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Can I reduce the Contents coverage on my Homeowners Policy?

Question : Can I reduce the Contents coverage on my Homeowners Policy?
I am going to do an inventory of my personal contents in my house to make sure I have adequate coverage on my homeowners Policy. If it turns out the coverage is too high can I get it reduced so I am not paying for coverage I don’t need? My company, Safeco, uses a fixed rate of 75% of the building value for the contents. It seems excessive.
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Best answer:

Answer by golferwhoworks
you can but it will not change you price by much

This entry was posted by admin on September 30, 2010 at 4:17 pm, and is filed under Property Insurance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (3)
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#1 written by Sue 1 year ago

With the companies I work with, they require 70-75% of the dwelling limit when you have the replacement cost on contents endorsement. If you don’t have it, the limit is usually 50%. This is a very important endorsement because without it, you would get paid for the actual cash vlaue of the items. Think about it, how much is the actual cash value of your clothes, not much, 10 cents on the dollar maybe? How much could you sell your 10 yr old couch for? Is it stained from the kids or animals? So, keep the 75% (it is included with the endorsement for free), figure the REPLACEMENT cost of all of your contents in your inventory & speak to your agent if you need MORE coverage. You may want to consider scheduling items such as jewelry, fine arts, silver, collectibles, etc for an additional premium and better coverage. Items such as jewelery & silver have limitations of coverage.
If you wish to save premium, raise your deductible, or see if there are discounts you are not getting, such as nonsmoker (some companies give this some don’t) alarm systems, sprinklers, etc.
Or, if you have not already done so, have your homeowners company quote your auto insurance for a multipolicy discount.

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#2 written by james m 1 year ago

If you are wanting to reduce the premium on your homeowners policy, choose a higher deductible. Instead of a $ 250 or $ 500 deductible, change it to $ 1000 or $ 2500.

If you did this, and had a covered claim, the company would just minus the deductible. It would be more out of pocket for you to pay, unless you could negotiate with the repairing contractor. If the structure is a total loss, the deductible is minused from the total claim.

The 75% of the dwelling for contents is built-in to the policy, so if it is fixed, the only way you could lower the contents coverage is to lower the coverage on the structure. That wouldn’t be a good idea.

Call your agent to see if he/she could help.

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#3 written by mbrcatz17 1 year ago

Nope, you can’t. It wouldn’t save you any money, anyway, even if you COULD. The entire premium is based on the DWELLING. That 75% limit on contents, they don’t CHARGE for it.

It’s kinda like the rolls they serve you at a restaurant, before dinner. Not eating the rolls, won’t get you a credit on the bill.

Usually when people want to cut coverage, that’s not REALLY what they want to do – they REALLY want to cut the premium. Talk to your agent, and see if there’s another way to save you some money on that policy.

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