A typical renters insurance policy covers property damage and liability claims up to a limit. However your precious belongings may not be covered. Contents insurance can help with that, especially if you possess items that are worth more than your renter’s policy or if you own rare items that are not included in your policy.
Extra contents insurance can be used to cover custom-created items like bicycles and musical instruments, as well as precious items like artwork, jewelry and collectible coins and more. Essentially, extra contents insurance will cover anything that is not originally covered in your renters insurance policy.
There are two basic coverage options for contents insurance to choose from:
- Replacement cost – this covers the actual cost of replacing the item, at current market value, regardless of whether it has appreciated. For example, if you had bought a piece of jewelry for $1000, and the present-day value is $2500, this coverage provides sufficient compensation to cover the new price.
- Actual cash value – this covers your item’s original value without depreciation. Although this option is generally cheaper, it may not be enough to completely replace the item if the existing market value has increased.
When getting contents coverage, insurance carriers will typically need you to appraise your precious items. This way, adequate coverage will be purchased for those items. There is an alternative option where you can purchase a blanket policy, adding another level of general coverage, if there is a case of a broad covered loss.
Creating a home inventory is another task your insurance carrier will ask you to complete. This is basically a list of your expensive belongings, their value, manufacturer information, photographs and receipts for especially high-dollar items. This helps you to get sufficient coverage and makes the claim process simpler.
As an independent, we can review your unique situation and help get you the best coverage by shopping around for you.
If you need coverage for your precious items, please don’t hesitate to give Key City Insurance a call at 801-840-9555 for Salt Lake City renters insurance.