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When you have a new home, the last thing you want is to worry about whether your new furniture will be safe or not. That’s why it’s essential to have your furniture insured from the very beginning, especially if you don’t know much about insurance and what it entails for you as the homeowner. If you are wondering how do you go about insuring your new home’s furnishings, read on for some helpful tips.
What is Furniture Insurance?
Furniture insurance is a type of insurance that protects against loss or damage to your furniture. And like all types of insurance, it protects you against the potential financial loss that comes from the unexpected occurrence of a covered event. When you have furniture insurance, the insurance company protects you against the following:
– Your furniture accidentally breaking or being destroyed
– Your furniture breaking down and needing costly repairs
– Your furniture being stolen and not being able to be recovered or repaired
– Your furniture getting damaged or destroyed because of severe weather conditions, such as a fire or a flood
Know the basics of furniture insurance
When you are looking into getting insurance on your new home’s furnishings, it’s important to know what you’re getting into. Basically, the basics of furniture insurance include the following:
– It protects against the loss of your items
– The insurance company will cover the cost of replacing your items if they are damaged or destroyed because of an accident, such as a fire or flood. It’s important to understand that the cost of replacing an item is based on the current price of the item. So, if a couch costs $1,000, you’d be responsible for paying $1,000 to replace it.
– It protects against damage – If your items are damaged by, for example, a fire or flood, the insurance company will cover the cost of repairing or replacing them.
How Much Does Furniture Insurance Cost?
The cost of a furniture insurance policy depends on several factors, such as your level of coverage and your geographical location. The most basic level of coverage is usually around $100 a year and covers the replacement cost of one single item. With this level of coverage, the insurance company will cover the cost of repairing or replacing your items if they are damaged. Higher levels of coverage may cost less per year and offer more benefits. Here are some examples of what you can expect to pay depending on your level of coverage:
– Basic coverage: $100 a year or $10 per month.
– Standard coverage: $300 a year or $18 per month.
– Aggressive coverage: $800 a year or $36 per month.
– Very aggressive coverage: $3,600 a year or $144 per month.
– Unthinkable coverage: $7,200 per year or $288 per month.
Define your Coverage Options
The coverage options of a furniture insurance policy are key to finding the right policy for you. There are several different types of coverage you can choose from. Here are some of the most common coverage options:
– Replacement Cost – This option will cover the cost of repairing or replacing your items if they are damaged. This is the most basic form of coverage and is usually the default option.
– Actual Cash Value – This option will cover the current market value of your items if they are damaged. It’s usually a good option for items with a high resale value.
– Declared Value – This option will cover the amount the insurance company has determined your items are worth. Usually, this amount is lower than the actual value of your items.
– Additional Living Expense – This option will cover your living expenses if you are forced to move out because of damage to your items. You’d be covered for all other living expenses, such as food, utilities, transportation, and so forth.
Ask the right questions to find the best coverage for you
As you are researching different options for your new furniture insurance policy, consider these questions to help you find the right policy for you. You may find that you have different coverage options that you think you need, but you really don’t.
– What are my risks of having my items damaged or destroyed?
– What are my risks of having my items broken or repaired?
– What are my risks of having my items stolen?
– What are my risks of having a fire or flood damage my items?
Conclusion
Furniture insurance is a crucial type of insurance that protects you from the financial loss that comes from the loss or destruction of your new home’s furnishings. Sometimes the home insurance provider bundled them with your main home insurance or sells it as different coverage. It’s important to get started on the process of getting your furniture insured from the very beginning of the house-buying process. It’s also important to understand some of the basics of furniture insurance, such as what covers you have and how much it will cost. Once you’ve got the basics down, you’ll be able to find the right coverage options for you and your family.
