Along with providing coverage for your Chicopee, Massachusetts house, your homeowners insurance policy likely also includes coverage for your personal possessions. Precisely what belongings are covered and how well they’re covered, however, will depend on the terms, conditions, and limits of your policy’s personal property coverage section. Here’s how to make sure your possessions are properly insured.
Are All of Your Possessions in Your Chicopee Home Covered by Your Homeowners Insurance Policy?
Check Your Homeowners Insurance’s Personal Property Coverage
First, you’ll want to see what type of personal property coverage your homeowners insurance policy provides. You likely have either actual cash value coverage or replacement value coverage, which is the more generous of the two.
If you lose any possessions in a covered claim and have actual cash value coverage, you’ll be reimbursed according to the depreciated value of the lost belongings (as well as your policy’s deductibles, limits and other details). For example, assume you purchased a new dining table for $500 a few years ago, but now the table is used and only worth $300. If it was destroyed in a fire and your insurance covered the claim, you’d get $300 for the table.
In contrast, replacement cost value coverage would reimburse you according to how much it would cost to replace the belongings you lost in a covered claim. In the above example, you’d get $500 for the dining table, because that’s how much it would cost to buy a new one.
If you have only actual cash value coverage for your personal property, you may want to look for a policy that offers replacement cost coverage. Without it, you might have to spend thousands of dollars to replace the items in your Chicopee home if they’re ever stolen or destroyed.
Consider Your Deductibles and Limits
Second, look up your personal property coverage’s deductibles and limits to make sure they’re what you want. It may be tempting to have a low deductible so you don’t have to pay a lot if you have a claim. Increasing your deductible can substantially lower your premiums, though.
Agents often recommend increasing deductibles if you want to keep your rates low but also selecting high limits so you’re fully protected. Many insurers offer higher limits at only marginally higher rates.
Look for Exceptions and Exclusions
Finally, if you have any possessions that are particularly valuable, make sure your policy doesn’t have any special clauses that either exclude coverage for these items or minimize the coverage of these items. Many homeowners policies limit or exclude coverage for jewelry, firearms, collectibles and other valuable items.
If your policy has any exclusions or limitations that apply to your possessions, you may need to purchase a rider to fully protect them. A rider is an add-on form of insurance that can insure a specific item.
Ask a Chicopee, MA Agent for Help
Should you want assistance with any of these steps, simply contact an independent insurance agent serving Chicopee. An independent agent can help you review your current homeowners insurance policy, and they can help you find better coverage if you need more protection.