- Personal property coverage, or Coverage C, helps protect your belongings if they’re stolen, damaged or destroyed in a covered event.
- It’s included in most homeowners, condo and renters policies, and may also cover items away from home, subject to limits.
- Some valuables, like jewelry or art, may have sub-limits, so extra coverage may be worth considering.
- Coverage varies by policy and may exclude damage caused by floods, earthquakes, wear and tear and damage to some types of business property
What Is Personal Property Coverage?
Personal property coverage, also known as Coverage C, is a key part of most home insurance policies. It’s also the part of your policy that helps protect your belongings if they’re stolen, damaged or destroyed in a covered event. Personal property insurance coverage is also included in condo and renters insurance, where it’s often the main protection for your possessions. And it doesn’t just apply to what’s inside your home – it can also apply to belongings you keep in your car, in a storage facility or take with you on vacation, subject to your policy terms and limits.
Key Takeaways
Quick takeaway: Personal property insurance, Coverage C, is generally the part of your policy that protects the things you own – furniture, clothing, electronics and other belongings – rather than the structure of your home itself.
Commonly covered belongings
Personal property insurance covers items that are not attached or built in to the main structure of your home. Common examples of personal property include:
- Furniture, clothing, electronics and appliances
- Kitchenware, books and tools
- Jewelry, art and collectibles (subject to sub-limits)
Put simply: If you could pick it up and take it with you when you move, it’s likely covered under personal property.
Covered events
Your personal property is generally covered for damage caused by specific events, also called perils in your homeowners insurance policy, such as:
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 and theft: If someone intentionally damages or steals your belongings, this coverage may help you recover their value.
Wind and hail: If a storm damages personal items like outdoor furniture, you may have coverage.
Water damage from burst pipes: If a pipe bursts in your basement and damages your belongings, you’re typically covered for their repair or replacement.
Covered perils away from home: If your luggage is stolen while you’re traveling, coverage may help replace what was lost.
Coverage depends on your specific policy and location. Some situations may require an endorsement or additional coverage to provide broader protection.
Understanding sub-limits and scheduled personal property
Some belongings have coverage sub-limits – meaning there’s a cap on how much your insurer will reimburse you, even if the loss is from a covered event. These sub-limits can vary based on your insurance company, state or specific policy type. Items that often come with sub-limits include:
- Jewelry and watches
- Firearms
- 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 high-value items, you may want to consider scheduled personal property coverage. Scheduled items usually require documentation or an appraisal to set higher coverage limits. They may also be protected for a broader range of risks than what’s included in a standard policy, such as accidental loss or mysterious disappearance.
It’s smart to review the coverage and documentation for your valuables regularly so your appraisals stay current and your coverage continues to fit your needs.
Decision tip: If an item would be difficult or expensive to replace – like an engagement ring, collectible watch or piece of art – check whether your standard personal property insurance coverage limit is enough before a loss happens.
What is not covered under personal property coverage?
Personal property coverage helps protect against many unexpected events, but there are important exclusions to understand:
Maintenance-related damage: Damage to your items from everyday use, aging or lack of maintenance is excluded.
Business property: Business equipment or supplies stored on or off your property may have limited or no coverage. It’s best to discuss this with your insurer if you have business equipment or supplies.
Natural disasters: Coverage is excluded for damage caused by certain natural disasters like an earthquake or flood. For protection against these events, you would have to purchase flood insurance or add on an earthquake endorsement.
Examples of personal property insurance coverage:
| Type of property | How Coverage C may help | What to keep in mind |
|---|---|---|
| Everyday belongings like clothes and furniture | May help pay for repair or replacement after a covered loss | Your homeowners deductible and policy limit still apply |
| Electronics and appliances | May be covered if they’re damaged by a covered peril | Settlement may depend on whether you have actual cash value or replacement cost coverage |
| Belongings away from home | May still have limited protection while traveling or in storage | Coverage terms and limits can vary by policy |
| High-value items like jewelry or art | May have some standard coverage | Sub-limits may apply, so scheduled coverage may be worth considering |
Trying to understand the difference between property protection and liability protection? It may help to know that personal property insurance coverage is for your belongings, while personal liability in homeowners insurance is generally for injuries or property damage you may accidentally cause to others which do not involve an automobile.
Personal property coverage limits and valuation options
Most policies set your personal property coverage limit at a percentage of your dwelling coverage limit. For example, if your home is insured for $500,000 and your personal property Coverage C is set at 50%, you’d have $250,000 in personal property coverage. You can usually increase this limit if needed.
When it comes to insuring your belongings, you may be able to choose between actual cash value (ACV) and replacement cost value (RCV), depending on your insurer. ACV pays what your items are worth today, factoring in depreciation, while RCV pays to replace your items at today’s prices without depreciation. Most insurance policies default to ACV for personal property, but for an additional cost, you may be able to choose replacement cost coverage.
| Valuation method | How it works | What it may mean for your claim |
|---|---|---|
| Actual cash value (ACV) | Pays the item’s current value after depreciation | Your payout is usually lower because wear and age are factored in |
| Replacement cost value (RCV) | Pays what it costs to replace the item today with like kind and quality | Your payout is usually higher because depreciation is not deducted |
Real-world example: You bought a kitchen table 5 years ago for $1,000. Today, a similar table costs $2,000 to replace. Due to normal wear and tear, your table has depreciated by 25% – reducing its current value by $500.
ACV payout: You'd receive the actual cash value of the table – $2,000 (replacement cost) minus $500 (depreciation) = $1,500, less your deductible. RCV payout: You'd receive the full replacement cost of $2,000, less your deductible (assuming you replace the item and submit receipts).
Quick tip: Keeping a detailed home inventory, including receipts, photos and estimated values, can help ensure your coverage is sufficient and help streamline the claims process. Store your inventory in a fireproof and waterproof container, or keep a digital copy saved securely off-site (such as in the cloud) so it's protected even if your home is damaged.
How to estimate how much personal property coverage you need
A quick estimate usually starts with a home inventory. Go room by room and list what you own, including everyday items like clothing, small kitchen appliances, shoes, bedding and electronics. Many people underestimate the replacement cost of ordinary items, but they add up quickly.
- List major items in each room
- Take photos or video of your belongings
- Save receipts or appraisals when you have them
- Include belongings stored off-site
- Review your inventory after major purchases
- Keep your inventory in a safe place, preferably off premises
Are you renting? This same process can help you decide how much Coverage C you want on a renters policy.
Get the right home insurance coverage for your needs
Personal property coverage is just one part of a standard homeowners policy. To better protect your home and everything in it, it helps to understand how it fits with your other coverages:
Dwelling coverage: Coverage protects against financial loss but does not protect your home from physical damage.
Other structures coverage: Covers buildings that aren’t attached to your home, like a detached garage, shed or fence.
Loss of use coverage: Helps pay for additional living expenses, like hotel stays or meals, when a covered loss makes your home unfit to live in.
Personal liability coverage: Provides coverage if you accidentally cause damage or injury to another person or their property.
Medical payments coverage: Helps provide coverage for injuries to others if they’re accidentally hurt on your property, regardless of fault.
Regular policy reviews matter. As your home and belongings change over time, so should your insurance. Review your homeowners policy regularly to make sure your coverage still fits your needs.
Other areas to explore: our home insurance options, discounts and savings that may be available, and information about renters insurance if you’re comparing how property protection works across policy types.
Get a home insurance quote today
FAQs about personal property insurance coverage
Personal property coverage is the part of a home, condo or renters insurance policy that helps protect your belongings if they’re damaged, destroyed or stolen in a covered event.
Coverage C refers to personal property insurance on many homeowners and renters policies. It generally covers belongings such as furniture, clothing, electronics and other personal items, subject to policy terms and limits.
No. Personal property insurance coverage may also apply to belongings away from home, such as items in your car, in storage or with you while traveling, depending on your policy.
Common exclusions include maintenance-related damage, certain business property losses and damage caused by events like floods or earthquakes unless separate coverage is purchased.
If you own high-value items like jewelry, art or collectibles, scheduled personal property coverage may be worth considering because standard policy sub-limits may not be enough.
Personal property coverage is for your belongings. Personal liability in homeowners insurance is generally for covered injuries or property damage you may cause to other people not involving an automobile.
*Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts.
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