Homeowners insurance question - is there a good rule of thumb about how much personal property insurance one should buy?

Just got my policy also and it had jumped up 200 from last year with no claims on the policy ever. I shopped around and found that AARP had a much lower price. I went with 50% and AARP.

I had this same problem with Nationwide last year. I wanted replacement value of my home, not a percentage of their offer. I had to pay more to receive the coverage, but I feel much more comfortable with the updated coverage I now have.

You should also take photos of each room, showing its contents. This is a much more accurate way of filing a claim, since at a time of tragedy, the brain goes haywire sometimes.

We experienced this in the tornado of 1998 in my city. The photos really came in handy for claims reimbursement from Nationwide.

All insurance is strictly with a good agent. Get to know him/her.

From Smart Money:

“Figuring out what the contents of your home are worth is certainly tedious. But the effort is worth it. Most companies cover your possessions for 50% to 75% of whatever your home’s structure is insured for. If you have a lot of nice things you may need more.

To figure out how much coverage you need, you have to do an inventory, listing everything you own. Estimate the value of the possessions at current prices. If it all adds up to more than the amount your policy specifies, you’ll have to purchase extra coverage. Performing an inventory may sound like a lot of work, but you’ll need it to prove ownership when it comes time to file a claim.

Make sure your policy covers what it would cost to replace your possessions and not what insurers term the “actual cash value.” Even policies that cover replacement cost for the structure may deduct for depreciation for your goods. That would mean you might only get a few hundred for your nine-year-old couch, instead of the $2,000 it takes to replace it. You also need to check the limits on certain personal items, such as jewelry, computer equipment, and antiques. Chances are if you own these things you’ll need a rider to cover them.”

@marinelife – yes, I saw that too, but I don’t have the impetus to do the work :-(

My insurance co. also calculates personal property as a percentage. Makes me feel inadequate because I have nowhere near that much personal property.

@elbanditoroso The easy way to do it is to take four photographs of every room, then sit down at your computer at your leisure and list your belongings. We have done that about every five years.

If you need incentive, try talking to people who have suffered a complete loss due to a fire, and they will tell you it’s well worth the trouble.

I got all the incentive I needed because I have been in Southern California fire country most of my life – but never suffered a personal fire loss.