Personal property insurance basics and tips

Imagine that a huge tropical storm has hit your area. Your house and car were insured, so they can be replaced. But did you have contents insurance for your other important items?

This type of coverage is actually offered within your renters or homeowners insurance policy. What this does is cover any goods in your home that are not permanently attached to it. This includes objects such as furniture, books, computers, clothing, and other devices. With most carriers you are covered up to forty percent of the value of your residence policy.

However, there is a problem with the forty percent in a standard homeowners insurance policy. Delicate and hard-to-replace assets as a whole are only protected up to a maximum of $1,000. This means any group of items that includes firearms, silverware, jewelry, furs, watches, and documents. Agencies do this in hopes of encouraging people to purchase additional personal property insurance. It is advisable to do this if you own a lot of these types of valuables.

Something you want to do at some point is make a list of your possessions. This way you are prepared in case of fire, flood or theft. Things will generally go much smoother with the agent and paperwork. Create an inventory list in categories to make it easier so you don’t miss much.

After your inventory is complete, sit down and estimate the replacement cost for everything. Keep in mind that clothes and similar everyday objects lose their value over time. On the other hand, some electronics and memorabilia are valued. Once you have the estimate, store it in a folder in a safe. Include any sales receipts, serial numbers, or video or photo evidence. Keep it up to date!

A natural disaster or theft can happen to anyone at any time. You don’t want to lose everything you have and not be able to replace any of it. Make sure you have contents insurance with your other policies!

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