Contents Coverage (or Coverage C) is the portion of your home insurance policy that covers the cost of replacing your possessions, or home’s contents, in the event that they are destroyed in a covered peril (wind, fire, hail, lightening, theft, etc).
How much do I need?
Typically a home insurance policy will provide 50%-70% of your dwelling coverage towards contents/personal belonging coverage. However, you might decide to purchase more depending on the value of the personal belongings in your home. The best way to know how much contents coverage you need is to perform a home inventory. A home inventory is a list of all your personal possessions with a compilation of photos, receipts, and any other proof of ownership you may have. A home inventory serves two important functions. First, it allows you to calculate the value of your possessions to ensure you are purchasing an adequate amount of contents coverage. Secondly, it will be your greatest asset in the event of a disaster when you need to prove to your home insurance company that you owned that flat screen TV and $3,000 leather couch, for example. Read our tips on How to Perform a Home Inventory. And remember- always keep your home inventory in a safe or at a friend’s house so it is not ruined in a fire or other natural disaster.
What if I need additional coverage for a specific item?
Every policy will have limits as to how much it will pay for each type of property. For example, most standard home insurance policies will only pay $1500 for jewelry lost in theft. Oftentimes a customer will have one particular item that is expensive, and they feel they need more coverage than what is included in their policy. At this point it is recommended that you add a scheduled endorsement onto your policy for that item. A customer, for example, with a necklace worth $10,000 would schedule the necklace on their policy and take out additional coverage to protect that item.
If you think you may need additional coverage talk to a home insurance agent about scheduling an endorsement on your policy.
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Q: What does a standard home insurance policy cover?
A: A standard home insurance policy includes six basic types of coverage:
- Coverage A- Dwelling
- Coverage B- Other Structures on Your Property
- Coverage C- Personal Property/Contents
- Coverage D- Loss of Use
- Coverage E- Personal Liability Protection
- Coverage F- Medical Payments
