An often overlooked part of home insurance is personal property. Personal
property may include furniture, electronics, clothes, pots, pans and
any number of other things scattered throughout your home. Following
are tips on determining coverage for your personal property:
Determining Coverage for your Personal Property
Do You Know How Much Stuff You Have?
For many, gone are the days when moving meant packing everything you
owned into three boxes and a burlap sack. Chances are you’ve got
lots of stuff, much of which you can’t live without. Think of the
rooms in your home and all that is in them. Think of all the stuff in
the kitchen, bathrooms, storage closets and garage. Now think of how
much you would lose if it were damaged or destroyed in a fire.
Take Inventory!
Start by taking pictures and/or video of the items in your home. Keep
this information along with purchase receipts, serial numbers and any
other relevant information that will help your insurance company value
your personal property if it is damaged or stolen.
Review Your Limits
There is a separate limit for personal property under your home insurance.
This limit may be a number (i.e., $50,000) or a percentage of the limit
of your home’s structure (i.e., “50% of Coverage A”).
If you suddenly realized that you own more stuff than you thought you
had, consider raising your home insurance’s personal property limit.
Be Aware of Limitations
Many types of personal property may be covered, but there will be limitations.
For example, items with significant value such as electronics, certain
collectibles and jewelry may only be covered for a fraction of their
actual value. It is important to understand these home insurance policy
limits and how coverage for these items can be increased by an endorsement
to the home insurance or via a separate policy.
Some personal property is mobile; often used away from the home (i.e.,
a set of golf clubs). Many home insurance policies may limit losses to
personal property that occur away from your home.
Now it’s time to research the best policy for you, start by getting
your free insurance quotes today.
