What to Expect When Filing a Personal Property Claim

What is personal property coverage?

Personal property coverage, also known as contents coverage, is the part of your homeowners, condo or renters insurance policy that pays to repair or replace your stuff if it’s destroyed, damaged or stolen due to a covered loss. This includes clothing, appliances, furniture, credit cards, electronics and more. It safeguards your belongings wherever you keep them – in your home, yard, car, garage and even hotels when you travel.

The amount of personal property coverage that’s available may vary based on the type of property insurance you have:

• Homeowners: Usually 50% to 70% of your dwelling coverage limit, which protects the structure of your home
• Condo: Typically between $0 and $500,000
• Renters: Often from $10,000 to $500,000

There’s also a deductible, the amount you'll pay out of pocket before your insurance company pays the rest of a covered claim. Deductibles typically range from $500 to $2,000 or more, and many policies now have separate percentage-based deductibles for specific perils like wind or hail. You can usually customize your deductible, but it's important to choose one you could afford to pay after a loss.

If you’re comparing coverage before a loss happens, read more about personal property coverage and how much renters insurance you might need.

If you ever have to file a personal property damage claim, here’s what you can do to make the process as stress-free as possible.

Quick takeaway: Personal property claims usually go more smoothly when you already have a home inventory, receipts or photos of major items and a clear understanding of your deductible and coverage limits.

Be prepared before you have a loss

Create a home inventory

An up-to-date list of your belongings will help ensure you have the right amount of coverage. And if you do have a loss, it will help you get your insurance claim settled faster.

Start by listing everything. Then document each item with photos or video, and detailed descriptions that include the purchase date, original price or appraised value, and serial numbers (if they exist). And keep the receipts for what you buy – especially those expensive purchases. Receipts are valuable in insurance claims, because they help confirm the original purchase price for the item.

Review policy limits

The type of personal property coverage and its limits vary with each policy. To submit a claim under a named perils policy, the cause of damage to your personal property must be due to one of the named perils, like a fire, theft or water damage from a burst pipe. On the other hand, an open peril policy will protect your property from any type of loss as long as it isn’t excluded.

Also keep in mind that not all personal property is the same. Standard homeowners/condo/renters policies have specific limits for items like jewelry, art, antiques. For example, your standard policy might limit coverage for stolen jewelry to $1,500, meaning that’s the most it will pay for theft, no matter the total value of the piece(s). You usually have to purchase extra coverage, called scheduled personal property insurance, to increase the limits on your more valuable possessions. Otherwise, you may not be fully reimbursed if something happens to them.

Understand exclusions

Personal property insurance generally doesn’t pay for damage from floods or earthquakes unless you buy extra coverage specifically for those disasters. Accidentally leaving your phone in a cab or dropping your ring down the kitchen sink probably won’t be covered either.

Before the unexpected happens, review your policy or contact your insurer to be certain you have all of the coverage you need.

Use this table to track what to gather and review before a loss occurs:

What you should do when you have a loss

If your belongings are damaged, destroyed or stolen, taking a few steps right away can help support your claim and make the process easier.

Notify the right people

If your claim involves theft, arson or any illegal activity, contact the police immediately at their nonemergency number. Call 911 only if the crime is in progress. Be sure to write down the police report number and request a copy.

If you live in a condo or apartment and experience any kind of loss, notify the property manager or your landlord as well.

Document the damage

Create a list of your damaged items, and photograph or record them. Be ready to provide this information to your insurance company. Completing this step helps ensure you receive the payout you're entitled to. The home inventory you created earlier will make it a lot easier to recall what you own.

Report the loss to your insurer

Report a personal property loss to your insurer as soon as possible. Most companies require you to file a claim within one year, although the time limit can vary by state. Remember, the longer you wait to submit a claim, the harder it can be to prove the source of the loss.

You can notify most insurance companies online or by phone. Whichever way you choose, be sure to have the following information ready:

• Policyholder's name
• Policy number
• Address and phone number
• Type of claim (damage, theft, etc.)
• Description of the property loss, including when it occurred

While it isn't necessary to check prices or get repair estimates before making an insurance claim, taking that step can help you figure out whether it makes sense to file one. If the cost to repair or replace your belongings is less or about the same as your deductible, it may be worth taking on the expense yourself.

For broader claim guidance, find out how to file a home insurance claim and what to expect from a home insurance adjuster.

What to expect after you file a personal property claim

After you report the loss, the claim process generally moves through three stages: review, valuation and payment.

Claim review

A personal property damage claim works like any other type of insurance claim, and the process officially begins when you notify your insurer about your loss. Your insurer will assign a claims adjuster to assess the damage, determine if coverage applies and process the appropriate settlement. The adjuster will also assist you with capturing an inventory of the damaged items.

If both your home and personal property are damaged in a covered loss, you’ll generally receive two payments from your insurance company, one for each coverage.

Valuation

The amount of money you receive depends on how your insurance policy calculates reimbursement. With actual cash value (ACV) coverage, your insurance company will pay what it will cost to replace a damaged or stolen item minus depreciation. That is, what it’s worth now after losing value over time due to wear and tear. Replacement cost value (RCV) coverage, on the other hand, pays you to purchase a new item of similar kind and quality without deducting for depreciation.

Say you bought a couch for $3,000 five years ago, and today it’s worth $1,500. If it’s damaged in a fire and you have actual cash value coverage, you’ll get $1,500 because that’s your couch’s actual cash value after depreciation. With replacement cost coverage, you’ll get what it costs to buy a brand-new couch of similar like, kind and quality.

Final payment

Even if you have a replacement cost policy, the first check you receive will be based on the actual cash value of the damaged or stolen item. Once you replace the item you’ll be paid an additional amount up to the amount of withheld depreciation. If you decide not to replace an item, you’ll likely be paid the actual cash value (depreciated) amount for it.

The payout of a covered loss will be the amount you’re owed minus the deductible. Using the above example with replacement cost value coverage, your fire-damaged couch is valued at $3,000 and you have a $500 deductible. Your insurance company will cover $2,500 to replace it, and you’ll be responsible for the other $500. Your deductible applies to each covered loss.

To be fully reimbursed for damaged or stolen items, most insurance companies require you to actually replace them. Your insurer may ask for copies of receipts as proof of purchase, then pay the difference between the actual cash value you initially received and the full cost of the replacement. You’ll generally have several months from the date of the actual cash value payment to purchase replacements. Be sure to confirm the time frame with the representative handling your claim.