Florida Home Insurance- Content Coverage

Content Coverage - What you Really should Know!

It is a proven fact that after a major loss, policyholders only remember about 40% of their personal property! That is 60% of their personal belongs that they can’t remember.

The items that are easily remembered are the items like TV’s, couches, stoves, coffee tables, dinning tables and beds. The harder things to remember, after they are gone, are the things you see and use everyday but never think about.

Do you know:
How many forks, how many spoons and how many knives you have?
How many pictures and picture frames you have in your house?
How many bath towels and bath rugs you own?
How many sheets and pillowcases you own?
How many dresses, shirts, pants, and shoes you own?

Why is this so important? Because, the insurance company will not pay for things you can’t remember. During a claim the insurance company depends on you to know what you lost.

The insurance company has no idea what you have in the way of content or property inside your home. After a loss, it is up to you to provide the insurance company a list of what you lost and the value.


Coverage and where you find it.

Your homeowners’ policy has coverage for your personal property or contents under the personal property section. Each company is different, but most companies give you a percentage of your dwelling coverage amount. For example, if your home is insured for $100,000 and your policy provides 50% on content, then you have $50,000 in content coverage. It would not show on the policy as 50% but as the amount of $50,000.

In Florida, home insurance companies can really differ in the percentage amount that they provide you. Some companies provide only 50%, while another will provide 60%. A few Florida companies provide up to 70% of the dwelling coverage. You should check your policy or with your agent to find out how much your policy provides.


Do you have enough coverage?

Most Florida homeowners are dramatically under insured when it comes to content coverage. They have no idea how much it would cost to replace their personal belongs. They think that their homeowner’s policy will cover it and never stop to figure out how much they really need.

Just because your agent or company told you that your personal property is covered, doesn’t mean the policy has enough coverage to cover all of it. You need to look at the amount of coverage you have.

For most people, the largest investment inside their home is their wardrobe. They don’t realize the cost to replace it. Just think how many dresses, skirts, shirts, pair of shoes, belts, purses, suits, pants, underwear garments, tee shirts, and all the other things we buy to wear, new and old. If they were all lost, you would have to replace them at today’s prices.

Standard rule of thumb, an average man’s wardrobe would cost $10,000 to $15,000 to replace. An average woman’s wardrobe would cost $12,000 to $22,000 to replace. A child would cost about $2,000 to $5,000 to replace their wardrobe.

Some companies will let you increase the amount of coverage, at an increase cost, while other companies won’t. You need to check with your agent or company to find out what you have and what you can do on your policy.


Do you know what you have?

Whether you are an established family with years of collecting or just starting out, it is up to you to know what you own. If an unfortunate occurrence such as a fire, theft or hurricane should happen, it is best for you to have an accurate and detailed inventory of your property.


A personal property inventory list will help the insurance company give you a more accurate replacement value for your personal property. It will also help you to remember the things that you own. When it is all gone, an inventory list is all you have to work with.


Make that Inventory List.

The first step is to plan the time to get an accurate inventory. Typically, working on the list over time is best. However, it is important to give yourself a deadline to complete it. There are many ways you can do it, but the important thing is that you do it.

One way to attack it is room by room. Go into each room; make a list of every thing in the room, item by item. Don’t forget the things like the sheets, pillows and pillowcases on the bed and in the linen closet.

It is always good, but not necessary, to take photos or video of each room, supporting your inventory list. Next, give an estimate of what it would cost to replace the items on your list. In making the estimate keep in mind that some things appreciate in value while others depreciate.



Jewelry and Clothes

Inventory jewelry and clothing different from room to room. Make an inventory list of these two categories by people.

example:
Sallie’s clothing
1-
2-


Next, give an estimate of what it would cost to replace the items on your list. In making the estimate keep in mind that some things appreciate in value while others depreciate.



Maintaining your list over the years.

After you spend the time to create an accurate inventory list, the hard part is over. Keeping it updated over future years is easy. Just pick an annual date, and every year update your inventory list. Pull your list out or up on the computer, and add or subtract the things that you acquired or gotten rid of over the past year.


Here are a few more tips when taking an inventory of your personal property:

· Keep sales receipts of big-ticket items. Attach them to your personal property
inventory list.

· Take video inventory or photographs of your personal property in addition to
your inventory list.

· List any serial #’s that may be on your personal property

· Engrave your own serial # into items that are of value

· Keep your personal property inventory list, along with photos and/or inventory
videos, in a safe place away from your home such as a bank lock box.
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