Coverage for Personal Items and Belongings
In addition to covering your home and detached structures, your homeowner’s insurance also includes compensation for theft of or damage to your personal property. Keep in mind that every homeowner’s insurance policy is different.
Because every single homeowner’s policy is unique, you need to know what your policy’s coverage limit is. The average coverage for personal items in the typical homeowner’s insurance policy usually ranges from 50 to 75 percent of the price your home is insured for, depending on your insurance company. Confused? Don’t fret.
In a nutshell, if your house is insured for $450,000, your personal belongings should automatically be covered for between $225,000
(50 percent) and $337,500 (75 percent). Again, however, your policy may be different. This is a very important detail, so be sure to check your policy!
In the end, it is essential to know what you’re covered for because each homeowner’s insurance policy is different. You need to know what yours limits or excludes.
Is your homeowner’s insurance policy up-to-date? (Some policies automatically update your home’s current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner’s insurance policy may make heavy reading, but it will be even more burdensome should you not know what is covered in it.