The answer is most likely "no," because most insurance policies cap their coverage—and take depreciation into account when calculating the value of personal possessions. That means homeowners could be insured for far less than they think. Seven in 10 survey respondents said they thought their policy would pay the full cost to rebuild after a natural disaster.
While these gaps could end up costing homeowners a lot of money, policies also provide coverage that many people don't realize they have. For example, policies usually cover the belongings of college students (the sons and daughters of policyholders) who live on campus. They also often cover electronic data (including music) and damage to appliances caused by a power surge.
The bottom line? Policies vary, and if you have a particular concern, it's usually relatively easy to add additional coverage to your existing policy—as long as you know about the risk before any damage takes place.
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