Homeowners insurance policies include numerous individual parts. These separate categories cover you for various situations, such as injuries that occur on your property or physical damage to your dwelling. One critical part of this coverage is your personal property or contents insurance. This aspect of your policy covers the items inside your house, including everything from furniture to computers.

If you're trying to keep your monthly budget under control, one option might be to reduce coverage on your home. While you always want to ensure sufficient coverage to rebuild in an emergency, you may be overinsuring your personal belongings. Understanding if your policy includes this extra coverage can help you save some money. 

Understanding Your Policy

Before you can determine if you're paying more than necessary, you'll need to start by understanding how your policy works. Your coverage for personal belongings may include many subcategories and separate limits. You may be able to find these policy limitations under headings such as scheduled personal belongings coverage.

In most cases, subcategory limitations take the form of per-category or per-item limits. For example, your personal belongings policy may cover up to $50,000 worth of damage, but only $1,500 for jewelry. Other common category limitations include electronics, artwork, and collectibles. If your policy has a per-item limit, your insurance will only pay up to that amount for any single item.

Before making any changes, make sure you have a clear picture of your current coverage limitations. If you aren't sure, now is a good time to call your insurance company and ask questions. Take note of the specific categories your insurance covers and any optional coverage that may be available as an add-on.

Adjusting Your Coverage

Unnecessary coverage can drive up your premiums while providing little or no benefit. After all, you don't need scheduled coverage for firearms if you don't own any guns. Removing coverage for categories that don't apply to you can be an excellent way to save some money on premiums. You may also want to consider reducing coverage if you know your limits far exceed the value of your belongings.

On the other hand, you should also pay attention to areas where your policy may be lacking. Do you have a large number of electronics or a valuable art collection? Losing these items in a fire, flood, or another event can be disastrous, especially if their value exceeds your current coverage limits. In these cases, the safer option is typically to increase your coverage to protect your items.

Ultimately, saving money on personal belongings insurance is a balancing act. While you can save some cash by removing unnecessary coverage, you should also ensure sufficient protection for your valuables. This approach is the best way to keep your premiums under control while mitigating your future risk.

Contact a homeowners insurance agency near you to learn more.