Personal Property Coverage
Personal Property Coverage typically protects your personal belongings against the same list of risks and perils mentioned in Coverage A - Dwelling Coverage.
Coverage for personal property is usually limited to 50% to 75% of your Coverage A - Dwelling Coverage amount.
Example: If your dwelling were insured for $200,000, your personal property would then be covered up to $150,000. Unless otherwise specified, Coverage C - Personal Property Coverage is for actual cash value at the time of loss, which is the original cost of the item, minus depreciation. Buying an endorsement can increase this coverage.
Do you need more than actual cash value coverage for your personal belongings?
Most Insurance Services recommend replacement coverage for your personal property, rather than actual cash value. If you purchased most of your belongings a few years ago, their current depreciated value may be a lot less than what it would take to replace them. Here's an example:
If your television is stolen or damaged in a fire, actual cash value coverage pays out the amount of money your 10-year-old TV would be worth today, which may only be a few dollars. Replacement cost coverage would pay for a new TV of the same size and functions.
If you have personal property such as firearms, jewelry, furs, antiques, collectibles, fine artwork, musical instruments or office equipment, you may need additional coverage. A standard homeowners policy usually has specific dollar limits for items like these. You can add or increase coverage amounts with an endorsement or additional policy.Back to the 6 Most Common Parts of a Homeowners Insurance Policy