When people hear the words insurance, they think of protecting their homes from natural disasters and making sure that their properties will not be lost. However, there are a lot of other types of insurance that fall into this category. In fact, insurance is an industry with over 1.2 million jobs. It is widely recognized as an institution that provides support in cases where the unexpected happens. There are three main reasons for individuals to have a home or other insurance policies: protecting their assets, making sure that their families are taken care of in case of an accident and making sure that in the event of a disaster, financial loss and personal injury are covered by all insurance policies.
Contents insurance, also known as property insurance or dwelling insurance, covers the cost of replacing or repairing your family’s personal belongings and furnishings, including furniture, curtains, lamps, white goods, piano, computer and other electronic devices, clothes, jewelry, sports equipment and toys. When an insured person loses something of value due to theft, fire or another natural disaster, then he or she can make a claim for it under the contents coverage. This type of coverage typically protects items that are large, expensive or sentimental. Examples of items that would require this type of coverage are jewelry, electronic equipment, antiques, artworks, appliances, real estate, vehicles and the like.
Contents insurance policies vary, depending on the insurer, but most include coverage for some common items. Some examples of contents that can be covered under a home contents policy are the following: clothing, electronics, antiques, jewelry, boats, automobiles and the like. However, there are many others that may be covered as well. It just depends on the policy, coverage and premium.
Business premises insurance offers protection in case your company has a specific business address. Usually the policy covers the building itself, along with any additional interior furnishings. The policy covers any liability or lawsuits that may arise from injury that occurs on your business premises or any injuries that occur by products of your business. This type of coverage is important if you use any of your company’s facilities or supplies in your capacity. You will want to make sure your employees, equipment and supplies are covered as they are used on your business premises.
Contents insurance policies do not usually cover your personal possessions such as jewelry, or electronics and other high-tech items. It is a good idea to check with the insurer regarding what is covered in your policy. Most insurers will provide a list of exclusions that could apply. However, many insurers recognize that in the business world, sometimes the personal stuff is just irreplaceable. They usually will allow a certain amount to be compensated for these irreplaceable items.
Home contents insurance policy covers the possessions of the insured while the home is used as a residence. If there is a specified period during which the home is unoccupied, this type of policy will replace the possessions lost to a fire, flood, theft or similar incident, with new replacements that reflect their value. Replacement value is usually expressed as the retail cost at the time of loss. This does not necessarily mean the retail price of the item at the time of loss.
Some insurers recognize that loss recovery is very expensive. They usually offer an underinsurance replacement value in their policies. If there is a loss that is not covered by a standard policy, the insurer will pay you the difference. In this instance, you would have actually received less coverage than you would have with a standard policy, but it would have been adequate to recover your loss. The insurer may also choose to give you full reimbursement for contents that were destroyed.
When it comes to inventory, you can usually save money by taking advantage of some of the discounts available to you. If you have a standard inventory and a loss doesn’t occur, the value of your goods would be covered. However, if you consider the total worth of all of your goods, then you may find that it would cost more to replace them than it would to replace them with brand new contents. If you are uncertain about whether the value of your inventory would be more than the cost to replace it with a brand new contents, you can request that your insurer include an inventory value endorsement in your policy. There will usually be a default dollar amount agreed upon, but you can adjust it to your liking. Many insurers make this part of a contents policy mandatory, and you should be aware of it.
