Whether you own or rent your home, it is important to make sure that you cover, not just the building you live in with insurance, but also the contents and possessions inside that belong to you.  This type of insurance is called contents Insurance, and it is one of the most valuable investments you can make outside of insuring your home itself. 

You may be wondering, “What does contents insurance cover?”  Well, consider that fire, flood, or theft can happen at any time to anyone at all.  The expenses of covering the damages of these events can be outrageous, and most building or homeowners insurances only cover the costs to repair the building itself.  When the renter or owner also has contents insurance, the possessions inside the home are also covered.

No two plans are alike, so costs can vary a lot.  As long as you pick a plan that is right for you, you can make sure all of your home’s contents are insured.  First, you have to ask your insurance agent, “What does contents insurance cover in your company?”  Many plans are very different.  Some cover only essentials needed to survive, like clothing and furniture.  Others will cover everything you own, including financial compensation and reimbursement for antique items and heirlooms, which cannot ever be replaced. 

While looking for contents insurance, remember that homeowners insurance is not the same thing.  Contents insurance is a type of home insurance, but usually a separate policy is needed to cover your belongings.  You should never assume that your current house insurance covers these costs without asking your agent “what does our contents insurance cover?”

Even outdoor items, such as gardens can sometimes be insured.  Many insurers consider a garden a room of sorts in your home, and most people want the contents of it insured as well.  A good plan will not only cover the plants, but also furniture and ornaments as well!  Yard structures, like sheds, are probably already covered in general homeowner’s insurance, but most other outdoor items are not, so make sure to add them in when looking for contents insurance.

Contents insurance comparison is easy on the internet, but make sure you look over results carefully and ask the agent “What does contents insurance cover if I go with your company?”  Just like other forms of insurance plans, the cheapest policies do not always provide good coverage.  In general, you get what you pay for with insurance, but also remember that the most expensive may not always be the best, either.  It is best to shop somewhere in the middle to start.  Also, look to see that your plan will cover the actual cost to replace items and not just the depreciated value of the things you own so that you do not have to replace your items with other used items.  Take your time as you compare quote and remember all the factors that are important to you, and you will find the plan that fits your needs.