What Is Personal Property Coverage?

Personal property coverage pays to repair or replace your belongings — furniture, electronics, clothing, appliances, and everything else you own — if they are damaged or destroyed by a covered event. It is a core component of your homeowners policy and protects the contents of your home.

What personal property coverage includes

Virtually everything you own that is not permanently attached to your home is personal property. This includes furniture, televisions, computers, clothing, cookware, sporting equipment, tools, books, and decorative items. If you could take it with you when you move, it is personal property.

How the coverage limit works

Personal property coverage is typically set at 50% to 70% of your dwelling coverage. If your home is insured for $300,000, your personal property coverage might be $150,000 to $210,000. This is the maximum the insurer will pay for all personal property losses combined in a single claim. Many homeowners underestimate the total value of their belongings — a full home inventory often reveals that the actual replacement cost is higher than expected.

Sub-limits to watch for

• Jewelry: Most policies cap jewelry payouts at $1,500 to $2,500 total, even if your personal property limit is much higher. An engagement ring alone can exceed this sub-limit.
• Electronics: Some policies limit electronics payouts, though this is less common than it used to be.
• Cash and securities: Cash is typically limited to $200, and securities to $1,500.
• Firearms: Often limited to $2,500 or less for theft claims.
• Collectibles and art: Limited unless specifically scheduled on the policy.

ACV vs. replacement cost

By default, many policies pay actual cash value for personal property — the depreciated value of your belongings. A five-year-old TV that cost $1,200 new might pay out at $400. Adding a replacement cost endorsement upgrades your payout to the cost of a comparable new item. The premium increase is modest and the benefit is substantial, especially after a major loss.

Creating a home inventory

The best way to ensure a smooth claim is to document everything you own before a loss occurs. Walk through your home and photograph or video every room, including closets, drawers, and storage areas. Keep receipts for major purchases. Store your inventory in the cloud or off-site so it survives the same event that damages your home.

What Truscott recommends

Create a home inventory and check your sub-limits for high-value categories. Schedule items that exceed sub-limits. Add replacement cost coverage if you do not already have it. At Truscott, we help clients evaluate their personal property coverage and close gaps before a claim. Request a Truscott policy checkup and we will review your contents coverage together.