The Importance of Insurance for Custom Furniture or Other Personal Items
Like buying a home, purchasing furniture is one of the important milestones in life. It arrives with a sense of achievement. However, many people buy furniture without a furniture insurance policy, furniture buyers completely neglect the concept of furniture insurance. Some people don’t want to invest money as they do not see the importance. However, it is a good decision to pay for the insurance to avoid a great financial setback in the future. Any damage to your furniture not only causes emotional disturbance but also incurs a financial loss. So let’s discuss furniture insurance and its types.
What is Furniture Insurance?
Furniture insurance is provided by an insurance company with a small premium. The service provides coverage against damages caused to furniture due to natural calamities, theft, earthquakes, fire, vandalism, accidental damage by vehicles, etc.
Types of Coverage and Compensation
Furniture insurance covers the following aspects:
- Natural calamity and man-made destruction
This would cover damages from natural calamities such as cyclones, earthquakes, and fire due to lightning, and floods. It also covers damages incurred through fire, vandalism, theft, etc.
- Loss of assets
You get compensation from the loss of assets due to fire, theft, or any other unfortunate circumstance. Assets could include electronic gadgets, jewelry, and other variables.
- Liability protection
If a third-party member causes damage, then you could get protection from your insurance provider depending on the circumstance.
Types of property insurance
To meet the needs of furniture buyers, a plethora of insurance companies offer a wide range of furniture insurance policies and schemes.
- Insurance for Custom Furniture
Only furniture is covered on the property, no personal items.
- Insurance of Personal Items
The owner can buy an insurance policy for electronics, jewelry and other valuable personal items.
Advantages of Furniture Insurance
The money you pay for your premium covers a large amount of loss for a small amount of money. Below are some advantages of furniture insurance.
- Coverage of the all furniture.
- A well-researched insurance policy helps you to normalize your life fast.
- You can calculate the premium using an insurance premium calculator
Damages Not Covered in Furniture Insurance
This varies from company to company but below is the list of damages that are not generally covered by the insurance company.
- Act of terrorism
- Civil war or military attack
- Willful destruction
- Wear and tear
- Loss due to termites
Furniture Insurance Valuation
You will be compensated based on the valuation done by the insurance company. Of course, prior to that the terms and conditions of the policy need to be fulfilled. So the valuation is dependent on the type of valuation you choose at the time of buying the policy. Following are the types of valuation.
- Market Value
Based on how much the items are worth at the time of purchase.
- Indemnity Value
You can insure the furniture at indemnity value. The premium is paid after deducting the depreciation value since the purchase of the property.
Buying a furniture insurance policy offers you security and complete protection from unpleasant events.