Contents insurance helps protect the belongings inside your home like furniture, electronics, clothing, and appliances from risks like theft, fire or certain types of damage.
While homeowners insurance covers the structure of the house, contents insurance focuses specifically on what’s inside. It’s also available as a standalone policy for renters, condo owners and even people sharing housing. The average price of a renters insurance policy in the US is around $16/month. Prices for tenants’ contents insurance start from as little as $15.65 for 12 months of cover. However, it is important to note that contents insurance typically does not cover accidental loss within the home.
If your things are damaged or stolen, contents insurance can help you repair, replace or get compensated for them. A contents insurance policy with actual cash value coverage reimburses the policyholder for a percentage of what they originally paid for an item. A deductible is the amount you pay out of pocket before your insurance company contributes to a claim.
When you buy contents insurance, you select a coverage amount based on the total value of your personal belongings. To determine this amount, you need to start by taking inventory of your belongings.
If something happens, a break-in, a fire or a covered disaster, you can file a claim. After reviewing the loss, your insurance company will reimburse you based on your policy terms, up to your coverage limits. Documenting belongings can be beneficial when making an insurance claim.
Policies can pay out based on:
We’ll explain the difference below!
Contents insurance is helpful for:
If you own anything you wouldn’t want to pay to replace out of pocket furniture, clothes, jewelry or laptops contents insurance is a smart choice. High-value items may require specific riders or endorsements, which could incur an additional cost.
Contents insurance helps protect you when the unexpected happens, giving you peace of mind and financial support.
Contents insurance is a crucial aspect of home insurance that protects your personal belongings against loss or damage. There are several types of contents insurance, including:
Check your policy to see what type of contents insurance you have and what it covers. You can also customize your policy to fit your needs and budget by adjusting your coverage limits and adding add-ons.
| Coverage type | What it covers |
| Contents insurance | Personal belongings like furniture, electronics, and clothes |
| Homeowners insurance | The structure of your home and sometimes your contents |
If you rent, you usually only need contents insurance. If you own a home, your homeowners policy often bundles both structure and contents coverage, but you’ll want to check your policy limits. Your insurance policy will typically outline what you need to inform your provider about during the term of your policy. Most home contents insurance providers allow you to update your policy to include new high-value items.
When you buy contents insurance, your policy will include:
For example:
Standard contents insurance typically limits coverage for valuable belongings like jewelry and furs.
High-value items might need extra coverage (sometimes called a scheduled endorsement). Scheduled personal property coverage is optional coverage you can purchase to provide additional protection for certain valuables. A policy may have a single-article limit, which is the maximum you can claim for any single item unless you specify it separately in the policy. You may need to list high-value items separately on a contents insurance policy to claim their full value if they exceed the single item limit. High-risk items are valuable belongings that are easy to steal, like jewelry, antiques or electronics.
A good rule of thumb: Add up the replacement cost of everything you own to determine how much coverage you need.
That includes:
If you’re not sure of the total, it’s better to estimate a little higher you’ll want enough coverage if you ever face a major loss.
Speak with a VIU by HUB Advisor to determine the right amount of coverage for your situation.
Here’s a simple way to estimate your contents value:
Having an inventory makes claims easier and helps you make sure you’re properly insured. Official documentation, such as receipts and appraisals, should be attached to your home inventory.
Contents insurance usually covers:
It covers these belongings against covered perils like theft, fire, certain types of water damage, vandalism and storms. In standard home insurance policies, contents are covered on a named perils basis. Contents insurance may cover personal belongings while in transit to a new home, but does not cover damage caused by movers. Some contents policies will cover items in your garden, but you may need to add extra cover for expensive items. You can get short-term home insurance to cover unoccupied properties during renovations.
Contents insurance typically helps policyholders replace stolen items, though there are often sub-limits for high-value items like jewelry.
Standard contents insurance often does not cover:
Additionally, damage from water leaks is often not covered by standard contents insurance.
Always check your policy’s exclusions so you know exactly what’s protected.
Typical covered risks include:
Some policies offer optional add-ons for broader risks, like accidental damage or flood coverage.
Accidental damage is a common add-on to contents insurance policies. It provides protection against unforeseen events, such as:
Add-ons can provide additional protection and peace of mind. Some common add-ons include:
Review your policy documents, especially the exclusions to understand what’s covered and what’s not.
Yes! Renter's insurance is essentially contents insurance plus liability protection, similar to a home insurance policy that safeguards personal belongings within the home.
If you’re renting a home, apartment, or condo, your Renter's Policy typically covers your personal belongings up to your selected limits, whereas a homeowners insurance policy also impacts the coverage limits for items stored off-premise.
Sometimes, yes! This depends on your existing contents insurance policy.
If you're unsure, connect with a VIU by HUB Advisor to explore your coverage options for personal items away from home.
After a covered loss:
The policy premium can vary based on factors such as the deductible, coverage limits and additional valuables included in the policy.
| Term | What it means |
| Actual Cash Value (ACV) | Pays the depreciated value of your items (what they were worth at the time of loss) |
| Replacement Cost Value (RCV) | Pays what it would cost to buy new items of similar kind and quality |
The claims process for contents insurance typically involves:
When shopping for contents insurance, it’s essential to compare quotes from different insurers to find the best policy for your needs and budget. A comparison service can help you:
By using a comparison service, you can make an informed decision and find the best contents insurance policy for your needs and budget. Remember to always read the policy documents carefully and ask questions if you’re unsure about any aspect of the policy.
Sources:
https://www.lemonade.com/renters/explained/this-is-how-much-renters-insurance-actually-costs/
