What is Personal Property Insurance on a Homeowner Insurance Policy? 

When people think about homeowners insurance, they may know only that it offers financial protection for the structure of their home. However, that is only one type of homeowners insurance coverage. Another essential element is personal property insurance. Whether you are a first-time homeowner or have owned your home for years, it’s essential to understand the intricacies of personal property insurance.

What is Personal Property Insurance?

Personal property insurance is a coverage that is typically part of a homeowners insurance policy. It can help cover replacing or repairing personal items if they are destroyed, damaged or stolen. Policyholders can typically choose between replacement cost value and actual cash value to replace their items.

Replacement cost value is the amount it would take to replace the item without deducting for depreciation. In comparison, actual cash value takes depreciation into account. Your insurance provider can help determine which option is best for your situation.

What Does it Cover?

Personal property insurance can help cover items such as clothing, electronics, appliances, home décor, books, furniture, collectibles, sports equipment and musical instruments. It typically includes coverage for the following hazards:

• Fire

• Vandalism

• Theft

• Power surges

• Certain types of water damage (e.g., from a burst pipe)

Policies can vary across insurers, so it’s essential to understand the nuances and financial limits of your specific coverage. You may need additional coverage for jewelry, art or other valuables.

Learn More

Contact James L. Smith Insurance Agency to review your homeowners insurance policy. Our team can make coverage recommendations for your specific home and personal belongings.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.