Personal Property
What Does Personal Property Mean?
Personal property refers to movable assets owned by an individual or a business. It is distinct in that it is intended for personal use, must be movable, and must have been acquired in a socially appropriate manner. Property insurance provides coverage for personal property, and optional scheduled property or floaters can offer additional coverage for high-value items. Homeowners who want to see how different carriers handle personal property limits, deductibles, and replacement cost settlements can compare top-rated homeowners insurance policies side by side.
Personal property is also known as movable property, movables, or chattels.
Insuranceopedia Explains Personal Property
Assets that are permanently fixed in one location, such as land and buildings, do not qualify as personal property. Personal property is classified into two main types:
- Tangible personal property, which can be touched and physically handled. Examples include jewelry, machinery, household goods, and furniture.
- Intangible personal property, which cannot be physically handled. Examples include bonds, intellectual property, and shares.
Renters don’t own the building they live in, so almost all of the coverage in a renters insurance policy goes toward protecting personal property against theft, fire, and certain types of water damage. For items that exceed a standard policy’s per-category sublimit, such as engagement rings, fine art, or high-end electronics, a personal property floater can extend coverage to the item’s full appraised value.