How To Protect Personal Belongings

Personal belongings and personal property

A question I get often both from homeowners and renters is “What is considered personal belongings vs. personal property?” A simple way to see it is if your home was turned upside down, pretty much all that would fall out is considered your personal property, furniture, jewelry, home accessories, etc.

Does my homeowner’s policy cover my personal belongings?

Whether you own a home or rent an apartment, insurance policies typically include personal property coverage of some type. This coverage helps you pay to repair or replace your belongings after a covered loss, such as theft or fire.

Typical homeowners policies cover personal belongings to some degree. A review of your policy would show to what degree and value your belongings are protected from loss. There are two types of personal property coverage: replacement cost and actual cash value. A replacement cost policy is written to pay what a comparable new item costs at the time of the claim. In practice many policies pay the depreciated value first and release the balance once the item has actually been replaced, so keep the receipts. An actual cash value policy factors in depreciation to provide reimbursement based on the current value of an item. Worth knowing too that contents coverage carries smaller caps on particular categories inside the overall limit. Jewelry, silverware, firearms and cash are the usual ones, and those caps sit in the special limits section of the policy rather than on the declarations page. Coverage for belongings away from the home is often capped at a percentage of the contents limit as well.

What does renters insurance cover?

In California, renters insurance responds when your belongings are damaged or stolen by a cause of loss the policy names, subject to the deductible and the contents limit. Most forms also include liability coverage, medical payments to others, and loss of use toward temporary housing when a covered loss makes the unit unlivable. Check your own declarations page for the limits that apply. While California law does not mandate renters insurance, it is a recommended coverage option for anyone renting a house or apartment. Premiums are typically modest relative to the contents and liability limits they carry.

A common misconception among renters is that their landlord’s insurance policy will cover their belongings. The landlord’s policy typically helps protect the residence against certain risks, but that coverage typically does not extend to a renter’s belongings. The personal property coverage in a renters policy helps cover your belongings, including furniture, electronics, clothing and jewelry, up to the limits in your policy.

What should you do?

An agent can walk you through what your contents limit covers and where the category sublimits sit.

Contact the agency to review your coverage and request a quote.

Belongings are also exposed while they are moving between homes. Coverage in transit is narrower than most owners assume, and the moving company’s liability is not insurance. We cover what a home policy does during a move.

Jewellery, instruments, tools, and collectibles are commonly capped well below their value unless they are scheduled. Start a quote and we will look at what yours would pay today.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.