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Do I Need Personal Contents Coverage?

Remember the tornado scene on The Wizard of Oz, when Dorothy saw her neighbor flying by on her rocking chair? While far-fetched, it’s a good reminder that when it comes to natural disasters, we should also protect what’s inside our homes.

Look around your home. Is it furnished? Do you have electronics, artwork, and appliances? Do you want to keep having them? If you live in a high-risk area for flooding, check both your homeowner’s insurance policy and flood insurance policies to verify whether your personal belongings would be covered in case of an emergency.

Common Caveats

In addition to checking for a mention of personal contents coverage, read the wording closely. Just as with car insurance differentiating between collision and comprehensive coverage, homeowners’ insurance also lists the specific events that would trigger their assistance. It is rare for a policy to cover burglary, fire, ordinary wear and tear, floods, AND natural disasters. If it only lists one or two items, and your property is damaged due to something else, you will have to fork over money from your own pocket to replace those items.

Types of Personal Contents Coverage

Once you’ve established that your personal belongings are protected, verify whether you are insured for the actual cash value or replacement costs. Since the second type pays for brand new items, the cost of this coverage will be more expensive. And one again, as with car insurance, the higher your deductible, the lower your monthly insurance costs will be.

Don’t wait until strong winds are battering at your windows to think about this stuff. Experiencing a natural disaster is unpleasant enough without having to worry of whether you’ll have to replace your belongings out of pocket. Do your homework now.

If you need further assistance to determine whether you really need flood insurance, contact National Flood Experts for a free evaluation.

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