How much do I insure my contents for?

When we moved, we purchased all new furniture. How does my insurance company decide how much to insure my contents for? How do I know if I have enough coverage?

Steve Shoultz, of Priority Risk Management Inc., provides the short answer: the insurance company sets your contents limit as a percentage of your dwelling limit, typically either 70 or 75%. So, if you insure your home for $200,000, your contents limit will be around $140,000 or $150,000. I believe most people are woefully underinsured and would be unable to replace much of their belongings in the event of a catastrophic loss.

Steve provides a more detailed answer in tomorrow's blog.