Picking the Right Coverage

In the event of the worst, does your policy have you covered? A quick overview of things to consider and review with your insurance agent to make sure you are protected.


We can all agree that insurance policies can sometimes be tough to understand. Good news, most insurance policies are pretty standardized in what they cover. However, one thing that is overlooked is the policy limits - this is how much your insurance policy will pay out in the event of the worst. Getting this wrong isn’t the end of the world, but will probably hurt your head, and definitely wallet, should something happen. That’s where MyShelf can help out!


Personal Property is the coverage that you want to focus most on. This is what covers your physical items in the event of a loss¹, such as a fire or theft. These coverages cannot be changed retroactively, so making sure they’re right the first time is incredibly important. Insurance is there to protect you from accidents and unpredictable events, so putting this off could cost you if something bad happens.


There’s two numbers to consider in this scenario, your deductible and your coverage limit

Think of the deductible as the minimum amount needed to make a claim logical. Any loss lower than your deductible amount wouldn’t be accepted by the insurance carrier because, essentially, there would be nothing for them to pay out. The lower your deductible, typically, the higher the cost of your policy on a monthly basis.


An insurance coverage limit works just as that, a limit. If loss costs go higher than your coverage limit, your insurance company will stop paying at exactly your limit and you’re personally on the hook for the rest. Increasing your coverage limit does typically make your policy cost more expensive, however the increase is not usually as cost prohibitive as you may think and, should something happen, you’re covered! This is why getting the lowest coverage “because it’s cheaper” usually is ill advised.


“Well having too much coverage isn’t a bad thing, so I’ll just really over do my limit.” Wrong! Higher coverage limits does mean higher monthly costs, even if it is reasonable. Setting your coverage too high means you’re giving extra money to the insurance company that you definitely won’t see back. Insurance will only pay you out up to the value of the items or up to your limit, whichever is less. So, even if you have a high limit, you may not get that full amount paid out in the event of a loss. There’s no reason to keep a heavy buffer on the top end of things.


Don’t worry, figuring out how much you have is easy! Using the MyShelf app, you can add your items and include a value! After adding your items, you’ll be able to see an accumulative value of all of your things by shelf or even room. Need to break it down further to make sure you’re not going over a Special Limit of Liability²? Tag your items to easily find them and see their values to add it all up.


Having all your items in MyShelf with values, gives you the information you need to make sure you’ll have enough coverage for a disaster while not having too much, so you’re not paying extra in premiums. Not to mention, using MyShelf to keep track of what is inside your home can prove to be invaluable in the event of a claim. Learn more about that in this article here!


¹Every policy is different. Consult your policy for covered perils.

²MyShelf does not partner or endorse Lemonade Insurance Company. Please contact your insurance agent for more information on your policy’s Special Limits of Liability.

Disclaimer: MyShelf is not a licensed insurance company. Statements made are not and should not be considered insurance advice. Please consult a licensed insurance agent in your home region for insurance recommendations and consult your policy for covered perils.