Home Content Insurance, Just As Important As Home Insurance

Home Content Insurance, Just As Important As Home Insurance – Home content insurance is just as important as insuring your home and should be mandatory if you own your own home.
Most people will go thirty years owing money on their homes, and any time you owe a bank for your home, you’ll have to have it insured so that you’re protecting the bank’s investment. Even if you don’t owe money on your home, though, you should insure it because it’s probably the biggest investment that you’ll ever make.
Most home insurance will cover the contents of your home, as well, but some people will need separate home content insurance for certain items.
Before you decide whether or not to purchase a separate insurance policy or a rider insurance policy – which is tacked onto your home insurance policy but is still somewhat separate – for the contents of your home, carefully review you home insurance policy to see what it covers.
For the most part, your homeowner’s insurance will come with a certain amount of property coverage, and it’s usually calculated as a percentage of your total insurance policy or capped at a total dollar amount. Next, go through your home mentally or physically and try to estimate the amount of money you have invested in the things inside your home.
Think about your electronics, furniture, and even clothing, which can add up to a pretty large investment.
Even people in small homes with no children are likely to have at least $10,000 worth of property in their homes, and people who have years of accumulated things or who have high-quality furnishings and clothing will probably have much, much more than that.
When you estimate, though, you may want to calculate how much everything is worth in its current state and how much it would cost you to buy it all again brand new. Some policies will pay for the actual replacement cost of your items, but others will only pay for their actual worth at the time they were stolen or damaged.
Once you’ve done this, you can see how much home content insurance you need.
Now you can compare this to your homeowner’s insurance. Does it cover all of your property? If not, you’ll need a separate policy or a rider policy. Don’t forget to check that your homeowner’s insurance will pay out for all of your property indiscriminately, since many policies will only pay a certain amount for things like art and jewelry.
Art and jewelry are, in fact, the two things that people are most likely to take out separate insurance policies on.
If you own lots of expensive jewelry or several pieces of original, expensive art, you’ll probably have to have a separate home content insurance policy to cover these items in the event of a disaster. Other things that people often have insured separately are collections of valuable items like coins, dolls, and antiques.
While these things are pretty much irreplaceable, you’ll want to at least get your money back for them in the event of a disaster since they are, essentially, a type of investment that you’ve probably dumped a lot of money into.