Cheap Home Contents Insurance

Whether you've just purchased a new home, or you're simply renting an apartment, we all own relatively expensive items that we would wish to protect by purchasing cheap home contents insurance. Whenever you own a home and purchase home insurance, your policy actually provides coverage for any loss or damage to the home itself. Therefore, you could say that a basic home insurance policy will cover the costs to replace the house should it be destroyed or demolished.

You will generally find that a basic home insurance policy will cover household contents to an extent, although there may not be enough coverage for your rather more expensive items. This is where many homeowners opt for additional add-ons to their home insurance policy in order to cover specific items in their home. This may include items such as expensive jewellery, expensive electronic equipment, family heirlooms and priceless antiques and collectables.

If you're able to specifically insure these items, you are safe in the knowledge that if the contents of your home are destroyed or stolen, the costs of these extremely expensive items will still be covered. You may even find that certain items are impossible to replace, but at least you'll have some form of financial compensation for your loss.

A basic home insurance policy will generally cover the contents of your home to a maximum of 40% of the value that you have insured your home for. Therefore, if as an example your home is insured for $300,000, you can expect your home contents to be insured for $120,000. However, it must be said that this is merely an estimate, and therefore it is vital important that you check your specific policy to see what exactly is offered.

When looking for cheap home contents insurance, you should always make sure that you do not over insure. This may involve taking an inventory of the most expensive items that you own, and then adding the cost of replacing these items with new items at today's prices. It is recommended that you add a buffer of approximately 10% to the total. The value that you end up with should be the bare minimum amount of coverage that you require from a home contents insurance policy.

If you do not specifically wish to spend a lot of money for your home contents insurance, you may wish to consider whether a basic home insurance policy provides sufficient coverage for your contents. You may often find that the overall coverage provided is slightly less than the value of your contents, although this may be an acceptable risk to take.

Cheap home contents insurance is particularly important to renters who unfortunately often forget to insure their possessions when they rent a home or apartment. If you are a renter then you should be aware that your landlord's homeowner insurance policy will generally only cover the building itself. Therefore, you are entirely responsible for insuring your own possessions with a suitable home contents insurance policy. In fact, this is specifically what renters insurance is, and the policies target people who do not own a home, but still require protection for their valuables.

In order to determine the level of home contents insurance coverage that you require you may wish to complete the following steps:

  • Initially go through every single room in your house with a video recorder and record every single object that you own
  • This should include you scanning every table, every shelf and the contents of every drawer and cabinet
  • When you come across an item that you believe is worth a lot of money, try and estimate its value and make a note of it in a notepad
  • Once you have finished recording you should sit back and play back the video with your notepad in hand. As you see different items on the screen, write down estimated replacement values
  • Once it has been completed simply add up all the estimated values and this should give you an idea of the total coverage that you require

When you are ready to speak to an insurance agent for a quote you should initially ask the maximum amount of coverage that is provided in their cheapest policy. If you find that the coverage of the cheapest home contents insurance policy is fairly close to your total estimate, then it is advisable to go with this policy. If you find that this policy does not provide enough coverage to protect your most expensive items, you should then ask whether they provide supplemental insurance for these items, and what additional costs you can expect to pay.

In order to find cheap home contents insurance you may wish to initially start your search online. There are many companies that offer discounts simply through purchasing a policy via the Internet. This will typically mean that a company can save on many administrative costs that are associated with doing business offline. You may also wish to see if an insurer that you currently have other insurance products with is able to offer you a suitable discount for remaining loyal to them.

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