A home insurance policy typically offers three different types of coverages, which are coverage for your home, for your personal property, and for liability issues. If you are not sure if your policy offers enough coverage for your personal belongings, you should talk to an agent about this. Here are several things you should understand about the coverage you have for your personal property.
Most Insurance Companies Base It on a Percentage
When you purchase home insurance, the main thing it will cover is your house. If a fire causes it to burn down, your policy should offer enough coverage for you to rebuild the house, and your policy will typically state how much money it offers for this purpose. For example, your policy might state that it offers $250,000 for the structure of your home, and you should make sure this is enough money to rebuild it if something ever happened to it.
When the insurance company calculates the personal property coverage for a policy, they will typically use a percentage to do this, and the typical percentage is around 50%, but it could be as high as 70%. This means that your policy probably offers at least $125,000 of coverage for your personal property. If a fire destroyed your home, this is the top amount you could receive to replace the things you owned.
Complete a Home Inventory to Make Sure You Have the Right Coverage
One of the best things you can do to make sure you have enough coverage for your personal property is to complete a home inventory. While this can be a tedious job, it is something you really only need to do one time, and it will come in handy if you ever need to file a claim for a complete loss.
To do this, you should create a list of the things you have in each room in your home. Write down the item, the brand, and the amount of money it cost you to buy the item. If you can, take pictures of the items or take a video of everything you own. This list will come in handy if you ever need to file a claim, as it will help you prove that you owned the things you are claiming you own.
If you have questions about your coverage amounts for your homeowner's insurance, talk to an insurance agent today.Share