Home and Contents Insurance: What It Covers, Why You Need It

Can You Afford Not To Have Home and Contents Insurance?  

By Meha Ahmad, InsuranceAgents.com Staff Writer 

Home and contents insurance provides financial protection to your home and possessions within the home. To find affordable home and contents insurance coverage, start by filling out our online quote form to find low homeowners insurance quotes and get in touch with home insurance agents.

Living Without Home and Contents Insurance

You may wonder if you need home and contents insurance. The truth is, you probably do. For most homeowners, their home is their most precious material possession. Furthermore, the things found inside your home are most likely everything you own. Do you know what it would cost to replace every single item if it were destroyed in a home fire or flood, or if they were stolen in a break-in? Replacing your property—that includes your home, your electronics, computers, TVs, carpets, furniture, appliances, your clothes, not to mention countless other items—out of pocket could financially break you. Many people in that situation, lacking home and contents insurance coverage, would end up digging themselves into a hole of debt they would have no way of getting out of.

Home and contents insurance is a way for homeowners to not only insure their home, but also everything inside of it. If you take out this kind of policy, your insurer could end up not only replacing everything in the event that is destroyed or stolen, but also replacing it at the new cost rather than a depreciated value.

Home and Contents Insurance Checklist

Chances are, especially in today’s economy, you know what your budget for extra expenses is. Which is a good thing; a responsible homeowner is aware of how much they can reasonably spend on their home and contents insurance. If you are considering purchasing a home and contents insurance policy, just be sure that you know what will affect your home and contents insurance premium.

• Your home. The higher the property value of your home is, the more it costs to insure. That will definitely be a defining factor of how much your home and contents insurance premium will be.
• Your personal belongings. Of course, if your personal belongings are also of the high-end cost variety, it will cost more for the carrier to insure. Also, how much do you own? It’s a good idea to make a list—a sort of home inventory—of everything in your home that you need to insure. Make sure your home insurance agent helps you with this list; he or she may know better what things need to be insured that you may forget or not know to put on your home and contents insurance policy.
• Priceless items. Do you have any priceless works of art in your home? Rare collections? Family heirlooms? How about jewelry? These are probably more important to include on your home and contents insurance policy than your personal wardrobe or furniture. However, some insurance carriers may require you to be a separate rider or floater for your home and contents insurance policy to include this coverage.
• The risk factor. Do you live in a neighborhood with a high amount of crime? If your area has a lot of break-ins (check with your local police department to confirm), it is much more likely that your home may be broken into and your things stolen. The higher the risk, the more your home and contents insurance premium will be. Of course, if your area has a strong reputation as a safe and quiet neighborhood, you’re more likely to see a low home and contents insurance premium.
• Renewability. Don’t forget to update or renew your home and contents insurance policy. If your policy covers an item that doesn’t cost much, but that becomes a collector’s item or antique over a certain amount of years, you’ll want to make sure your home and contents insurance includes the most updated information! The more an item is worth, the more it may cost to insure, but you definitely don’t want a gap in your home and contents insurance policy. Renewing and updating your policy prevents gaps and underinsuring your belongings.

Looking For Home and Contents Coverage Now

If you are now ready to start looking for home and contents insurance policies, start by seeking home insurance quotes online using our simple form located here. Shopping online is the fastest and most efficient way to find home and contents insurance policies. And it’s the easiest way to find a policy that fits your budget. In no time at all, you can be put in touch with local home insurance agents who can help you customize and home and contents insurance policy to fit you. Home and contents insurance coverage will provide you with the financial safety you deserve for your home and belongings.

Published: Wednesday 22nd July 2009