Secure Insurance Protection for Your Personal Belongings

Having homeowners insurance provides a measure of financial security against unexpected loss to your home and personal property, just as renters insurance can also take care of unexpected situations of loss. Personal property coverage extends the financial protection available for your personal belongings. These could be items of furniture, electronics or clothing.

Personal Belongings Coverage Options

With personal property coverage, there are two categories of reimbursement during covered situations of loss. Replacement value will generally provide the dollar amount necessary to replace the items at the time the claim is filed. Under an actual cash value policy, the dollar amount is calculated according to depreciation factors to establish the current value of the item. These policies also establish limits on what items are eligible for reimbursement and how much money will be provided.

Closing the Gap in Coverage

It is a common misconception to believe that all personal belongings that are lost through theft, fire or other damage are covered in standard renters or homeowners policies. While these policies often have allowances and protections for certain risks, each policy must be specifically evaluated to find out the coverage provided for personal belongings. Having a separate policy to directly address personal property fills in any gaps in coverage from these other sources.

Ensure your covered limits are high enough to cover your belongings, particularly if there is jewelry or other valuables involved. Always check the specifics of your policies to determine how well your property is protected.