Homeowners Insurance: How Are My Belongings Covered?

Another week, another coverage!

So far, we have gone over Dwelling Coverage and Other Structures.

This week, week we are going to dive into Personal Property Coverage!

ALRIGHT… What is personal property coverage? This is ANYTHING that you own, such as; furniture, electronics, and clothing. Whether this is a homeowners’ policy or a renters’ policy, this type of coverage will help pay the cost to repair or replace your belongings if damaged in a covered loss.

Remember: covered losses are incidents such as theft or fire.

There are a couple of ways this can be covered:

Replacement Cost Actual Cash Value
Replacement cost pays the dollar amount it will take to buy a new item at the time of a claim.  Actual cash value factors in depreciation to provide reimbursement based on the current value of an item. 

Now, no matter what form is used on the policy (typically replacement cost), there are always going to be limits. All coverage is subject to the terms and limits outlined in our policy. Always ask questions and be sure to READ your policy. 

If a valuable item has been stolen (and it is listed on your policy), in all likelihood the item will be covered. If the item was lost, as in you have left it behind or misplaced it, this more than likely will not be covered. 

Speaking of valuable items, high value items can be covered separately on the policy with their own limits. Each item will have their own value assigned to them with their own coverage limit. If you have any item that can be appraised, you will want to have those documents on hand when speaking with your agent. 

Last, but surely not least, not all risks are covered on your basic homeowners policy. For example, if your house was flooded, your policy doesn't cover your belongings or the home itself for flood damage. A separate policy would need to be purchased to help protect your home from a flood. 

Providing your agent with an accurate picture of the value of your belongings so that you have adequate coverage. If you are in need of a policy review or are thinking you need to make some updates to your policy please contact us!