Content coverage is a complex element of your Home Insurance Policy. Do you know what you are covered for if disaster strikes?
Content coverage is an element of your home insurance that is normally generalized due to the nature of the coverage. It should be close to the value of everything you own in your home. This includes clothing, furniture, personal belongings, appliances etc…
It is difficult to put a value on every single item you own in your home. This is why it’s so common to have issues with this section of your policy when a loss happens. Many times, homeowners will continue to resign their home insurance year after year. However, if they have been accumulating more personal belongings or upgrading items in their home like appliances, furniture and additional personal items this will not reflect the value accurately. If this is the case and a loss does occur after 10 years of upgrading your home and belongings, your content coverage will not be reflective.
Each insurance company processes content claims and coverage differently. It’s important to discuss your specific coverage with your broker or agent to understand exactly what is covered and to what value and percentage. Some policies have a per item limit. Each individual and household varies widely based on the items they have in their home. This is not a section of your insurance you want to skim over lightly.
Other cases we see of content coverage issues is when the homeowner has a workshop of shorts within their home. If they are a craftsman or jewelry maker or build/create anything physical, this will not be included in your basic content coverage. If a furniture maker has a fire at their home and their workshop is damaged, they must have a high enough content coverage or separate insurance to protect the value of the damaged items.
Content coverage is a tricky part of your home insurance because of the challenge to ensure it is accurate. One recommendation we give homeowners is to take a video annually of your home. This includes opening closets, storage areas, your garage and every room in your home. This will act as proof of content if a total loss situation ever occurs. It can also help your insurance broker or agent estimate the value of your content more accurately.
*Disclaimer* Things like fine jewelry and art normally have to be insured separately if they are of significant value. Be sure to look into this if you own expensive pieces of jewelry or collections of art.