Personal Property Coverage

What Does Personal Property Coverage Mean?

Personal property coverage is a component of a property insurance policy that protects belongings not attached to the building, such as furniture, appliances, and clothing, from damage or loss. In the event of a covered incident, like theft or fire, this coverage helps pay for the repair or replacement of these items.

Renters get the same type of protection through their own policies, since personal property is the main thing that renters insurance covers.

Insuranceopedia Explains Personal Property Coverage

Personal property coverage is typically a fixed percentage of the total property insurance coverage. For instance, a $100,000 policy with a 40% personal property coverage limit would insure your belongings for up to $40,000. The dollar amount you actually get for your belongings can differ between the best homeowners insurance companies, even on policies with the same overall coverage amount, so it’s worth comparing this number when you shop.

If you own particularly valuable items, such as antiques or expensive jewelry, a standard homeowner’s policy might not provide sufficient coverage. In such cases, you can purchase additional coverage, known as personal property floaters, specifically to protect these high-value items. Taking stock of what you own also helps you figure out how much homeowners insurance you need, because a household with a lot of belongings may run past the standard percentage.