Do You Need Home Contents Insurance?

in Lifehacking

You have already purchased so many types of coverage, from homeowner’s or renter’s to extended warranties. Do you really need to consider adding a home contents insurance policy? If you have accumulated enough personal belongings that would be costly or difficult to replace, it might be a good idea to look into purchasing this sort of insurance. The added peace of mind will help alleviate those moments of panic that creep in when one thinks of burglary or disaster.

Some points to keep in mind when researching contents insurance are cost, the value of the goods to insure, and reliability of the insurer. One of the nice features of these policies are their portability. You can insure your stuff whether you are a renter or you own your home. Before deciding how much coverage you need, you’ll want to talk with your agent if you already have homeowner’s or renter’s insurance to determine how much coverage you have for your possessions already. Usually, there will be a gap, which is the reason this type of insurance came about.

The costly investment in the furnishings of a home or the accumulation of many years’ worth of possessions calls for some form of protection in the event of catastrophe or theft. Obviously, there are items in your home that no amount of money could replace due to their emotional value. Still, imagine having to begin all over again without the basic possessions that we often take for granted and that make life comfortable. Items like appliances, televisions, music players, clothing, lamps, chairs, and books would be hard to live without, especially when we are accustomed to having them. For the purposes of the contents insurance policy, coverage entails all of these moveable pieces, items not permanently affixed to the building.

Still, with all the other policies we are forced to buy, it pays to be prudent about insuring our belongings. Newly married couples may not have many possessions yet, and a large policy would be a waste of limited resources. Even people with so much stuff they don’t know what they have may be paying too much to protect it. That’s why it’s a great idea to make a home inventory so you can decide what your contents are really worth and insure accordingly. A home inventory will certainly help both you and the insurance company know what’s been lost if you ever need to file a claim.

When it comes to guidelines for the chronicling of one’s possessions, a video tour of the home is the most recommended strategy. This allows the viewer to see each item, its age and condition, and to replace the item according to its worth. If receipts and serial numbers are accessible and easy to film, they make a great addition to the video and help to strengthen the claim. It also doesn’t hurt to film some sort proof of the date of the filming, except that it will prove that your once top of the line gaming computer is now eight years old. Dating the inventory does help the policyholder know how recently the process was completed and will keep multiple filmings in some sort of order.

Home contents insurance may be a smart move if one wants to avoid having to start from scratch should unexpected trouble strike. While your belongings may fall under coverage you’ve already purchased, get that policy out and read it to be certain. Cheap home insurance will likely not cover much, if any, of your personal items. The trick is to know what you own, know how much it would cost to replace it, and know how much of that is already covered under existing policies. Only then can you be assured that you aren’t buying too much or too little peace of mind.

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