If you own your own home, whether it’s recently been bought or you’ve lived in it for years, chances are high that you have contents insurance to protect it from damage and theft. But what exactly is contents insurance, how much does it cost, and do you even need it? In this article we explain all the basics of this type of insurance and why you may want to consider it as part of your overall home insurance package.

What is Contents Insurance

Many homeowners are surprised to find out that their home insurance does not cover their belongings. Contents insurance is an important thing to buy if you want your personal property to be covered in the event of a fire, flood or other natural disaster. If you don’t have contents insurance, or are unsure if your coverage will be enough, talk to your agent today. They’ll help get you the right type of coverage for both your possessions and house.

How Does it Work

Home insurance typically covers the cost of rebuilding your home in the event of a fire or other disaster. Contents insurance, on the other hand, covers what’s inside your home. It might seem like an unnecessary expense at first, but you may find that it’s worth the investment when you consider what could happen to your belongings if they were uninsured. For example, let’s say that all of your furniture was destroyed in a flood. Without contents insurance, you would have to replace everything from scratch because homeowners insurance doesn’t cover anything inside the home.

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When Do You Need it

You can get contents insurance as part of your home insurance. When considering whether or not to get contents insurance for your home, be sure to think about your belongings – what would happen to them if your home burned down or flooded? One way to make this decision easier on yourself (and less expensive) might be to take inventory of what you own. If you have a lot of valuable items, like jewelry and electronics, then getting contents insurance may be a good idea.

Choosing the Right Policy for You

Home insurance provides coverage for your home, contents and personal belongings. Your home is normally insured under a Homeowners policy or Condominium Unit Owners policy. Contents insurance covers your personal belongings against loss or damage from fire, vandalism, theft or other causes. You may be able to insure your vehicle with the same insurer that provides home insurance as well as cover certain types of valuable items such as jewelry, furs and silverware under a Jewelry Floater provision of a Homeowners Policy.

The Importance of Regular Home Valuations

Home insurance can be a confusing subject. Most people don’t know what their home insurance does or doesn’t cover, if they even have any at all. But one thing that many people fail to consider before signing up for home insurance is the importance of regular home valuations. This can help prevent a homeowner from paying more in premiums than necessary due to inflation, as well as reduce the chances of being underinsured in the event of a disaster.

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Things to Look Out for When Buying

It’s important to know what your home insurance doesn’t cover. If you live in a flood-prone area, flood damage can be excluded from your policy. In addition, if the damage was caused by an animal or pet, homeowners insurance may not cover the cost of repairs. Other things that are typically excluded from coverage include mold and earthquakes. 

It’s also important to know how much your contents insurance will cover for each damaged item. For example, many policies only cover up to $2,500 worth of personal belongings such as clothing or jewelry. If this limit doesn’t meet your needs, there are other options available such as full replacement value or agreed value coverage.

Do I Have To Have It…Really?

It may be a hard pill to swallow, but chances are that if you have contents insurance, there will come a time when you’ll find yourself asking Do I Have To Have It…Really? You don’t want to be unprepared for something like a break-in or fire. If your home were compromised due to one of these accidents, would the cost of repairing or replacing your belongings be more than the deductible on your home insurance?

How Much Does It Cost?

Home insurance can be a confusing topic. It’s one of those things that has to be looked at as a whole instead of just paying attention to one part of the coverage. You can’t just purchase contents insurance without also getting home insurance. There are several different types of home insurance, but the most popular ones are for fire and theft coverage. If your home doesn’t have these two types of coverage then you don’t have any kind of home insurance; thus, it would make sense to get them before you buy anything else. But how much does this kind of insurance cost? Home insurance premiums vary depending on a number of factors like your location, the size/type of house/apartment, age/occupation, etc., so there isn’t an easy answer to that question.

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