How Home Contents Insurance Policies Work

All home contents insurance policies are based on the same type of principal. That is they provide insurance for losses to the contents of an individual’s home or apartment from being damaged, lost or in certain instances stolen. Home insurance policies are based on a variety of factors. These include the total amount being insured, scheduled items and any exclusions on the insurance policy. Home contents insurance policies do not provide insurance for property and liability only for possessions.

Home contents policies are based on the total amount or the sum of the possessions that are being insured. This means that the insurance company providing the policies will determine how much it will cost to replace these items in the event of a loss. What owners of home contents policies seem to forget is that they eventually replace old items are acquire new ones. When this happens the home contents policies will need to be updated to account for new and replaced items. If not the insured is in for a rude awakening when submitting a claim for a loss.

Certain valuable items can be scheduled on a home contents policy. What this means is that each item that is scheduled is itemized on the policy. This usually applies to items such as jewelry, but can include golf clubs, guns or any other item that has significant value. When insurers look at scheduled items such as jewelry they want to know if it is contained within a safe or any other protected device. This will have a direct effect on the cost to insure the item. Generally, the more protected an item is the less it will cost to insure, because it will be harder to damage or steal.

All home contents policies come with a variety of exclusions. These include a cause of loss by flooding, mold, bacteria and a host of others that can be listed on a policy. It is always a good idea for individuals with a home contents policies to review any and all exclusions that apply and then plan for any eventual loss accordingly. Insurers include exclusions on policies for a number or reasons. One being is that don’t want to insure for neglect on the part of the policy owner and for any losses that can be prevented.

Home contents insurance means just that. It is insurance for the contents or possessions of an individual in their home or apartment. If an individual owns their own home they would be benefit far more from having some sort of personal property policy. A personal property policy provides more protection than just contents. If an individual is renting a home contents policy is all they will need because all they have is the contents they themselves provide for the apartment.