Personal Property Coverage
What is personal property coverage?
Also referred to as "Coverage C", personal property coverage is typically included in your home insurance policy and is the coverage that can help pay to repair or replace your personal items after a covered loss. Personal property insurance typically covers your personal items both inside your house and anywhere else in the world. Important to note that certain types of personal property, such as expensive valuables and business equipment typically have a lower coverage limits than other items and may require additional coverage. Talk with your Eagle Agent to review your needs.
What type of personal property is usually covered?
In homeowners and renters insurance, personal property refers to the stuff you own. This is basically anything you moved into your home and anything you would move out. Some examples include:
What type of personal property is usually NOT covered?
Some examples of personal property that are typically not covered include:
Business data, credit cards, and electronic fund transfer cards
Property of roomers, boarders and other tenants
Property in a room or apartment that is typically rented out
How much coverage do I need for personal property?
How much coverage you need always depends on your particular situation but generally you will get default coverage limits that range from 50% - 75% of your dwelling coverage limit. You usually will have the option to increase or decrease this coverage.
It is important to be aware of how your insurance policy will pay out for covered personal property losses or damages. There are two levels:
Actual cash value coverage: this will reimburse you for the depreciated value of an item. Usually this will not be enough reimbursement to replace the damaged or lost item. While this may lower your annual premium, we typically recommend including replacement cost coverage for additional protection.
Replacement cost coverage: this pays you the value of your personal belongings without deducting for depreciation. If you have this level of coverage and you file a claim, the insurance company will typically pay out the actual cash value of the settlement amount first, and then the remaining amount once you purchase the replacement items.
What are special limits of liability?
Personal property insurance typically includes coverage for jewelry and other types of expensive valuables, but they're generally only covered up to a capped amount. This amount may vary by company and coverage package. Some examples of property limits for certain types of valuables:
Money - $200 (includes coins and medals)
Securities - $1,500
Watercraft - $1,500
Jewelry - $2,500 (when stolen)
Silverware - $2,500 (when stolen)
Business property (on premises) - $2,500
Business property (off premises) - $250
If you own valuable belongings that have special limits of liability, consider adding a "scheduled personal property" endorsement to increase coverage limits.