Most people own more belongings than they realize. A room-by-room inventory is the best way to assess your contents coverage needs. Identify each item. Include make, model, and purchase price when possible. Appraisals are useful on high-value items. Photographs and video recordings are helpful too. Total the value your belongings. Compare this number to your contents coverage limit. Get in touch with your homeowners insurance agent if you need to increase coverage.
Review your policy's contents loss settlement terms, covered losses, and limitations. Personal property is typically insured for losses specifically listed in the policy. Fire, wind, smoke, and theft are among them. Most contracts resolve contents claims on an actual cash value basis, which means depreciation affects the loss settlement. Insurers offer a variety of endorsements to tailor policies for individual coverage needs. Contents replacement cost coverage is one of many buy-back coverages available. In addition, check restrictions that limit claim settlements on belongings like jewelry, silverware, artwork, computers, and more. Talk to your local insurance agent about optional endorsements to address your situation.
Be familiar with the policy deductible. A high deductible lowers the premium, but you will pay more out-of-pocket when a loss occurs. Adjust your emergency fund accordingly.
Personal liability is an important and often overlooked part of the homeowners insurance policy. It pays when you, family members that live with you, or your pets are responsible for injury to others or damage to their property. it also covers legal fees. Note the policy's liability limit. Evaluate your financial portfolio. It may be time to consider increasing the liability coverage limit or securing an umbrella policy to protect your assets adequately. Let the insurer know if there is a trampoline, swimming pool, or home business on-premises. Not sharing this information may jeopardize coverage.