Investing in a property and contents insurance policy is an important process, especially if you own your own home. Even renters, though, need to have contents insurance. The following are three things to consider before you begin working with the insurance agency to set up your policy.

#1: Are there any policies you can combine?

If you have concerns about cost and affordability, then combining policies is the best option. When deciding which companies to get quotes from, begin with those that offer multiple insurance products which your family already uses. This can include auto insurance, life policies, and even health insurance. When asking for quotes, request a quote for all the various insurance products along with the multiple policy discounts. Then, compare this overall cost to the cost of having all the policies help by separate companies. Often, one insurance product may be higher priced compared to a separate policy, but the overall discount affords savings.

#2: How much insurance will you need?

You don't want to err on the side of too little insurance. The amount of coverage for the structure itself shouldn't be the value of the home, but the cost of replacement. For example, if the house is completely destroyed you want insurance to pay out enough to both demolish the remains of the old structure and to build a comparable replacement structure. As for contents coverage, don't just think about current value but replacement value. True, all of your furniture may be second hand with little value, but how much will it cost to replace an entire living room suite in the event of flooding? Of course, if you have high-value items, it is also important that you take out enough insurance to account for their value. Often, the agent will visit your home for a walkthrough to help you properly value all of your belongings.

#3: Should you consider an umbrella policy?

There are umbrella policies that can be helpful in some situations. A common policy is one that affords greater liability coverage in the event someone is injured on your property. This is a good policy to add on to your home insurance if you are at higher risk for an injury lawsuit. For example, those that own a pool, trampoline, or even a large dog may want this policy to protect their personal assets in the event someone is hurt by the above. Another common umbrella coverage is if you have items of higher than the average value, such as certain types of jewelry or expensive artwork. A normal contents policy may not provide sufficient coverage for these items.

Talk to an insurance agency like Livings Insurance for more help in choosing the best policy.