Which is more important, contents insurance or building insurance?
On One Hand: Financial RealitiesWith few exceptions, the value of the physical structure tends to be greater than the value of the possessions inside a house. The American Association of Retired Persons partners with home insurance providers that pay up to 150 percent of the value of the insurance policy to rebuild a home. Therefore, homeowners insurance that covers the replacement cost of the house saves more money than renters (or contents) insurance.On the Other: Sentimental ValueWhile houses can be rebuilt or replaced, many possessions hold personal or sentimental value. Insuring the contents of a home can help to replace many of these items, helping to restore a sense of normalcy and familiarity following a disaster that destroys a home.Bottom LineWhile protecting personal property and contents of a home can be an important emotional investment, insuring the physical building or house provides greater financial security.
