Your home is more than just four walls, it’s filled with the possessions that make it uniquely yours. From furniture and electronics to clothing and collectibles, these belongings hold both financial and sentimental value. That’s where contents insurance, also known as personal property coverage, comes in. It helps protect your possessions in case of unexpected events like theft, fire, or water damage.
Contents insurance is designed to cover the repair or replacement of your personal belongings if they’re lost or damaged due to covered risks. This coverage applies whether the items are inside your home or temporarily outside of it, such as in your vehicle or while traveling.
If someone broke into your vehicle and stole your camera gear and fishing tackle, that would be covered under your homes contents coverage rather than your auto insurance coverage.
Contents insurance covers a wide range of personal belongings, including:
If it isn't nailed down, there is a good chance it falls under contents coverage. Removable appliances covered under contents insurance generally include: washers, dryers, refrigerators, ovens, microwaves, dishwashers, portable air conditioning units, and other small appliances. If you are renting your home or apartment, it is a good idea to maintain at least some level of contents coverage on the property to cover your appliances in the event of a total loss.
Coverage varies by carrier, but generally, contents coverage will include some variation of:
*Wind, hail, and water damage are contingent on having coverage for those events. This information will be listed on your property insurance policy.
While contents insurance is comprehensive, there are some exclusions:
The amount of coverage you need depends on the total value of your possessions. A common rule of thumb is that contents coverage should be about 50% to 70% of your home’s insured value. For example, if your home is insured for $300,000, your personal belongings should be covered for $150,000 to $210,000.
While $210,000 may seem high for your personal belongings, consider the cost to replace literally everything you own if there were to be a total loss. All of your clothes, furniture, appliances, tools, equipment, electronics, etc.
There are two types of contents coverage:
Replacement cost coverage usually costs more but provides better financial protection. Talk to your agent or broker for the type of coverage you're looking for.
If you own expensive items like fine jewelry, artwork, or rare collectibles, consider purchasing additional coverage to ensure full protection. Many policies set limits on payouts for these items, so a separate rider or floater policy may be necessary.
Renters can also benefit from contents insurance, typically as part of a tenant insurance policy. While your landlord’s insurance covers the building, it won’t cover your personal belongings. Tenant insurance also includes additional living expenses (ALE), which helps cover temporary housing costs if your rental becomes uninhabitable due to a covered event.
Contents insurance is an essential part of home insurance that provides peace of mind and financial protection. Whether you own or rent, ensuring your belongings are adequately covered can make all the difference in recovering from unexpected events.
For personalized advice on selecting the right contents coverage for your needs, speak with an insurance broker who can guide you through your options.
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