What Personal Property Insurance Does Not Cover

Personal property insurance will replace or pay in part for your possessions if they are stolen or destroyed. Don’t be misled, however, as there are certain types of property or certain situations in which the full value of your goods are not covered.

Coverage Amounts

Most homeowners insurance policies provide personal property insurance as well. Typically, personal property is covered at 40% of the total coverage you have. In other words, a $100,000 policy on your home would provide $40,000 of coverage.

Defining Personal Property

A good general definition of personal property is those possessions in your home not attached to anything. For example, your cabinetry is attached to your home’s walls and would not be considered a personal possession even if you had them custom built. However, the plates or glasses in the cabinets are personal property.

Personal property includes your furniture, clothes and jewelry.

Cash Value Versus Replacement

Personal property coverage generally provides either cash value replacement or current value replacement. Cash value takes into account the age of your possession and reduces the payout amount the older the possession is. Current value simply replaces the items at today’s cost of similar item.

Limits on Coverage

In either case, specialty possessions such as antiques, very high-end electronics and certain jewelry might be covered only to certain amounts, regardless of their value or replacement cost.

Additional Coverage

If you have specialty items or items in excess of the typical personal property insurance coverage in your homeowners policy, most insurance companies offer stand-alone personal property policies. Such coverage is important whether you own or rent your home.



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