There are more than 2,000,000 housing units in Kentucky, and your personal possessions are the valuable items that make your house a home. Should disaster strike, like a fire, you're at risk of losing a lot more than the roof over your head.

For Kentucky homeowners, contents coverage is what pays for any losses to your personal stuff. It's typically included in your Kentucky homeowners policy, but there are limitations. For these reasons, working with a Kentucky independent insurance agent can ensure that you and your possessions are fully covered.

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What Is Contents Coverage Insurance?

Contents coverage insurance is a piece of your homeowners or renters insurance policy that protects your personal assets if they're damaged by covered risks that are outlined in your policy. 

You can protect your possessions using replacement cost value or actual cash value. Your Kentucky independent insurance agent can help you decide between the two, but here's a quick breakdown.

• Replacement cost coverage: Values the damaged item based on something of similar quality and value at the time the item is destroyed.
• Actual cash value coverage:  Will pay the replacement value of the item at the time it was destroyed, plus any depreciation. 

What Does Contents Coverage Insurance Cover in Kentucky?

Your contents coverage insurance covers personal items like furnishings and electronics against risks such as fire, wind, hail, theft, and similar events. It will cover your stuff whether it's in your home or being moved to a new location.

Additional items included in contents coverage

• Appliances
• Clothing
• Jewelry
• Decor
• Sporting equipment

The coverage has an overall limit, as well as limits for certain types of items, explained insurance expert Jeffrey Green. 

"Items like jewelry, currency, securities, firearms, artwork, silverware, credit cards, and electronics will have limits," said Green. "These items, except for credit cards and currency, can be covered separately using a personal items floater."

What Doesn't Contents Coverage Insurance Cover in Kentucky?

When it comes to exclusions in your contents coverage policy, there specific causes of loss and items that your policy will not pay out for. 

Causes of loss not included in contents coverage insurance

• Flooding
• Earthquakes
• Damage from nuclear war
• Intentional damage
• General wear and tear or poor maintenance

Personal items not included in contents coverage insurance

• Animals
• Birds
• Fish
• Motor vehicles
• Property used for business
• Property of renters

Several of the above exclusions can be covered by purchasing separate insurance policies. Your Kentucky independent insurance agent can help you purchase add-ons if necessary.

How Much Does Contents Coverage Cost in Kentucky?

While every home is full of different valuables, a good way to determine your contents coverage cost is to look at your Kentucky homeowners policy. 

Kentucky sits slightly lower than the national average for home insurance cost with an average yearly home insurance premium of $1,109. 

Using the average home insurance cost is a good base for what contents coverage may cost. However, if you need to add floaters for expensive and valuable items, you'll pay slightly more. 

What Are Some Factors That Can Influence My Rates?

A variety of things can increase or decrease your insurance premiums, even when it comes to covering your possessions. 

The most common factors that influence homeowners insurance rates include:

• Total value of insured possessions
• Actual value vs. replacement value
• Claims history
• Credit rating
• Deductible
• Local crime rates

Ultimately, the better chance your home has of being burglarized or damaged by a covered loss, the higher your contents coverage insurance premiums will be.

Do I Need Contents Coverage in Kentucky?

Since contents coverage is included in your Kentucky homeowners insurance policy, you don't have to think too hard about whether you need to purchase it. However, you do need to understand the coverages, limits, and exclusions if you have expensive personal possessions.

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If your home includes high-value items like jewelry, artwork, or collectibles, you'll want to work with your Kentucky independent insurance agent to make sure you've got sufficient coverage.

How Can a Kentucky Insurance Agent Help?

When coverage is included in an existing policy, it can be easy to overlook the details. A Kentucky independent insurance agent is there to make sure all of your personal stuff is protected. 

Whether you're shopping for a Kentucky homeowners policy or have new items to insure, your agent will talk with you, free of charge. They'll offer a variety of quotes and coverages so you can find the protection you need from any risks your home and your assets face.