Content Insurance: Set the Right Amount

When looking at a home insurance policy, you always come across the term “contents.” Ah, the technical jargon…

We often wonder: what exactly do we mean by content? Is it just my appliances, my couch, and my bed? How does their value affect my home insurance? Do they all need to be covered?

Here are some of the questions our experts will address. In the following lines, get familiar with its definition and the best practices to better protect yourself!

What is contents insurance?

As you read above, contents are part of your home insurance policy. In short, they are defined as anything that has monetary value and can be moved from one home to another, such as your:

• Furniture
  
• Clothing
  
• Jewelry
  
• Laptop
  
• Decorative items
  
• Food and kitchenware
  

These are just a few examples of personal belongings. But the most important thing to remember is that these items must be covered with the right amount. And determining that amount is not as tricky as you might think.

Does the value of contents affect the cost of home insurance?

Yes. It’s the same principle as with anything in insurance: we assess the risk.

Logically, it is riskier for an insurer to cover you if you own many items (and therefore have a higher value). For this reason, the cost of your premium increases according to the value of your contents insurance.

And beware! Failing to provide information — such as an accurate value of your belongings — to your insurer is a “strategy” that’s highly questionable. Contrary to what some might think, it could end up costing you much more than the cost of your premium.

Ultimately, the important thing is that you are covered for the correct value of your belongings so you can return to normal quickly in the event of a claim. Fortunately, your broker is there to help you with that. To find the right amount for your home insurance, we also have plenty of tips.

How to determine the amount of coverage you need

Step 1: Inventory of your belongings

Take a pen and paper (or your phone): it’s time to inventory your personal belongings. This task is essential to determine their total value, and most importantly, to make sure nothing is forgotten!

This exercise will make you realize just how many things you actually own. The total value adds up quickly when you take the time to create a comprehensive list of your possessions.

Bonus: Inventorying your belongings will greatly simplify any potential claims process after incidents (theft, water damage, fire, etc.). This will certainly be a question asked: What was damaged?

Now that you’re convinced of the importance of inventorying your belongings, it’s your turn to get started.

One room at a time
The bedrooms, the kitchen, the bathroom, the basement… Every room in your house needs to be reviewed. The more information you gather, the better. Be sure to note details such as: the purchase year, the brand, the original price, etc.

The real-time value
It’s advisable to estimate the replacement value of your belongings, since in the overwhelming majority of cases, your insurer will reimburse you for your items at their replacement value. For some items, like your sectional sofa bought in 2019 but still trendy, this will be easy. The insurer will replace it with a new and equivalent one on the market. However, for certain items, like jewelry or collectibles, you may face a bit more difficulty.

A list to keep safe
Keep one copy for yourself and another one in a safe place outside your home. Some financial institutions offer safe deposit boxes for this purpose. Enhance this list with supporting evidence: certificates of authenticity, invoices, photos, etc. The stronger your case, the easier it will be to claim in case of a loss. Think of yourself as a small investigator for your belongings—play the game!

Step 2: Special limitations or specific coverage
When finalizing your policy with your broker, you can choose the coverage amount for your personal belongings.

Special limitations
Various personal belongings are subject to a payable limitation in a home insurance contract. Most contracts will limit amounts for bicycles, collections, cash, and jewelry, to name just a few of the most common. However, there is a way to address this payable limit.

Specific coverages
To fully cover the full value of your precious items, it’s advisable to obtain specific insurance that will cover, for a few extra dollars, the full value of your belongings. Sometimes even without a deductible! It’s something to keep in mind, and to ensure you don’t forget, be sure to discuss it with your broker.

Moving Forward

Home contents insurance is no longer a headache for you? That’s great, because this element is essential in your efforts to find the best-priced home insurance.

Indeed, with your inventory of belongings in hand and the right practices in mind, you’re maximizing your chances of finding the ideal product.

And if this step feels like too much in your busy schedule, our brokers take care of everything for you. From comparing different offers to following up on your file, they’re here to manage everything from A to Z.

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