Content insurance protects your personal property when you rent an apartment, a condominium or a home. The owner of the property is responsible for insuring the building itself, as well as any appliances or fixtures that are provided to you as a renter. But, unless you buy contents or renter's insurance, you will not have protection for damages or loss of your furniture, clothing and electronics - basically everything you own!
What will Content Insurance cover?
As a renter, you need coverage for your personal property, and liability protection in case you're responsible for injury to someone else. Content insurance pays for damage to, or the loss of, your personal possessions that are located within your residence. Some policies will also cover your personal possessions, such as a laptop or golf clubs that you might have in your car. A renter's policy will also include liability coverage for injuries. For example, if your dog bites your neighbor, you might need liability coverage.
Replacing your clothing or furniture after a fire or flood can be extremely expensive. If you have jewelry, guns or valuable coins, be sure that the amount of coverage you purchase will cover your important property.
Saving Money on Content Insurance
- Buy only as much coverage as you really need. Content coverage is for the actual replacement cost or actual cash value of your property, not what you think it is worth. For example, a "priceless" family heirloom may have deep sentimental value, but your insurance will only pay for the cost to repair or replace it. Unfortunately, not all items can be replaced.
- Consider higher deductibles. If you are willing to accept responsibility for a larger part of each loss, your insurance premium will be lower.
- Reduce your risk. A sprinkler system or alarm system will reduce rates for most policies. And, if you have a dog that's considered a "dangerous breed" be aware that you may pay more.
- Ask for a discount on your auto insurance. Many auto insurers will give you a 5 or 10% discount on your car insurance when you insure your home or apartment with them. It's worth it to check!
Complete a Home Inventory today
You'll be surprised what you have. A home inventory is the best way to document your personal property. Digital pictures or a quick video of each room and closet will help you get the most from your insurance policy if you ever have a loss.