When you purchase items for your home, you may be offered warranties to cover them. In most cases, a warranty will cover you for a period of time and for things such as mechanical malfunctions or abnormal wear and tear. However, you would still need a contents insurance policy to cover these type of items for breakage and theft since warranties won’t cover them.
What is Contents Insurance?
Contents insurance is different from building insurance. Building insurance just covers the structure and the inner structure of your apartment or home, while contents insurance covers your personal belongings. A contents insurance policy can cover anything from your desktop computer to your personal wardrobe. People often sign up the contents insurance to insure their personal property against damage caused by storms, floods or other eventualities that could destroy these contents. Contents insurance isn't just for homeowners either, if you live in an apartment or rented condominium you can also sign up for a contents insurance policies.
If you live in a building that is already covered by your landlord, make sure your landlord also has contents insurance. If they don't, you’ll only be insured for structural damage, but not for the damage of your personal property.
What Does a Warranty Cover?
When you purchase a new appliance or electronic good, it will usually come with a manufacturer’s warranty. At the time of purchase you may even be asked if you want to sign up for additional coverage of the product. The reason why is because the warranty that comes with the product usually only covers mechanical breakdowns or defects.
However, this warranty will not cover you for water damage, fire damage or other outside factors that cause the product becomes defective. Warranties are also temporary by nature. Televisions, computers and radios may only come with a one year warranty whereas refrigerators and stoves may come with a 10 to 15 year warranty. However, these warranties usually only cover faults within the product and not damage to the product caused by external elements.
Why Add Contents Coverage on Your Items?
In addition to the reasons given above, contents insurance also covers for theft. Warranties will only cover the item if the item is still present, but if you are victim of home invasion, the warranty will automatically void out. You could use the current warranty if you're having problems with the product in general and if it's too late to bring it back to the store you purchased it from; however, if you accidentally break the item, you can use the contents insurance to replace it. Keep in mind however; that the contents insurance only covers up to a certain dollar amount each year and it only covers up to a certain dollar amount per item.
If you want more information on how to keep your contents covered in case of theft or damage, give us a call at (708) 957-7020.