverage. To do this, homeowners are urged to take a detailed inventory of their possessions. If possible, collect important receipts and take pictures of expensive items. This will make it easier to prove their worth if these items are damaged or stolen. Homeowners that need additional contents coverage can extend their policy or include a �scheduled endorsement' to protect a specific item. While this may come at an additional cost, proper coverage is often worth the additional cost in the long run.