Personal belongings coverage, also known as contents coverage, protects your belongings both inside your home and while you’re on the go. While typical home, condo and renters insurance policies have personal belongings coverage, it’s still important to review the limits and the value of your personal things. Follow these four steps to ensure you have the right coverage on your policy.
Take a home inventory. The best method is to go room-to-room and document all of your belongings along with their monetary value, even if you don’t think some things are worth much. Keep the receipts for big purchase items and take pictures of your rooms so you can see what you have as well. The cost of replacing all of your things can certainly add up and you’ll want to make sure that you don’t have to do it all out-of-pocket!
Choose your coverage amount and type. Once your home inventory is complete, you should have an approximate total value of your belongings. Typically, the lowest coverage amount is $10,000, but you can increase your coverage to match what you need. You should also consider cash value versus total replacement value. Cash value factors in depreciation, so the longer you have an item the less it will be worth if you need to replace it. Total replacement value covers the cost of the item today, regardless of its age. Your choice of coverage type will influence your premium amount.
Consider additional coverage. In some cases, the standard coverage on your home, condo or renters policy may not be enough. If you have valuable jewelry, collections or antiques, you may want to get your item(s) appraised and purchase supplemental coverage to protect beyond theft, fire and accidents. Additionally, if your home were to be damaged by an earthquake, flood or other natural disaster, your belongings wouldn’t be covered by your standard policy. You should consider adding these optional coverages as well.
Choose a deductible. Consider the amount that you could comfortably pay out-of-pocket when choosing your deductible. While a higher deductible can decrease your premium, you want to make sure that you can afford your deductible if damage or loss occurs.
Talk to a professional. Our InsuraMatch agents spend each and every day helping consumers with their individual needs, and they are trained in every aspect of homeowner’s insurance and contents coverage. Our pros can help you understand and choose a coverage that fits your unique situation; they are independent agents which means they will offer alternatives plus have the expertise to know where you can get the best value. Call for your free coverage evaluation at 844-232-2700 or schedule a call at your convenience.