Personal Property Insurance - Guarding Your Property

Homeowner's insurance policies provide the value of the structure. It's fairly simple to determine what the amount should be for that house, but how do you know for those who have sufficient coverage on your personal property? Here are a few tips to make sure your assets are properly protected because of your insurance policy.

Know your coverage

You have to know you have sufficient coverage. Most insurance companies determine the private property (possessions, belongings, or contents) coverage depending on a percentage of the amount for which your home is covered. This percentage typically ranges in between 50% and 75%. So, if you possess a home insured for $200, 000, and you've contents coverage at 50% of your framework value, you would be insured for as much as $100, 000 for all of your individual property.

That sounds like a lot, but don't believe about what it's worth today, think by what it would cost to replace each product. Is this coverage enough? Think about your sofa that could be 4 years old. You'd normally say, "That's not really worth anything. " It might not be in a garage sale, but what would you need to pay to replace it? Always think when it comes to replacement, because those are the funds you will need to get back to where you were prior to the loss. Consider what you own in consumer electronics, furniture, appliances, decorative items... the list continues and can add up quickly.

Have a house inventory

The best way to know what your own insurance coverage amount should be is to possess a home inventory. By listing all of your individual property, you'll have a much better concept of your coverage requirements. Don't forget the storage, out buildings, closets, and the attic. This appears like a long, detailed process. It is, but really worth it. If you don't want to do-it-yourself, there are many certified home and business inventory companies who'll do it for you.

Know your plan limits

Another key point to ensure your assets are protected would be to know what your policy limits are. Homeowners policies have limits for several items such as jewelry, collectibles, weapons, as well as silver. These limits are normally far below what you will need to recover properly. For example, some policies possess a limit of $3, 000 for jewelry, and several policies are much lower than that quantity. Without a rider, no matter how much your policy is, these items are restricted to the quantity of the limit. These special categories of personal property are where lots of people I know have lost more than $50, 000 simply because they didn't know they needed a rider.

Safeguard your assets by understanding your policy, the way the amount is determined, and have an inventory to find out if your coverage is sufficient and what items will require riders.

Cindy Hartman is President of Hartman Stock. Visit http://hartmaninventory.com to learn the variety of causes of a personal property inventory. She is additionally owner of Nationwide Inventory Professionals, an stock business package and licensing agreement. Start and grow your company with their professional assistance.