While we don’t think twice about purchasing insurance for our cars and homes, have you ever thought about the value of your possessions if you rent? Contents Insurance offers a financial safety net to protect the value of your personal items and valuables in the event of the unexpected, subject to your deductible.
Generally, contents are considered all items within your residence that you would take if you were moving while excluding any permanently installed fixtures.
Benefits of Contents Insurance
There are many benefits of Contents Insurance that you should consider:
Peace of Mind
There are likely items you own that would be upsetting to have stolen or damaged; this is where contents insurance can offer you peace of mind. You’ll always have confidence that the items you care about (whether your furniture, electronics, appliances, jewelry) will be protected in event of the unexpected, subject to your deductible and limits.
Recovering From a Disaster
Did you know that house fires are one of the most common causes of damage to homes? If your possessions were damaged beyond repair as a result of a fire, you’d be faced with a considerable cost to replace these belongings. As a renter, you need to be proactive about protecting your belongings. Ensure that you have adequate contents insurance coverage within your tenants insurance policy so that you would receive the necessary funds to replace all impacted belongings in the event of a catastrophic loss.
Keeping Your Landlord Happy
Many landlords now make it a requirement to have an in force policy prior to moving in.
Two Types of Coverage
A comprehensive tenants insurance policy is an ALL RISK policy. You are insured against all risks of direct physical loss or damage subject to the exclusions and conditions of the policy. Essentially, all events are covered unless it is specifically excluded. Some common exclusions include wear and tear, earthquake or damage caused by animals owned by you or in your care, custody and control.
A standard tenants insurance policy is a named perils policy. This policy is more limited on coverage and therefore the least expensive to purchase. You are insured against loss or damage caused by a number of specifically listed events. The most common insured perils being fire, lightning, theft and windstorm. Beware of the exclusions.
Who Needs Contents Insurance?
Whatever your age or stage of life, you likely have possessions that would be costly to replace should something happen. For this reason, Contents Insurance is important for any renter, protecting your valuables while they are in your home, or even while you’re away.
Further, it’s important to know that your possessions are not covered by your landlord’s insurance policies. If you’re looking to have your belongings insured, securing a renters insurance policy is job one. Compile a home inventory – a comprehensive list of your possessions and valuables – and talk to your insurance broker to make sure that you have the necessary coverage for these items.
Considerations for Contents Insurance
Here are a few considerations when shopping for the right contents insurance policy for your needs:
As part of making a claim through a contents insurance policy, you may have to pay a deductible, a portion that you agree to pay out of pocket towards the cost of the claim. This means that your insurance payout will be reduced by that deductible amount. Your deductible will be a set dollar amount with $500 as the minimum. In general, the higher the deductible, the lower your insurance premiums.
All contents insurance policies will also have coverage limits; this is the maximum amount that your policy will pay toward a claim. You may be able to choose your coverage limit based on the total value of your belongings, but note that some policies will feature sub limits on certain valuables such as jewelry or furs. If you have high-priced valuables, you may be able to purchase a policy endorsement to protect those select items.
If you have certain possessions that may be considered high-ticket items – such as expensive jewelry, musical instruments, or art – then your contents insurance policy may not offer enough coverage for these items. Consider getting these select valuables appraised by a professional before purchasing extra coverage.
Note that your Contents Insurance policy will only pay a claim on a covered loss. An exclusion is a specific peril or hazard that your insurance company will not provide coverage, or in other words, you will not be able to file a claim for this sort of loss. Some common exclusions may include damage to your belongings from general wear and tear, flooding, earth movement (i.e., an earthquake or mudslide) or from insects and rodents.
Talk to an Insurance Broker!
Prior to purchasing a Contents Insurance policy, it’s important to understand what perils you’re protected against, what possessions are covered under your policy, any existing exclusions, and how much coverage you’re eligible to receive should something happen.
Trusted by the community since 1984, Keller & Associates Insurance Brokers has the expertise and experience to help you protect the things you care about, in the event of the unexpected. We are committed to acting in your best interests to understand your needs, and seek the necessary endorsements so that your Contents Insurance policy provides the appropriate coverage.
Reach out to our team today to get the protection and peace of mind you deserve.