Contents insurance

What is contents insurance?

Contents insurance helps protect the things that make your house feel like home, such as furniture, electronics, clothes, appliances and more. If they’re stolen or damaged due to covered events like theft or fire, your policy can help you repair, replace or get compensated for them.

Unlike homeowners insurance, which covers the building itself, contents insurance focuses on what’s inside. It’s available as a standalone policy for renters, condo owners and even people living in shared housing. While the average renters insurance policy in the U.S. costs around $16 per month, some contents-only policies are about that much per year.

Just keep in mind that most policies won’t cover accidental loss or damage inside the home unless you add extra protection.

How contents insurance works

Getting started is simple. When you buy contents insurance, you choose a coverage amount based on how much your belongings are worth. That means taking a bit of time to estimate the total value of your personal belongings.

If disaster strikes, say a fire, break-in or burst pipe, you can file a claim. Your insurance company will review the loss, and if it’s covered under your policy, you’ll get reimbursed up to your coverage limits. Having a detailed inventory makes the claims process much smoother.

Policies usually pay out in one of two ways:

• Actual cash value (ACV) – Pays the current depreciated value of your belongings, not what you originally paid.
• Replacement cost value (RCV) – Pays what it would cost to replace items today. This coverage costs more but offers fuller protection.

Who needs contents insurance?

If you own anything you’d rather not replace out of pocket, contents insurance is worth considering. That includes your couch, laptop, winter coat or grandma’s necklace.

Here’s who especially benefits:

• Homeowners – Even if you already have homeowners insurance, contents coverage protects what’s inside your home.
• Renters – Your landlord’s insurance covers the building, not your belongings. Contents insurance fills that gap.
• Condo owners – Protects your possessions inside your unit, especially if the condo association doesn’t.

Do I need contents insurance?

Let’s put it this way. If you flipped your home upside down, could you afford to replace everything that falls out?

From furniture and electronics to clothes and collectibles, contents insurance helps you recover from unexpected losses. For high-value items like engagement rings or artwork, you might need to add specific riders or endorsements, but the peace of mind can be well worth it.

Types of contents insurance

Contents insurance isn’t one-size-fits-all. You can tailor it based on what you own and how you live. Here are some of the most common options:

• Standard contents insurance – Coverspersonal belongings against theft, damage or destruction. This is the most basic and widely used type.
• Accidental damage insurance – Add protection for those everyday “oops” moments like dropping your phone or spilling red wine on the couch with this type.
• High-value item insurance – Get extra protection for expensive items like jewelry, collectibles or artwork that might exceed standard limits with this coverage.
• Portable contents insurance – Protect belongings when you’re on the go such as traveling with a laptop or storing boxes in a storage unit.

Always check your policy to see what’s included and what you might want to add based on your lifestyle.

Contents insurance vs. homeowners insurance

It’s easy to confuse these two, but they protect different things.

Contents insurance covers your personal belongings, such as furniture, electronics and clothes. It’s especially helpful for renters, condo owners or anyone who needs protection for their possessions but not the building itself.

Homeowners insurance is designed to cover the structure of your home. It often includes contents coverage too, but you’ll want to check your policy to make sure your belongings are covered for the right amount.

Contents insurance coverage limits

Your contents policy includes limits that affect how much you’re reimbursed in a claim. Here’s what to know:

• Total limit – The maximum amount your insurer will pay for all covered belongings.
• Sub-limits – Smaller caps for certain categories like jewelry, electronics or collectibles.
• Single-item limits – The most you can claim for any one item unless it’s specifically listed.

For example:

• Total contents limit: $50,000
• Jewelry sub-limit: $1,500
• Electronics sub-limit: $2,500

High-value items like fine jewelry, antiques or high-end cameras may need to be scheduled (listed separately) to be fully covered. These are sometimes called scheduled personal property endorsements. Without one, you may only get partial reimbursement.

How much contents insurance do I need?

A good rule of thumb is to add up the replacement cost of everything you own. You might be surprised by how quickly it adds up.

Think about:

• Furniture and decor
• Appliances
• Clothing and shoes
• Electronics (TVs, laptops, gaming systems)
• Jewelry, artwork and collectibles

Not sure of your total? It’s better to overestimate slightly than be underinsured if something major happens.

Still unsure? A VIU by HUB Advisor can help you figure out the right coverage amount for your situation.

How to calculate the value of your contents

Creating a home inventory is easier than you think and incredibly helpful during a claim. Here’s how to get started:

• Make a list – Go room by room and write down your major items.
• Take photos or videos – Create a visual record of what you own.
• Keep receipts – If you have them, great. If not, do your best to estimate costs.
• Update regularly – Add new purchases or gifts over time.

Official documentation like receipts or appraisals can go a long way toward a smooth, successful claim. Think of this inventory as your financial safety net.