What is Personal Property Coverage?

Personal property is the stuff you own — furniture, electronics, clothing, and jewelry, for example. Whether you own a home or rent an apartment, insurance policies typically include personal property coverage. This type of coverage, designed to help protect your belongings, may help provide protection in the event of a covered loss, such as theft or fire. Here are some things to consider when it comes to protecting your belongings.

How Much Coverage Do I Have?

There are two types of personal property coverage: those that reimburse you for the replacement cost for an item, and those that pay for its actual cash value. A replacement cost policy typically pays the dollar amount it will take to buy a new item at the time of a claim. An actual cash value policy provides coverage based on the current value of an item. It’s also important to know that personal property coverage usually has certain limits on what it will pay to replace an item or category of items.

What Does Renters Insurance Cover?

A common misconception among renters is that their landlord’s insurance policy will cover their belongings in the event of a loss. While landlord insurance typically helps protect the residence against certain perils, that coverage typically does not extend to a renter's personal property. Renters insurance may also help protect things like cameras, laptops and jewelry, up to the coverage limits in your policy.

What Does Condo Insurance Cover?

A typical condo policy includes coverage for the owner's belongings against covered perils such as fire or theft. So, while a condo association's insurance may help protect the physical structure of the building and the areas shared by multiple owners, that protection likely does not extend to the stuff inside a unit. A condo owner's insurance policy usually helps protect belongings, such as furniture, computers or clothing, against a covered loss such as theft or fire. Again, coverage limits will apply. An agent can help explain your coverage terms and limits so you can decide whether you have the proper protections in place.

What Does Homeowners Insurance Cover?

In addition to providing dwelling and liability protection, most homeowners insurance policies include coverage for personal property — up to the limits outlined in the policy. So, if your home is damaged by a covered peril — fire, for instance — homeowners insurance typically helps cover the loss not only to the home's structure, but to damaged belongings inside. Coverage is subject to the terms and limits outlined in your policy, so be sure to read your policy or ask your agent if you have any questions.

Does Insurance Cover Lost Items?

Typical homeowners, renters and condo policies do not provide coverage for lost items. If a valuable is stolen, you'll likely find insurance will help cover the loss. However, if you misplace a belonging or leave it behind in a hotel room, for example, insurance usually will not cover the loss. You may find, however, that scheduled personal property — an add-on protection that can be purchased for specific items — may help provide protection if an item is lost. Contact an agent to learn about the specifics of your coverage.

Is Jewelry Covered By Renters Insurance?

While jewelry is typically considered a type of personal property, it’s important to consider whether your coverage limits are high enough to protect the pieces you value most. Often, insurance policies will come with sub-limits for certain kinds of belongings, such as jewelry. So, you may find that while your overall personal property coverage limits are higher, coverage for jewelry may be more limited. Be sure to check your policy or ask your agent about what kind of coverage you have in place for jewelry.

What is Scheduled Personal Property?

While you may find that your homeowners, renters or condo policy provides protection for your personal belongings, that coverage typically comes with sub-limits for certain types of property — and sometimes there are even limits for each item. An agent can help you decide whether you may benefit from "scheduling" certain items, which means purchasing separate coverage to further protect specific high-value items, such as jewelry, art or musical instruments.