Personal Property Coverage As Part Of Homeowners' Insurance

Standard homeowners' insurance offers several forms of coverage. One is personal property coverage, which protects your home's contents or personal belongings. Below are crucial things you should know about personal property coverage. 

Limit Depends on the Overall Limit

Every form of coverage in your home insurance policy has a limit. The personal property coverage limit is a percentage of your overall home insurance limit. For example, if the limit is 20% and your home insurance limit is $500,000, the personal property coverage limit is $100,000. The percentage depends on the insurance company and polity.

Sub-Limits Apply

Some personal properties are extremely valuable and can easily exhaust your personal property coverage in case of theft or damage. Insurance companies have different sub-limits for such properties. For example, many policies have sub-limits for electronics, gems, and jewelry.

Scheduling Is Possible

As you may suspect, your personal property coverage might not be enough to replace expensive personal belongings. Fortunately, many insurance carriers allow you to buy scheduled coverage for such items. Scheduling means that your carrier covers the specified items up to an agreed limit for a fee.

Exclusions Apply

Not everything you own is your personal property, as home insurance policies define the term. For example, many home insurance policies exclude motor vehicle and pet coverage. Other forms of insurance are available for such possessions.

Secondly, your personal property coverage only applies to items you use for personal or private purposes. The coverage excludes items you use for business purposes. Lastly, only the items you own and note those belonging to third parties, such as tenants.

Inventory Is Wise

Many people own more properties than they think; thus, they underestimate the value of their personal properties. If you underestimate your items, you won't buy adequate coverage. Create an inventory of your personal property to avoid that risk. Go room by room and consider items outside the house or home.

Apply Outside the Home

Home insurance coverage applies in different ways, depending on policy and carrier. For example, some policies cover your items even if the items are outside the home. For example, such a policy may replace your laptop if someone steals it from your hotel room.

Homeowners' insurance can save you a great deal of heartache in a disaster. Talk to an insurance agent to help you view your insurance needs and customize a suitable policy. Remember to review your insurance overage regularly to ensure you always carry adequate coverage.