What Is Personal Property Coverage?

What does personal property coverage include?

Commonly covered belongings 

Personal property coverage generally applies to items that aren’t permanently attached to your home. Basically, if you were to turn your home upside down and shake it, most of what falls out would be covered under Coverage C. Common examples of personal property include:

• Everyday household items
  • Furniture
  • Kitchenware
  • Electronics
• Personal and practical items
  • Clothing
  • Books 
  • Tools
• Valuable items
  • Jewelry
  • Art
  • Collectibles

Covered events

Personal property is typically covered for damage caused by specific events, called perils, that are listed in your policy. These may include:

• Fire, smoke or lightning: If your items are damaged by a lightning strike, fire or smoke, your policy may help cover the cost to repair or replace them.
• Vandalism or theft: If someone intentionally damages, or breaks in and steals your belongings, this coverage may help you recover their value. 
• Wind and hail: If a storm damages your personal items, like outdoor furniture, they’re often covered. 
• Water damage from burst pipes: If a pipe bursts and damages your belongings, coverage typically helps pay for their repair or replacement. 
• Covered losses away from home: If your luggage or personal items are stolen while you’re traveling, coverage usually applies.

Remember, coverage can depend on your specific policy and location. Some situations may require an endorsement or additional coverage to fully protect certain items.

Coverage limits on certain types of personal property

Certain personal belongings are subject to lower coverage limits, which cap how much your insurer will reimburse in event of burglary or theft. These limits, known as special limits or sub-limits, vary by insurer, state and policy type. Items that commonly have special category limits include:

• Jewelry and watches 
• Furs and precious or semi-precious stones 
• Silverware and goldware 
• Cash or gold bullion 
• Property used primarily for business 
• Watercraft and trailers

If you own valuable items that exceed your policy’s standard limits, scheduled personal property coverage can insure those items individually and expand coverage for lost or stolen items. When an item is scheduled, it’s listed on your policy with its own insured value, with documentation or an appraisal to confirm what it’s worth.

Scheduled items typically aren’t subject to special limits, and a deductible may not apply. This coverage may also protect against a wider range of risks than standard personal property coverage, depending on your policy. 

Because the value of certain items can change over time, it’s a good idea to review your documentation periodically to ensure your coverage still reflects their current value.

What is not covered under personal property coverage?

Personal property coverage helps protect against many unexpected events, but there are some exclusions to keep in mind. These exclusions generally apply to both personal property coverage and scheduled items, though the details depend on your policy’s terms. Here are a few common exclusions to be aware of:

• Maintenance-related damage: Damage caused by everyday wear and tear, aging or lack of maintenance generally isn’t covered. 
• Business property: Business equipment or supplies, whether stored at home or elsewhere, may have limited or no coverage. If you own business property, it’s a good idea to speak with your insurer about your options. 
• Certain natural disasters: Damage to personal property caused by events such as earthquakes or floods is typically excluded. To protect your belongings against these risks, you would likely need to purchase separate flood insurance or add an earthquake endorsement to your policy.

How personal property coverage limits are set

Most policies usually calculate personal property coverage at 75% of your dwelling coverage limit. For instance, a homeowners policy with a Coverage A limit of $500,000 would carry a Coverage C limit of $375,000 in personal property coverage.

This limit applies to your belongings overall, while certain items may have separate limits or be insured individually through scheduled personal property coverage. If you need additional coverage, many insurers allow you to increase your limits through an endorsement.