You purchased Atlanta home insurance to be an invisible financial safety net in case you have some sort of loss to your home. That house was a big investment, after all. But you might have this question floating in your mind: does home insurance cover personal belongings? We’re going to answer that question, but we’re also going to explain how much insurance you need for your personal belongings and how to insure your belongings.
Are personal belongings covered by Atlanta home insurance?
Yes. A typical Atlanta home insurance policy should pay to replace the contents of your home (such as your furniture, your electronics, your clothes, and so on) if they are destroyed by a covered loss. Your policy should have a certain “limit” for personal belongings coverage. Home insurance is there for you – it’s got your back. (And if you’re looking for Atlanta home insurance quotes, we can help. Just fill out our online quote form or give us a call and we can help you get the insurance you need to protect your house.)
What losses are covered?
Well, that depends on your policy, which will outline the losses that are covered. However, some examples of losses that are usually covered by home insurance are:
- Storm damage
- Falling trees
- Some types of water damage (for example, water damage from a burst pipe)
Like we said, you really have to go over your policy carefully to understand exactly what is covered and what is not. There’s a lot of helpful stuff in your insurance policy. Admittedly, it might not be the most riveting read, but still – you’ve got to read your policy.
What losses aren’t covered?
Some losses are typically not covered by Atlanta home insurance. The following are excluded from most policies.
- Flooding: To protect your home against a flooding disaster, you would need flood insurance. You can purchase flood insurance from the NFIP through an agent, and you would have to make sure to include coverage for personal belongings in your flood insurance policy.
- Sump pump failure/Sewer backup: To be protected against losses stemming from a sewer backup or sump pump failure incident, you would have to add coverage for sewer backup to your policy.
- Jewelry: It’s not that home insurance excludes jewelry and other valuables, but usually policies offer a very limited amount of coverage for them. You may need to add extra coverage for your valuables.
These are just a few home insurance exclusions to be aware of. You need to spend some quality time with your policy to find out how certain losses are handled.
How much coverage do I need for personal belongings?
The next question is how much insurance you need for your personal property.
Taking a home inventory can help you find out how much coverage you would need to replace your belongings. A home inventory is basically a list of all the items in your home and their values. The easiest way to organize it is to break it down room by room.
Having a home inventory can also come in handy if you ever have to file a home insurance claim. It’ll be a lot easier to list the items that need to be replaced because you’ll have a prepared, detailed list of your belongings. Just make sure to keep your inventory somewhere safe – maybe consider a safe deposit box or Google Drive to ensure it doesn’t get destroyed if something happens to your home.
Pro tip: Pay extra attention to jewelry and other valuables. Like we said, you may need to add coverage for these things.
How should I insure my personal belongings?
You can insure your belongings for their Actual Cash Value or their Replacement Cost Value.
Actual Cash Value (ACV): If you insure your belongings for their ACV, your insurance company will reimburse you for the value of your belongings at the time of the loss (meaning the depreciated value.)
Replacement Cost Value: Replacement cost value does not take depreciation into account and can allow you to replace your belongings at today’s prices.
The bottom line is that you might want to insure your belongings for their replacement cost value to ensure that you receive enough reimbursement to replace your belongings at today’s prices.
So, that’s the scoop about home insurance and your personal belongings. While your home insurance should have coverage for your belongings, you have to read your policy to find out which losses are covered and which aren’t. Having a loss to your home could be a huge financial blow, but that’s why home insurance is there – to be your safety net.
To get started with some Atlanta home insurance quotes, you can fill out our quote form or give us a call today. Our team can help you find great coverage at a great rate. And we’ll help you make sure that your house and all of its contents are fully covered by insurance.