Many home owners likely do not understand content insurance or its significance. Some policy owners believe that the contents of the home are covered by the home owner’s insurance policy. In this budget-conscience time, more and more policies are being written with fewer and fewer frills. Often times these frills are riders on home owner’s policies which reference personal property. Today, probably more than any other era, people own costly portable devices. What happens if an iphone costing hundreds of dollars is crushed in a door or perhaps a high end laptop drops in a sink full of water? The truth may be surprising. Some home owner’s policies only include items which are permanently attached to the insured home or structure, leaving many items uncovered or covered with a high deductible.
Content Insurance on Home Owner’s Policy
Content insurance is available in a number of varieties, from specific coverage of jewelry or heirlooms to general coverage of belongings. Often specifics will appear as a rider on a home owner’s policy. It’s a good idea to read the latest copy of your home owner’s policy. Some policies cover the home contents with a $1,000 deductible, which is not too useful if the cost of a deductible for a loss resembles a mortgage payment or outweighs the cost of the loss.
Tailored Content Insurance
In contrast, content insurance is likely to have a wide variation of deductibles as low as $50 to the $500 range. Often it can include items which can be transported in and out of the home. Always check the fine print. Some examples of these items can include: portable electronics such as mobile phones, laptops and cameras; surfboards, kayaks, skate boards, bicycles, camping gear and even garage items like pressure washers, snow removal equipment, chain saws and more. Specific items should be discussed with the agent when a tailored policy is necessary.
Inventory Your Possessions
It’s also important when selecting a content insurance policy (or a rider on an existing policy) to thoroughly inventory all valuable possessions in the insured home and/or structures. This should be updated yearly before existing coverage is renewed. Costly possessions may be too expensive to replace, but a call to an agent is free.
