What is Contents Coverage Insurance?

A house owner’s insurance can cover property against various damages. However, this insurance doesn’t provide coverage for the contents inside the house. In such an instance, a contents coverage policy comes in handy for property owners. Any house owner or tenant can use this type of insurance to protect their precious belongings in case of a mishap or theft.

Many homeowners are under the impression that their comprehensive policy covers everything under the roof. However, it does not take the exact value of each of your belongings into account. That is where “contents coverage” comes into play. Keep on reading to understand what it is and why you need it.

If you’re already familiar with this type of coverage and would like to save some time, feel free to check out this site — you can start comparing some of the best content coverage insurance quotes in Alberta immediately.

What is Contents Coverage Insurance in Canada?

Contents coverage insurance guarantees its holder’s specific coverage on any of their belongings for which they get insurance. For example, if you own a vintage watch worth $10,000, the regular home insurance or renters insurance will not cover the entire cost of the object but would instead calculate it as part of the common belongings.

In such scenarios, individuals must get content coverage insurance on valuable items that hold more value than insurance coverage. It will guarantee them that they get the entire value of their belongings in case of any loss or damage.

There can be many unforeseen damages or losses that an individual can suffer, including theft, fire, loss from the negligence of oneself or a third party, and much more. In such cases, it is pertinent to get content coverage insurance to stay secured, as it provides an extra layer of security to your unique and precious belongings.

Benefits of Contents Coverage Insurance

The benefits of content coverage insurance are numbered but integral to home insurance. Some of the key benefits are:

Get Insurance for Almost Everything

The insurance provides coverage for almost all individual belongings, so they do not fear losing anything. In addition, it provides coverage of materials that are present at home and certain items that are away from home — for example, jewelry.

You can give the insurer a list of portable goods and equipment to get coverage on such products even if they are not present at home. However, the losses and damage to any goods that a guest may have bought onto the property will not get coverage (unless mentioned in the policy).

Benefit For Renters Too

If you are a renter, then this policy is a must-have for you. Since it is not your property, it is prudent to protect your valuable belongings with suitable insurance coverage. It’s because, in case of an unfortunate event such as theft or fire, you’ll be liable to bear all the expenses. However, the home and any damage to its structure in such scenarios are in the scope of the property owner and not the tenant.

Now, suppose you avail contents insurance as a renter. In that case, you can be at peace since your insurer will bear the expenses incurred for your belongings in case of a mishap.  Any form of damage like fire, loss of property, burst pipes, water backup damage, theft, vandalism, etc., are all covered under the contents insurance.

Wide Ambit of Coverage

The contents coverage is not limited to specific items. One can claim insurance on anything they own, starting from branded shoes to a toothbrush.

Get Coverage While Moving Items

The insurance not only gives coverage inside the home but also in cases when the belongings are being moved. Suppose any damage occurs for any reason other than the fact that the movers were responsible for it. In that case, the insurance will provide the claimed amount for it.

What Is Covered Under Contents Coverage Insurance?

You would be surprised by the vast amount of items that can be included under the content coverage insurance. But the fact is the insurance company only needs a comprehensive understanding of the amount of content you own and its value.

If you own something, it can be included for content coverage insurance as a rule of thumb. A distinct look for such things can be listed as:

• Expensive and high-end clothes, shoe collection, coats, sweaters, and hats
• Expensive books like high-end magazines, academics, ancient books
• Electronics of all kinds like computers, laptops, music systems, DVDs, USBs, hard drives, Bluetooth speakers, cellphones, gaming rigs
• Heavy-duty appliances like washing machines, dryers, microwaves, toasters, ovens, HVAC
• Kitchen utensils and wares like spoons and forks, silverware, liquor collection, spices and oil, wine glasses and coffee mugs
• Furniture and other supplies like a chair, desk, cabinets, sofa, dining table, wardrobe, bed, mattress, bedside tables
• Jewelry, souvenirs, trophies
• Bathroom products like a hairdryer, straightener, shaving kit, electric razor, cleaning products, shower curtain, bathroom mat, and so on

The list is not exhaustive in any way and can include as much more or less (depending on the homeowner’s personal preferences).

What Are The Insurance Limits For Contents Coverage?

‘Contents limit’ is an important term in home insurance claims. It is the maximum amount of money you can claim in case of damage to specific items or all items insured. For example, your smart TV can be worth $10,000. Still, the insurance limits its coverage to $2,500 only. Regardless of the damage to your monitor, you would only get $2,500.

But one can also insure individual items to their original value to claim the entire amount in case of any damage; this is known as “scheduling”. So, if you schedule your smart TV, you can claim the whole $10,000.

Endnote

It is essential to include content coverage insurance in your home insurance policy. Home insurance only protects the house and its structure. The content inside your home should also be adequately protected. Talk to an insurance expert if you are not sure which policy to pick. Make sure you include expensive items in the coverage list. Compare various insurance providers before choosing a policy.