Contents insurance is there to help pay for the replacement of personal items in an home. This could be a home you are buying or renting. It could also apply to an apartment or other dwelling where you are residing. The items that can be included are furniture, clothing, jewelry, and any other items that aren’t part of the structure of that dwelling.
How much will it Cost?
If you are the owner of the dwelling, then you can get contents insurance as a rider for your homeowners insurance. This will cost you less than getting this policy alone. The amount of it though will depend on the value of the contents. If you have pieces of jewelry that are worth thousands of dollars then your contents insurance premiums will be higher than someone that doesn’t have such items on hand.
The replacement cost of such items is what will determine your contents insurance premiums. For example if you have a TV that is 5 years old, you may not think it is worth anything. Yet to replace that TV it could cost $900 for a new one. That is the price that the insurance will use to calculate the total replacement costs of your contents.
Don’t Assume you are Covered
Many people feel that they don’t really need contents insurance. They assume they are already covered. Either by their homeowners policy or through the landlord’s policy on a particular dwelling. It is very important to understand that this isn’t always the case. Too often people assume they have such coverage, but it isn’t until they need to file a claim that they learn it doesn’t exist with the policy that is in place.
Documentation
In order to accurately inventory the contents for the insurance, you need documentation. Photos of the items or a video is a great idea. Make sure you get every single item in the room. Get plenty of close ups as well as images of those that are far away. This will help you to easily identify anything that may be missing. It also helps to verify to the insurance such items were in your home.
This documentation can help you to get your claim filed faster. It will also make filing the mandatory police reports easier. If you come home and find that items are broken or missing, don’t touch anything. Call the police so that they can look for clues and fingerprints. Then you can ask for permission to take photos of the scene for your insurance company.
Keep the Policy Updated
While you don’t need to make an addition every time you buy an item, you do want to keep your policy updated. If you sell items or you replace them with new ones you want to make sure that is all documented. Keep a record of the dates of such changes. Every 3 months or so you should look over your contents insurance policy. That is when you can make those additions and deletions to ensure it is all current.
David Bester is the content coordinator for a household contents insurance website in South Africa
