Protect Your Household Contents! Go for Home Contents Insurance

Home and contents insurance policy helps you not only to insure your home but its contents. In case of a tragedy like damage due to fire, the home and contents insurance policy comes to aid. Insuring all the major items in your house is very essential. It gives you a sense of peace knowing that your valuable assets are all insured.

Insurance Covergae

The home and contents coverage policy provides coverage to items like carpets, curtains, furniture items, items in your garage., accidental damage to television set, your personal computer,Refrigerator,heating systems, Air conditioners, replacement of locks and keys in case of burglary in the house,

Damage To Personal Property

Check with your insurance company or agent about the personal property coverage in your Home owner's insurance policy. The policy would cover all the personal items belonging to you and your family members. Limited coverage is given to motor boats. If you want to cover your other vehicles like snow boat, car or any sports equipment, then you must consult your insurance agent for the additional coverage.The holiday and home contents insurance policy provides the same coverage in case you go on a holiday.

Items With Limited Coverage

Certain personal items that have limited coverage in the Home and Contents insurance policy are as follows:

• Antique items
• Jewellery
• Silver ware
• Money
• Personal guns

You must consult your insurance company to take additional coverage for these items. You can insure your home and its contents for actual value or replacement cost.

Actual cash value

The standard insurance companies insure your home and its contents on an actual cash value basis. Actual cash value is nothing but the value after deducting the depreciation. Depreciation refers to the value of the item that keeps decreasing as its age increases.

Replacement Cost

It is the amount of money needed to replace or repair your house without depreciation. Some companies insure your home and its contents for replacement value but the premium for this policy is higher.

Points To Remember

The points that you must remember before you insure your home and contents for replacement or actual cash value are as follows:

• If you add an extra room or buy a new expensive item, then the replacement cost will increase.
• As years roll away, item value will be depreciated.
• If you are insuring with replacement cost, then it is better to insure for nearly 80% of replacement cost value.
• Once a year, check with your insurance company regarding the coverage of the latest additions in your home.

Continue to:Optional Coverages Under Home Insurance

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