Insurance for your STUFF – Household Personal Property

You Bought a House!

You’ve purchased a home. (YEAH) You met with your agent and calculated the estimated replacement cost for your hew investment and you’ve requested an insurance policy (because it’s a requirement of your loan).  So, what are getting for your hard earned money?

What does your home insurance policy give you?

Most standard home insurance policies provide additional coverage based upon the replacement cost of your home.  For example;

  • 10% for other structures – personal use only!
  • 50-80% for household personal property
  • 10% for loss of use

Let’s focus on your STUFF

You start filling your new home with items that are near and dear to your heart.  And some that simply take up space on a garage shelf!

Can you replace it?

Most people I talk with assume their homeowners policy will replace their personal property in the event of a claim. That’s not necessarily the case.  If you do not have replacement cost coverage on your personal property, your policy will give you the actual cash value of your contents.  Actual cash value includes a reduction for depreciation. (think garage sale price)

Do I have enough coverage?

Another misconception is that your policy will automatically provide an adequate limit of coverage to actually replace all that is lost.  With the rising costs of household goods we have found the cost to replace personal property can be as much as the cost to rebuild a home.

Think about electronics alone.  If you have a few smart phones or laptop computers, a smart TV and a gaming system, the cost to replace these items adds up quickly!

What does that mean for me?

If your policy only provides 50% of the dwelling limit for contents you may not have what you need.  Take a look at your policy, take a look at your home and review what you would need to replace in the event of a loss and have a discussion with your agent.  The cost to increase this limit of coverage is worth it!

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