Do You Need Extra Contents Insurance?

Your renter’s insurance covers property damage and liability claims up to a limit, but what about your valued assets that aren’t covered? Whether you own items of more worth than your renter’s policy or you own unique items that are excluded from your policy, contents insurance may be the answer for you.

Extra contents insurance can be purchased to cover items such as custom-designed bicycles, golf carts, vintage cars, fine artwork, jewelry, musical instruments, fur coats, collectible coins, taxidermy and much more. Basically, contents insurance is designed to cover anything that is not already covered by your renter’s insurance.

When purchasing contents insurance, you have two coverage options to choose from:

  • Actual cash value: Covers your assets’ original value minus depreciation. This type of coverage is the cheaper option, but may not pay out enough money to fully replace a valuable if the current price has gone up.
  • Replacement value: Covers the actual cost of replacing items at current prices, even if they’ve appreciated. For example, if you purchased a diamond necklace for $1,000, but the current cost for a comparable piece is $2,500, this coverage offers adequate compensation to cover the new price

When applying for contents coverage, many insurance providers will require you have valuable items appraised. This allows you to buy enough coverage for the item(s) you want to protect. Another option is simply to buy a blanket policy to add another layer of general coverage in the event of a broad covered loss.

Your insurer may also ask that you create a home inventory, which is essentially a list of all of your valued possessions, their worth, manufacturer information, photographs and receipts for high-dollar items. This not only helps you purchase an adequate amount of contents coverage, but it also helps streamline the claims process by helping you determine exactly what was lost or damaged.

Your agent can evaluate your unique needs and shop for contents coverage on your behalf so you can rest assured that you and your assets are safe.

Have expensive items that need extra protection? Call Key City Insurance at (435) 656-8100 for more information on Victorville renter’s insurance.