Maintaining both traditional homeowners insurance and contents insurance to cover personal property and valuable home furnishings and equipment is a necessity for most individuals and families. House and contents insurance policies combine both types of coverage, offering comprehensive protection against almost any natural disaster or catastrophic event that may cause damage or destruction to a home or its contents. Liability insurance coverage is also usually included in a combined contents and homeowners insurance policy, offering even more protection against financial liabilities from accidents that occur on the property. While most insurance companies offer significant discounts for customers who carry both contents and homeowners coverage with them, combined policies can offer even more savings in many cases.
House and contents insurance includes traditional homeowners insurance; this typically covers structural damage to the home as well as theft, fire, and smoke damage. While homeowners insurance usually covers a portion of the cost of the home’s contents, it is not as comprehensive or detailed as combined coverage packages. For many individuals, these combined policies can offer superior coverage as well as enhanced peace of mind. Structural coverage usually applies to the main residence only, although outbuildings may also be covered at a reduced rate or for an additional fee. Not all damaging events are covered under the typical homeowners insurance policy, however; floods and earthquakes often require additional fees and are covered under riders, added provisions that are attached to the policy at the time it is written.
Just as with other types of homeowners insurance, the cost of house and contents insurance policies can be reduced by the application of discounts for various safety and security devices. Smoke alarms are legally required in most localities; additionally, incorporating appropriate fire safety measures can significantly lower the cost of monthly premiums in most cases. Many homeowners insurance and contents insurance companies offer discounts for the installation of sprinkler systems as well. Anti-theft measures can also be a cost-effective investment not only for the added security benefits, but for the lower cost of insurance coverage. Maintaining auto, boat, or other insurance policies with the same company can also result in savings, allowing consumers to keep more of their hard-earned money.
Combining house and contents insurance into one policy makes solid financial and practical sense. By maintaining all home insurance coverage with one company, consumers can reduce the paperwork and often achieve a significant savings over obtaining the same coverage separately. The right property insurance can ensure financial security and resilience even after a major loss; by investigating the various choices carefully, consumers can be certain they’ve gotten the best price on the insurance policy that best suits their needs.