Q: What exactly is home and contents insurance?
A: Home and contents insurance is insurance that protects you from financial loss and legal liability due to damage or loss of your home and your personal belongings within your home. An insurance company assumes the risk of your home in exchange for an agreed upon monthly or annual premium.

Q: Who needs home and contents insurance?
A: All homeowners need home and contents insurance. Without home and contents insurance you are putting your financial stability at a huge risk. For example, without home and contents insurance, who would pay for the rebuilding of your home if your house were destroyed by a fire? Who would pay to replace all of your personal belongings if they were stolen during a burglary? Home and contents insurance gives homeowners the peace of mind that should these things happen, their needs will be met.

Q: What happens if I don't have home and contents insurance?
A: Without home and contents insurance, you will be responsible for the financial ramifications should you suffer a loss to your home or the contents in your home. This could mean losing everything that you own in a matter of moments. It also means that you assume the legal risks if someone were to become injured on your property. You have no where to turn should any of these things happen.

Q: How much home and contents insurance should I have?
A: How much home and contents insurance you should have will depend on how much your home is worth and the value of the contents inside of it. Make sure that you don't underinsure your home or you will not be covered to the full value of your home in the event that you need to file a claim. You will also want to make sure that you are insured for the replacement value of your property, not the depreciated value.

Q: What happens if I don't have enough insurance?
A: If you don't have enough insurance, you will not be covered for the full value of your home and contents within your home in the event you need to file a claim. For example, if your home is only insured for $100,000, but it costs $150,000 to rebuild it and your home were to burn down due to a fire, you would need to come up with the extra $50,000 yourself in order to rebuild your home. You would also likely need to come up with additional money to replace a portion of the contents of your home.

Q: Where should I get home and contents insurance?
A: When buying home and contents insurance you should shop around for the best rate. The best way to do this is to work with an insurance broker who works with multiple insurance companies. A broker will be able to submit your application to all of the companies he or she works with in order to determine which company can give you the lowest premium possible.

Q: How much is home and contents insurance going to cost me?
A: How much your home and contents insurance costs will depend on a number of factors including how much your home is worth, how much your personal possessions are worth and whether or not you have filed any claims in the past. You can expect to pay at least $1000 per year for the average home and contents insurance policy.

Q: How long does it take to apply for home and contents insurance?
A: How long it takes you to apply for home and contents insurance will depend on the method that you use. For example, applying through the mail will take longer than an online application that is processed immediately. If you are in a hurry to get your home and contents insurance policy started, an online application is probably your best bet. In some instances, your policy can be started the same day you fill out your application.

Q: What if I need to make a claim on my home and contents insurance?
A: If you need to make a claim on your home and contents insurance, the first thing you should do is notify your insurance company. Make sure that you don't make any of the repairs yourself and that you don't hire a contractor to make the repairs before your insurance company approves the claim. In many cases, the insurance company will send a representative out to look at your home and to assess the damage. If you make repairs yourself or if you hire a contractor to make the repairs prior to your insurance company approving the claim, your claim may not be approved and you will be stuck paying for the repairs yourself.

Q: How can I save money on my home and contents insurance?
A: Many home and contents insurance companies will give you a lower premium if you have more than one insurance policy with them. For example, if you insure your automobiles with the same company that you're getting your home and contents insurance from, you may get a better rate. You may also get a discount for installing a security system in your home as many insurance companies offer discounts on premiums if the home has a working security system. For more details see our How to save on home and contents insurance article.