Contents House Insurance

If you have a mortgage, then you undoubtedly have homeowner’s insurance. However, most homeowner’s insurance policies do not cover the items that are inside the house; if something were to happen, you’d have to pay out of pocket to replace the lost or damaged items. This is exactly why contents house insurance is available – and why it’s so popular. Unless you have absolutely nothing of value in your home, it is generally in your best interests to sign up for a house contents insurance policy. If you’ve never done so before, you can brush up on the basics below.

What Does Contents Insurance Cover?

Contents house insurance policies vary from homeowner to homeowner, because they are based on what is actually in the home. Anything that is not permanently attached to the house can be covered by a house contents insurance policy. However, specific insurance agencies may have restrictions on what you can and cannot cover with your contents house insurance policy; be sure to ask them about those restrictions when shopping around. Also, many insurers have limits or thresholds on what can be insured; if you exceed the limit, you must take out individual policies for individual items.

Providing a Breakdown

The main way that an insurance company determines your contents house insurance premium is by having you provide a breakdown of what’s being insured. Obviously, you don’t want to include every last minor possession. Instead, you want to focus on big-ticket items that will be costly to replace. Be realistic when coming up with this breakdown, as it will have a dramatic impact on how much you’ll have to pay. The best thing to do is to do a walk-through of your home with a video camera; the footage can be saved to back up your breakdown if a claim ever has to be filed.

Risk Factors and How They Affect Contents House Insurance Premiums

Risk factors have a major role in how much you’re going to pay for contents house insurance. Besides the cost of the items themselves, risk factors – especially crime – are going to have an impact on what you’ll be spending each month. If you live in a relatively safe area, your premium should reflect that by being relatively low. On the other hand, if you live in a high crime area, you’re going to pay a lot more for house contents insurance.

A Note About Renewing Contents House Insurance

Your house contents insurance policy should automatically renew each year. Although your agent might contact you to remind you, you should make a note to update your policy every year as well. After all, you’re bound to have purchased many items during those twelve months. If you leave one or more off of your contents house insurance – and it is damaged or stolen – then you won’t be able to file a claim on it. Get into the habit of keeping records of your major purchases so that it’s easy to renew your contents house insurance policy.