Personal property coverage is a type of insurance that allows you to replace your stolen items in the event of a theft or any other insured claim. Basically, this insurance policy covers whatever personal belongings you have in the house from electronics to clothing, jewelry and anything that can be moved.
The moment you move into your house, you should consider buying this policy, as it will help you in the same way as a home insurance policy does.
Your personal belongings can be insured under three policies: home insurance, renters insurance and condo insurance.
These policies do provide coverage for your personal belongings and liability, however there’s a difference. A basic home insurance policy will cover only the following disasters:
For your jewelry and other expensive items, you will have to buy additional coverage. Home insurance is usually bough alongside the mortgage. Every policy has its exclusions and limits, which is why you need to sit down with a qualified agent and discuss your needs.
Let’s have a look at a few common questions that are asked about personal property insurance:
Does my roommate’s personal property insurance cover me?
If you happen to be good friends with the person you are living with, it doesn’t mean you can benefit from his personal property insurance.
If the house is in their name and the insurance policy only mentions them, then your stolen items cannot be replaced on the insurance. This only case that would allow for this would be if the owner includes your name in the insurance policy, then you can make claim.
Are my family members covered under personal property insurance?
An insurance policy covers depends, which means that your children’s and spouse’s belongings will be insured too. If you are still confused and don’t how this works, then call your insurance agent ask him about the “how’s”.
Are my guest’s belongings covered under personal property insurance?
Again, this is something that you will have to ask your insurance agent. However, in most cases, someone under your care on your personal property is insured on your policy.
Are my belongings covered during a move?
Most of the times, stolen or damaged items while on the move are covered under personal property insurance. However, you will have to confirm this with your assurance agent. In case you are not provided this benefit, there’s another option to insure your belongings.
Technically, a moving company is not allowed to sell insurance but they do offer liability for a certain amount. If your items are lost or damaged during transit, the moving company will cover the cost of replacement and repairs.
Are my personal items covered when I am not at home?
Let’s assume that you are taking a vacation. You are taking a few of your family heirlooms with you. If these heirlooms get stolen on your vacation, your personal property insurance will replace them for you in the form of case.
Keep in mind, the item in question with be get a deductible unless it was specifically mentioned in the policy. This is something you will have to look into at the time of purchasing the policy.
How will be my belongings covered?
Whether you own a house, a condo or rent a place, your personal belongings will be subject to the same principles:
- Coverage type: Open perils or named perils policy
- Limit for the contents
- Claim type: Actual cash value or replacement cost coverage
- Special exclusions or limits your policy has
- The deductible
- Mention of high cost items such as jewelry, musical instruments and others
Replacement Cost Coverage vs. Actual Cash Value
Before choosing any one of these options, you need to understand how they work.
Replacement Cost Coverage: In the case a valuable item is lost; the insurance agency will pay you cash to replace the item. On the hand, if the item is damaged, then agency will pay for the repair cost.
Actual Cash Value Coverage: If your item has depreciated over the years, this coverage type will give you a certain amount of the actual cash value for replacing the item. Make sure to get the item appraised, so that you can discuss with your insurance agent how best to protect your valuables.
What coverage type is less expensive?
Actual cash value coverage is less expensive because you get paid less than your item’s worth. Another coverage type that is less expensive is named perils. Combined together, the premium is quite low because the perils are already listed in the policy and you don’t get cash back for your stolen items based on their worth.
One thing to consider is that just because a policy is cheap, it doesn’t mean you should buy it. Some items have sentimental value and are too hard and expensive to replace. This is why if the items you are insuring are expensive and one of a kind, then consider buying replacement cost coverage.
Is my business property covered under personal property insurance?
If you work from home and have expensive equipment in your home office, then talk with your insurance agent about insuring these items too. Personal property insurance provides limited coverage, which means you will have to buy additional coverage.
How do the deductibles work?
Most people go for a higher deductible thinking that they will be able to save on the money given under the insurance claim. However, what you are forgetting here is that if the value of the item is not that high, you won’t benefit at all.
Personal property coverage is mostly added to a home insurance policy by homeowners. It provides a safety net for your expensive valuables and allows you to rest easy that if there is a theft at your place, you will get money to replace the items.
If you are looking for a qualified insurance agent who holds years of experience in this field, then visit Pawson. The company provides several insurance policies for families and individuals. To know more about their policies, contact them at 203-481-8898.
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