In addition to covering your home and detached structures, your homeowner’s insurance
also includes compensation for theft of or damage to your personal
property. Keep in mind that every homeowner’s insurance policy is
different.
Because every single homeowner’s policy is
unique, you need to know what your policy’s coverage limit is. The
average coverage for personal items in the typical homeowner’s insurance policy
usually ranges from 50 to 75 percent of the price your home is insured
for, depending on your insurance company. Confused? Don’t fret.
In a nutshell, if your house is insured for
$450,000, your personal belongings should automatically be covered for
between $225,000 (50 percent) and $337,500 (75 percent). Again, however, your
policy may be different. This is a very important detail, so be sure to
check your policy!
In the end, it is essential to know what
you’re covered for because each homeowner’s insurance policy is
different. You need to know what yours limits or excludes.
Is your homeowner’s insurance policy
up-to-date? (Some policies automatically update your home’s current
value. Does yours?) While it is easy to let that dust settle over your
policy from year to year, keep in mind that putting it aside could cost
you much more in the end. Your homeowner’s insurance policy may make
heavy reading, but it will be even more burdensome should you not know
what is covered in it.
