Home Contents Insurance - Is It Worth It?

We’ve all heard the saying: “one man’s junk is another man’s treasure.” When dealing with the contents of our homes, this saying expresses what is commonly known as “sentimental value.” Particular items may be of no value to anyone except us. These are the priceless items that your agent has to place a monetary value on. In the event that certain items in your home are damaged, lost, or even stolen, home contents insurance will provide protection. Some examples of the type of home contents to be insured include jewelry, guns, antiques, collectibles, or other heirlooms.

You should not ignore content insurance. Everyone has some degree of personal possessions. When you consider replacement costs, it may be greater than you imagine. It is well worth it to have sufficient coverage versus risking the loss of possessions that you and your family value. You will have heightened piece of mind in knowing that your valuables are protected.

Sentimental Value And Replacement Value

Basically, content insurance is not going to replace sentimental value. For example, something that has been handed down through your family would be considered irreplaceable. However, contents insurance will give you a piece of mind by suppressing the monetary loss that you have suffered. While the replacement may never substitute the original, you may still recover some value or sentiment that you had with the original. If you are asking yourself whether home content insurance is worth it, consider how you value these items. Can you live with the risk of not having them insured? Also, consider that content insurance should be reevaluated on a yearly basis. A disparity may develop regarding their replacement value. For example, certain jewelry or collectibles may increase in value. Another possibility is that other items may depreciate compared to when you originally purchased them.

A lot of homeowners fail to consider that carpets, televisions and computers can also be construed as home contents. Yet, these are some of the typical items to be damaged during a catastrophic loss. Considering that the cost of insuring home contents is relatively inexpensive, it is well worth the investment to carry coverage.

One good method to use in evaluating whether home contents insurance is worth it is to take a walk through your home. As you do so, reminisce and calculate the actual cost of replacing those precious items. You may be surprised at what you have actually amassed over the years. You may also discover that you have been underinsured. It’s also a good idea to begin an inventory of your home contents. Walking around your home with video camera is a good method of preserving information in the event of claim.

If you think that home content insurance is not worth the cost, consider whether you can afford to replace the items after a fire or other catastrophic loss.

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