How to choose the right home and contents insurance

To choose the right home and contents policy you need to understand what each agent has to offer. You always need to compare the cost of the premiums and the details of the policy. Have a list of all your possessions and break them down into categories. Itemize each item along with what the value of the item is. This not only helps when looking for a good policy, but it will help if you ever must file a claim.

5 home insurance sections

There are 5 main sections within a home insurance policy, including contents:

Property Damage

There are a couple of ways that damage to your property can occur. Natural disasters are probably the most common. Windstorms, tornados, earthquakes, mud slides, floods, hurricanes, etc. can damage your home to the point of you needing to find a temporary place to stay. A good policy will not only cover the cost of the repairs but will also help cover costs of relocating for a short time. Contractors, family, friends, or even strangers can also cause harm to your home, or the outbuildings included on your policy.

Liability Claims

The rise of lawsuits due to injury makes it necessary to carry liability insurance. Damages can be expensive due to hospital visits that may occur from injuries that someone could sustain while on your property. On top of that the courts may award pain and suffering amounts that would normally break your pocketbook. This coverage will help with those costs. Analyze how often people come to your house, and how many. The more visitors you get, the higher your coverage should be.

Personal Belongings

Property policies do not cover your possessions, so you need to check this clause. The coverage will start out with a set amount of coverage for a specific price. If you made an itemized list and added all the net worth together you will know if you need to increase, or decrease, the amounts. Check your home contents insurance to see what it covers because you may need to add extra coverage for specific items, such as expensive jewelry or collections.

Theft

Whether someone breaks into your house, or visitors decide to help themselves, theft coverage will help with replacing an item. Once again, this coverage, and how much you need, depends upon how often people come over, and who comes over.

Lenders

Banks and lending agencies will require you to have set minimum amounts of house insurance. If you have either one of these monetary issues, then you can start from this point and adjust up if you need to. You may find that your coverage is higher than needed, but if it is the set amount then you will have to deal with it.

Home and contents policies are based off pre-set numbers of each individual company. You need to read through the policy and make changes as needed. When it comes to your possessions you will not be able to have the correct coverage unless you have an itemized list.