Anyone know of a reputable insurance company that doesn't insist on 70% of home value for personal property?

Question

Anyone know of a reputable insurance company that doesn't insist on 70% of home value for personal property?

Answer 1

Most Insurance Companies will automatically place at least 60-70% coverage on your personal effects. There are some ways around it: You can ask that your personal property is not covered for relacement cost-this should reduce the value to about 50%, or you can ask for a policy that only covers your home and contents for Actual Cash Value (ACV) instead of replacement cost. You could even ask for a Fire Policy with Contents coverage added rather than a Homeowner Policy.

As an Insurance Agent I would not advise doing any of the above, have you actually gone through your home and made an inventory of EVERYTHING? Try replacing everything you own-down to your last sock, bar of soap and contents of your fridge at todays prices. I think you'll be shocked.

If you can find an Agent or Ins Co that is willing to write you a policy with only ACV then be prepared to confirm your decision in writing. When and if you have a claim you will not get back enough money to replace the damaged or destroyed item(s) and the Agent or Company that wrote your policy will not want you to claim against them for an improperly written policy.

Answer 2

Well, they're out there - some go as low as 50%.  The PROBLEM is, it's not going to make you happy.

See, the PREMIUM is based entirely on the DWELLING limit, not the contents.  So dropping to 50% isn't going to save you any money.  Additionally, you'll be moving from preferred rates to standard rates, so the premium will actually be HIGHER.

And usually when people want to cut the limits, it's because they think they're going to save money that way.  You aren't.

Buying a homeowners package, means you get all six coverages.  You can't "opt out" or lower one (although you can raise one if you want).  Sure, you don't have any "other structures", but the coverage is there anyway.

Think of it like a trip to a restaurant.  You tell the waiter, no napkin, no glass of water, and no bread.   But they won't take anything off the bill, you still pay full price.  And if you don't want one of the vegetables, well, you have to move to the ala carte menu, and it can actually cost MORE.

Hope that helps.  If you STILL want lower coverage at a higher price, call around to local, independent agents, and ask if they have carriers that will give you 50% instead of 70% on contents.  Some really still do.