When purchasing a standard homeowner insurance policy, you are getting coverage for your home and your personal belongings. Many other great options are also standard, like coverage for other structures such as sheds and detached garages, liability coverage if someone is hurt on your property, and additional living expense coverage if you are displaced for a time after a covered peril.
However, if we are honest, most of us are mainly concerned with repairing our homes and replacing our lost personal belongings after the unthinkable happens. No matter your priorities after a covered loss to your home, we at Great Michigan Insurance in Marshall, MI, are here to assist you.
Coverage for your Personal Belongings
The value of your personal belongings on your home insurance policy depends on the items’ value and how much coverage you purchased when insuring your home. Insurance companies typically insure your contents for up to 70% of your home insurance coverage amount. For instance, if your house is insured for $500,000, then you should receive coverage for your belongings up to $350,000.
To decide how much coverage you need for your content, you should take inventory of what you have. Remember to write down serial numbers, makes, models, and purchase years for your costly items. It wouldn’t hurt to include photos, receipts, and appraisal amounts with your inventory as well.
From there, speak to a licensed insurance professional about how the compensation works. Most insurance agencies compensate you based on the items’ actual cash value or replacement cost value. This is something you decide when purchasing your policy and greatly impacts your insurance premiums. Actual cash value is considered when you buy an item and how the value has depreciated over time. Replacement cost, which costs more in premium, replaces your personal items based on today’s price for the same or similar items.
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For more information about contents coverage on your home insurance policy, call Great Michigan Insurance in Marshall, MI, at (269) 789-0909.