Insurance quotes and assistance
Recent Topics Home Insurance Blog & News Questions & Answers
Renters Insurance Stripped
Home Insurance » Coverage
Whose Home Insurance is Responsible?
Home Insurance » Coverage
Expecting Home Insurance Premium Increases
Home Insurance » Blog
5 Steps Home Insurance Policy Holders Must Take Now
Home Insurance » Blog
Do I have to have home insurance?
Do I need homeowners insurance if I'm a renter?

Understanding the Coverage of Your Personal Property

A home is made up of more than just the rooms within the structure; it is a living history book containing all those memories you’ve created over the years. Over time, you probably forget what you have in cupboards but if something happens you’re suddenly aware of the loss. When you take out your first home insurance policy, you’ll almost certainly give a low estimate of the value of the contents of your home. And each year you renew that policy or change insurers, you will probably have the same problem. Unfortunately most consumers don’t realize that they have undervalued their personal property on their cheap home insurance quote until it is too late.

Definition of Personal Property

So what exactly is covered under the personal property section of your cheap home insurance policy? Your furniture, stereo equipment, clothing, computers and all other personal possessions not built into the actual dwelling structure are covered. After an insurable incident, your cheap home insurance policy entitles you to the fair market value of your property unless you signed up for a “new for old” policy (not available in all countries), in which case you’re entitled to replace your “old” property with new property, which is generally more valuable than fair market value. To make everyone’s life easier, most insurers accept general estimates of value for “everyday” contents. Some even provide you with guideline figures. But if you have anything that is particularly expensive or that is difficult to replace, you need to have those items specially endorsed on the cheap home insurance policy. This would include items like expensive watches and jewelry, antiques and other collectibles. There may also be items of sentimental value that you would want recreated, e.g. an engagement ring. For all these items, you’ll meet with an appraiser, agree on a value and take photographs.

Proving the Value of Your Property

Fraud is not uncommon when it comes to insurance claims. Thus, you first have to prove that you owned the items that you claim, that they were damaged and that they are worth what you say they’re worth. Then you have to take reasonable measures to protect them. The best way to do this is through pictures. Make sure you keep before pictures of your rooms and their contents in a fire safe box so that you can prove your claim.

Remember, just because you want cheap home insurance doesn’t mean that you want to cheat yourself out of a valuable insurance policy. While your mind may be focused on the word, “cheap” make sure that you still get the amount of insurance you need in your online home insurance quote to make yourself whole if you should suffer a loss.

You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Tags: , , , , ,

Leave a Reply

Related Posts