What Contents Does My Home Insurance Policy Cover?

One of the most common types of insurance, Janis-Shunta Insurance of Muskegon, MI wants you to understand homeowners’ insurance and what it does. Most people understand that it helps repair their home when it gets damaged by a storm or fire. They also understand that it protects them by paying for a visitor’s medical treatment for injuries if your dog bites them. Few people understand the contents portion of the policy though.

The contents section of a homeowners’ policy covers every piece of personal property in your home. Note the personal property designation. That means that your home business equipment is not covered. Neither is the business equipment of anyone visiting or your inventory you keep in the garage.

Your contents coverage usually equals between ten to 20 percent of the value of your home’s value as it’s insured. That may not cover everything you own that you lose. Some items, like jewelry, have a limit of $1,500 coverage. Chances are your furniture alone would eat up your contents coverage. Then you are left with your clothes, electronics and other jewelry to replace.

That’s why insurance companies let you add additional coverage for contents to your policy. You can insure your personal property at a higher rate than the standard coverage. You can increase it to 50 to 70 percent. Choose replacement value rather than actual cash value so that the insurance will pay for a new item at the cost you’d have to pay to replace it.

Call or visit Janis-Shunta Insurance of Muskegon, MI to learn more about how you can protect your belongings. We can help you make sure you have the coverage to protect your personal property.