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I'm SINK, so only would need to replace items for one person.
I'm also in my mid 50s who I've lived long enough to have accumulated a fair amount to "stuff."
I got insurance for as low amount of "replacement" for personal property, because I also know half -- ok maybe A LOT -- of stuff I have I WOULD NOT REPLACE. I need to get rid of a lot of it ANYWAY. And sure as heck wouldn't replace it. I'm ready to go minimalist right now.
For example I wouldn't replace 95 percent of the clothes I have. Half still have tags on them anyway. And I spent 6K on a BR set, and 5K on a LR set when I was younger. I got my bathroom accessories all at Bed Bath and Beyond -- 10.00 each for a cup, soap dish, two dispensers, plus 25.00 for a small frigging bathroom trash can. I sure as hell wouldn't do that now. I'm trying to save for retirement. I'd head straight to Walmart and IKEA!. Between the Dollartree, Walmart, IKEA, and maybe a furniture place like Ashley or Havertys (a Midatlantic retailer) I know I can replace everything I'd CARE TO REPLACE for less than 100K -- INCLUDING TV's and appliances. And that INCLUDES a complete kitchen remodel or something like that due to fire or whatever. Although I don't necessarily think of kitchen cabinets or light fixtures as "personal possessions." Bookcases yes, kitchen cabinets….no. Outside of something like that, I don't' think I'd need even 5K per room. 3K for dishes and cookware? I don't think so.
So I would say that given a person's individual situation 175K could indeed be more than enough.
I'm SINK, so only would need to replace items for one person.
I'm also in my mid 50s who I've lived long enough to have accumulated a fair amount to "stuff."
I got insurance for as low amount of "replacement" for personal property, because I also know half -- ok maybe A LOT -- of stuff I have I WOULD NOT REPLACE. I need to get rid of a lot of it ANYWAY. And sure as heck wouldn't replace it. I'm ready to go minimalist right now.
For example I wouldn't replace 95 percent of the clothes I have. Half still have tags on them anyway. And I spent 6K on a BR set, and 5K on a LR set when I was younger. I got my bathroom accessories all at Bed Bath and Beyond -- 10.00 each for a cup, soap dish, two dispensers, plus 25.00 for a small frigging bathroom trash can. I sure as hell wouldn't do that now. I'm trying to save for retirement. I'd head straight to Walmart and IKEA!. Between the Dollartree, Walmart, IKEA, and maybe a furniture place like Ashley or Havertys (a Midatlantic retailer) I know I can replace everything I'd CARE TO REPLACE for less than 100K -- INCLUDING TV's and appliances. (Now, that doesn't include needing a complete kitchen remodel or something like that due to fire or whatever. I'm not thinking of kitchen cabinets as "personal possessions." Outside of something like that, I don't' think I'd need even 5K per room. 3K for dishes and cookware? I don't think so.
So I would say that given a person's individual situation 175K could indeed be more than enough.
I didn't purchase my furniture or the like at Walmart and ikea so in the event of a total loss I wouldn't go there for the replacements either
Because I've been in their house and seen it? Just my family's example.
I'm just saying you will have a different understanding of the cost once you actually have experience shopping and buying household items for a home of this size, instead of just looking. For example, I'm estimating one small drawer in my kitchen probably has at least $250 worth of random utensils and accessories, accumulated over 40 years. And I have several more drawers and cabinets in the kitchen with the higher priced items.
I think that the insurance practice varies by state. In CA they also give you a percent of the house value as the 'free' included personal property coverage.
I also have a vacation home in Tennessee and there I had to pay extra for the personal property, and one chooses how much coverage they want. It was an additional $189 for $5k, minimum. The cost per unit of coverage went down as the amount of coverage went up.
Also, my mom's house burnt down, a total loss, in CA. She had over $200k in personal property coverage. BUT it was replacement coverage. So, all the clothing was valued at thrift store prices--good luck really replacing them there. And they give one a small amount of the money unless you show receipts for replacement AT USED PRICES. So, my mom has say 20 underwear pants. The insurance company values them at 25 cents each, so the value was 20 times 25 cents equals $5. However they give her a check and payment for ten cents per underwear so they pay her 20 times 10 cents equals $2.00. Now if she wants to collect the remainding $3 of the loss for the underwear she MUST BUY USED UNDERWEAR AT A PLACE THAT GIVES A RECEIPT, THEN THEY WILL PAY UP TO 25 CENTS PER UNDERWEAR. If she gives them a receipt for new underwear they reject it as her underwear were used.
GOOD LUCK DOING THAT, EVEN IF YOU WOULD WANT TO. SO FOR CLOTHES, BEDDING--WANT USED SHEETS WITH BED BUGS ANYONE?--the insurance companies know you will not really replace the things and collect their meager 'full replacement costs' taking only their initial offering.
This practice goes into everything--try finding used dishes, pots and pans, and flatware in full sets, or couches that are decent. So in the end you will get very little for your stuff and not really be able to replace it.
When I got the TN insurance I only figured out the coverage amount to cover the major things--refrigerator, washer/dryer, tv, computer, etc. Knowing that the claims will greatly exceed the coverage so I will be happy with the pittance they offer...and buy new clothes, etc. But not count on insurance to really replace your stuff. If you really have nice stuff you will not find it used to buy to actually replace your loss.
I'm in the process of getting quotes for homeowners insurance. Amazingly, I've somehow managed to go my entire adult life without any due to renting and then living in a townhome for several years (renter's insurance).
My question is this: all of the insurance companies have provided me with a quote for personal property that is 50% of the sale price of the home. As I understand it, personal property is for the contents of the home - clothes, electronics, even the appliances. For a $350,000 house this comes to $175,000 of protection. Is that normal to have THAT much coverage for personal property? We have a few computers, some TVs, the normal appliances......nothing very expensive and due to living in FL we don't have a basement to store anything so we really don't have a ton of "stuff" here. Or does that possibly cover literally everything inside the house - water heater, air conditioning unit, etc.? Confused as to why this is standardly so high.
You start looking at everything you have. Now imagine you go to work and come home and everything is gone. You will be shocked but you will be shocked even more at how much all your stuff costs to replace when you add it up.
I had renter's insurance at the insistence of my insurance agent. I never thought I'd need it. It was a $10,000 benefit.
I bought it at age 24. a couple years later in 1989? 1990? I lost everything to an electrical house fire. The Landlord's insurance did not cover anything for me, per usual. I was LUCKY. It was at night, I was home alone {room mate was at GFs} at 2:30 Am I had to crawl out my BR window, which was stuck so I had to break it, use a blanket and quilt for glass and i was wearing only socks nad undies..in the middle of FEb...in New England..in winter...I was taken via ambulance to the hosital for smoke inhalation and quit breathing on the EMT 3 times on the way...I am lucky I woke up and kept my BR door closed due to having a room mate!!!
I added up stuff I had...from photos and personal knowledge...tp a total of $24,500. For a single person, and that MAY not have been everything. I got all $10k. BUT: I was told I could write evrthign off nto reimbursed on my taxes...so i thought I'd deduct $14,500..>WRONG! its apart of a portion of a percentage of the unreimbursed amount...about $1200.
This was when personal computers cost $2,500 for an IBM clone as they called them, and before internet. Check.
clothes-jeans for job one: @ $25/pr-6 pairs...$150. Check. Tshirts 20 @$5 each...about $100. Dress clothing..about $200. Socks, underwear, slippers, jackets, coats, hats, mittens, shoes...several pairs...3 prs for work alone///2 to rotate at job one, the third pair for job two cook in a restaurant..heat of the kitchen took its toll quickly on them....at about $35/pr. 2 pair dress shoes....2 pair Boots for winter {one heavy, one light, one pair rubber boots...iron.
Bedding: 3 sheet sets, mattress cover, bed, frame, electric blanket, blanket, quilt, pillows {4}, night stands, alarm clock, bedside phone, BR TV, 2 dressers, mirror, bedside rug, etc.
I was a MEGA A/V-ophile COUNTLESS albums {vinyl}, CDs [was converting albums to CDs} and VHS tapes...say100 CDs @ $10...$1000 check. Albums about 75 @ $5...$375. Check. VHS tapes...5 3 drawer cabinets holding 24 tapes each FULL...120 @5.00 -$600. check. WHat are we up to now? $1975 just for A/V stuff!!!. PLUs a Pioneer component system...a receiver, a CD 5 disc player with 4 extra cassettes {each holding 5 discs}, a VCR, an equalizer, a record player, etc, all controllable by a large remote...about $4000 there--bought throughout the '80s. total A/V stuff? about $6k. PLUS color 25"{?}TV and video camera when they used VHS tapes, and the Video cameras were $1295 each and didn't stream video digitally...in 1983. SO now up to what...about $8k. AV cabinet.
Bath: toothpaste, toothbush, shampoo, soap, {the extras of each of those and more} washclothes, towels, bath rugs, bath mat, comb brush, bandaids, OTC meds, etc etc....
I oWNED the washer dryer myself...each had to be replaced.
LR:couch, two chairs, rocker, rug, drapes,coffee table, side tables, lamps, etc etc..
GET the Picture??? IT ALL ADDS UP. YOU MAY need $147k to replace everything....
WHen I stayed at the hotel the next night, I showered and found i had no comb to comb my hair, and the hotel didn't provide one. I Cried because I had no comb to comb my hair.....I now keep a comb in every jacket pocket and every time I go out I have one and have one in my vehicles! I am thankful every day I ahve a comb to comb my hair now! OF ALL I LOST, THE COMB was the ONE THING I missed the MOst!
They say everything can be replaced...but not pictures, photo albums, address books, etc. I had family/relatives who helped in that department...
....and a comb....
KEEP the full insurance, YOU MAY NEED IT! It WILL cost to repalce all!!!
I speak form experience.....
TAKE pictures of all rooms, open all drawers, take pictures, open all doors, take pictures, TAKE pictures of all you own...and store off site like in a safe deposit box! update annually!
Something about replacement cost and actual cash value.
A previous poster described someone (I think his mother) who received way less than the value of the lost items as replacement. She likely had actual cash value coverage which is the depreciated value.
Yes, and that is why we have WAY more than $175K in personal property coverage--that coverage would give me my antique table back....and nothing else.
Price out the difference between 100K, 175K, 275K, etc, you are probably talking about 20/year, maybe....
Unless you have water damage claim history on your insurance record like my parents do. My parents got divorced in '06, but my mom made the mistake of not getting her name off my dad's home insurance soon enough.
Then the water heater leaked, and leaked, and leaked...
And now both of them are paying much more for their insurance (or were, for a while, at any rate).
Different strokes for different folks.
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