Insuring your personal contents (aka your personal property) is a big deal. But making sure you're accounting for all your stuff, when you're not even sure what's hiding out in your closets, can be a bit daunting.
Luckily, your independent insurance agent can help. They're licensed experts in all things insurance and know all the tricks of the trade to getting you the proper amount of personal content coverage. But first, here are a few things you should know about personal content insurance to get you started.
Where to Buy Personal Content Coverage
The best place to buy coverage for your personal content is through your independent insurance agent. The personal contents will be included under your homeowners or renters insurance policy and can be adjusted accordingly. Your agent works with a number of insurance companies all providing different perks to suit your insurance needs.
They have options, and those options will give you a variety of coverages with multiple price points to fit your budget. Your independent insurance agent will also have policies for stand-alone personal content coverage in case you aren't currently renting or in homeownership.
What Is Personal Content Coverage?
Personal content coverage is, well, coverage for your contents, such as your furniture, TV, clothing, and lawnmower. All the items used in your home that are not permanently attached are typically covered under your renters or homeowners policy under personal property coverage.
Personal property coverage is a percentage of your dwelling amount if you have a homeowners policy or an amount you select if you have a renters policy. This amount needs to be as close to the amount that it would cost to replace all of your personal belongings. That's every pair of socks, all your hangers, knives, forks, furniture, and more.
Not to worry, though, your independent insurance agent can help you determine this number so you aren't sitting in the corner too overwhelmed to add it all up. Your agent will be your knight in shining armor when it comes to figuring out the proper amount of coverage so you don't have to.
How to Know if You Have Enough Personal Content Insurance
The number is different for everybody and it all depends on how much stuff you have and what it's worth. The best way to make sure you're really covering everything properly is to keep a running total. This running total should be discussed with your independent insurance agent so they can make sure the policy you are getting has the right coverage for your contents. Different carriers provide different coverages for your personal property — some more robust than others.
You also want to be sure how your policy responds to a claim when you need to get your personal contents replaced. Reading the fine print of the policy you have is a good place to start, no matter how boring it may seem.
The Three Different Personal Contents Insurance Coverage Options:
- Market value: This provides you with replacement compensation on your personal property up to whatever the current market value is at the time. This may be a good thing if the market value is higher than when you purchased it, or it could be a bad thing if the market value is lower.
- Depreciated value: This provides you with replacement compensation for your personal property, but only up to the depreciated value. This means the insurance company will factor in depreciation based on the age of the items and give you a depreciated amount of coverage back.
- Replacement cost: This coverage is based on the content's true replacement cost. Whatever you paid for your items, the insurance company will replace to like, kind, and quality of that item.
All coverage options should be discussed with your independent insurance agent so you can select a policy offering that best suits your needs.
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What about Invaluable Personal Contents?
It's kind of hard to insure something that doesn't have a price tag associated with it, isn't it? This can be items such as photos of the children when they're young that were lost in a fire, or maybe a piece of jewelry that has very little financial value, but your deceased mother gave it to you before she passed.
Things in this life don't always have a monetary value attached to them, but they sure are priceless to those who own them. When it comes to insuring them, the simple truth is the insurance companyh will replace up to like, kind, and quality if it is a replaceable item. But if it's something like family photos that weren't accustomed to our digital world, then those aren't something that can be replaced and thus wouldn't have a dollar amount associated with them.
Firearms, Furs, and Expensive Jewelry
These content items are usually better off as an endorsements on your homeowners or renters policy, known as scheduling. Scheduling your higher valued items will give you replacement cost coverage on them with no deductible and mysterious disappearance in most cases. That diamond engagement ring that you just can't find would qualify as a mysterious disappearance claim.
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. And as your needs change, they'll be there to help you adjust your coverage, up or down, to make sure you're properly protected without overpaying. Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Candace Jenkins
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