As a homeowner, you take pride in everything on your property from the perfectly cleaned siding and windows out front to the newly renovated kitchen inside. However, just like all other facets of your life, you need insurance coverage to afford some peace of mind and protection. This can be accomplished through homeowners insurance, particularly home & contents insurance, to make sure the inside and outside of your home have coverage. Here’s how you can learn a little bit more about these insurance policies
What is home and contents insurance?
Home & contents insurance refers to a combined policy of these lines of insurance. Home insurance generally covers the cost of rebuilding or repairing your house. This is the structure, the roof, and attachments on the property like sheds and garages. Home insurance may also protect your home from damage outside of your control, like natural disasters. Contents insurance is focused on your possessions, rather than the physical structure. This can include everything for policyholders from clothes to furniture. Depending on the policy, you may be protected from accidental damage and theft in a variety of circumstances.
To compare home and contents insurance, you can explore online to get free quotes regarding these insurance policies. This will let you know how much insurers may charge for the combination of these two policies, as well as some of the excess coverage that is available. For example, some homeowners may be required to get additional flood coverage to protect them from that particular weather event beyond the limit of a standard home insurance or contents insurance policy
Contents Insurance Terminology
As mentioned, contents insurance provides protection for the belongings in your home. This covers damage to furniture and appliances in the event of an incident like a fire or a weather event. You can even ensure personal belongings that you take with you when you leave the house, like jewelry or mobile phones. Normal contents insurance and portable contents insurance can help a homeowner in the event a family member or guest knocks something over or breaks something; you can make an insurance claim to repair or replace it.
The two main types of contents insurance are ‘replacement value’ and ‘new for old’ cover. While definitions of ‘new for old’ cover may differ based on your insurer and homeowners policy, this means when belongings are damaged beyond repair or stolen, new for old insurance will provide you with an equivalent item at no additional fee. Usually, a higher premium will apply for new for old cover for your belongings. Replacement value insurance only covers the value of possessions, and the value of most items depreciates over time
What impacts your insurance costs?
There is a variety of factors that impacts how much your insurance policy will cost, but one of the main reasons homeowners bundle their home & contents insurance together is because it saves them money rather than purchasing each separate policy. The coverage level you sign on for will provide you with more protection, but it will come at a higher monthly premium. The cost of home insurance can depend on many factors, including past insurance claims and where you reside.
Depending on the market value of your home and the value of your belongings, the cost of home and contents insurance can vary. Your premium is calculated based on overall risk, along with other factors like age, location, and the condition of your home. Don’t hesitate to explore the options that are out there for you as a homeowner, and find the policy that fits your household needs and doesn’t force you to dump out your bank account.