Content insurance is very similar to homeowners insurance, but it covers the contents of a home or building and not the building itself. It can be purchased with homeowners insurance or as a standalone police. It is recommended for renters or other persons that do not own the building or house they are living in.
How content insurance works
Content insurance protects the policy holder against damage, loss, or sometimes theft of personal possessions. Some policies allow for outbuildings to be included in the policy as well. It does not cover any damage or loss to the building, however. Policies vary, but it might include protection against loss or damage that occurs outside of the home as well.
Home contents insurance works by totaling the sum of the value of all items that will be insured. You will need to provide a detailed list of all major items in your home that you are insuring. Most policies will only insure up to set amount; any amount over that will have to be declared and possibly insured separately. The value of your contents for insurance purposes is based on the cost or replacing your items. Unfortunately, there is no sentimental value for contents insurance.
Making records of your valuables
You can determine the value of your contents by cataloging your possessions. It is a good idea to do this for your own records, but it is essential to do this for the insurance policy. The most popular method of cataloging items is to take video footage or use a camera to take pictures of each room. It’s important to catalog your items with a current video or photos each year when you renew your policy. Items purchased in the last year may not be included if you do not have proof of ownership. Most items will depreciate over time, but some items such as jewelry and antiques may increase in value. Be sure to get an accurate value on these items when renewing your policy.