The landlord’s insurance does not cover your property and neither does your cohabitants’ insurance if you are living with another person. You ‘must’ have your own.
Finding the right insurance for the best price can be quite daunting. You should utilize an effective checklist where you list every contents insurance quote along with the benefits it offers. You also need to understand each and every coverage item so you know if it fits your needs.
Contents Coverage-This will be the actual level of insurance coverage you actually have as well as the upper limit the insurer pays if everything is lost in a fire or other disaster covered by the policy. The policies are called HO4 insurance policies and they cover 16 named perils.
1. Riot or Civil Commotion
2. Fire or lightning
5. Hail or windstorm
8. Vandalism or Malicious Mischief
10. Falling Objects
11. Volcanic Eruption
12. Weight of Ice, Snow, or Sleet
13. Sudden & Accidental, Cutting, Burning, Tearing Apart or Bulging
14. Accidental Overflow or Discharge of Water or Stream
16. Power surges
Deductible-The deductible is what you have to pay out of your pocket per claim. The larger the deductible, the cheaper your insurance coverage cost. Make sure you compare apples to apples when you are getting a contents insurance quote. While some company’s contents insurance quote might be lower, they also might have a larger deductible making it so you’re getting a lot less than the more expensive policy.
Replacement Cost-If there is a catastrophe which wipes out all your belongings, the insurance adjuster depreciates the items. If you have a five-year-old $800 refrigerator, the adjuster uses the price you paid and then deducts an amount for each year in use. You could end up getting as little as $100 toward the total claim. If you have replacement cost coverage on a policy, the adjustor applies the amount of money it costs to replace the item at the time of the loss, not the cost less depreciation. This makes a difference on the premium on a contents insurance quote.
Scheduled Personal Property-Most policies have limits on coverage for several things like furs, sporting equipment, jewelry, coin collections and art collections, for example. Should you own a particularly expensive item of jewelry or equipment, you’ll want to insure it to value by using a scheduled personal property rider. Be sure you have the different charges included as part of your contents insurance quote. It’s also possible to get yourself a scheduled personal floater that increases the coverage if you have many pieces, like a coin collection, of high value but no single coin more than a specified amount.
Liability-Each policy includes a liability section, coverage in the event someone sues you for injury at your home. Assess the amount when you get a contents insurance quote.
Computer Insurance-If you like all the bells and whistles, you might think about including extra coverage on your computer equipment.
Business Riders-Home based businesses face additional losses. If you’re business is in the fledgling stage or does not have much equipment or exposure, consider adding business merchandise coverage, incidental business liability or a home based business rider and be sure to compare the expense of the addition and coverage when you are getting a contents insurance quote.
Theft Coverage Protection Endorsement-Most policies limit the protection for theft. Add this rider to raise that limit. Note the amount of coverage provided when you are getting your quote.
Land and mine subsidence coverage, earthquake coverage, and sewer and drain back-up-These three additional insurance policy riders aren’t for every buyer. Land and mine subsidence coverage provides you with insurance if your home and contents slide down the side of a hill in a mud slide or disappears because the ground gave way from subterranean mining. Earthquake coverage and sewer and drain back up are self-explanatory.
Watercraft and Recreational Vehicle Endorsement– In the event you keep a boat or Rv in your backyard, some companies provide insurance coverage for them but others don’t and you require a rider. When you get a contents insurance quote, check to see if it’s included or if you need a rider.
Before you begin looking for a contents insurance quote, you should estimate how much insurance you need. Even if you lose $20,000 worth of items in a fire, if you only have $15,000 worth of coverage, that’s all the company pays. Make a video of all the items in your house and then make a listing of the values. If you choose replacement cost, estimate the cost of replacing an item not whatever you bought it for. Once you have decided on a total sum, you’re ready to get your quote and your policy.