What coverage does personal property insurance provide?


Personal property insurance is a very important provision of homeowners insurance since it is intended to protect the personal belongings of an insured against damage or loss. Personal property insurance is also commonly known as Coverage C of a Homeowners policy.

Characteristics of Personal Property Insurance

Personal property coverage does not only provide protection for one's personal belongings, but also for items borrowed and used by the insured. The coverage can also be extended to provide protection to guests or people working on the premises of the insured in the event of a personal property loss.

The personal property insurance amount is usually equal to half of the dwelling coverage amount. This means that, if one's house is insured for $500,000, one's personal property is insured for an extra $250,000. This amount is subject to change. However, personal property off-premises coverage is only 10 percent of the amount allocated to Coverage C, or $1000. This restriction does not apply when one has temporarily moved their personal properties due to repair of their primary residence.

Certain items have special dollar limits for loss payment, therefore you should consider providing separate insurance protection if you have valuable or expensive items of the following types:

  • Stamp collections have a maximum dollar limit of $1500 under home insurance.
  • Coin collections are subject to a $200 limit.
  • Electronics used in cars and powered by the vehicle's or by independent electrical sources, have a $1500 cap of coverage.
  • Jewelry and furs carry a coverage limit of $1500.
  • Silverware, gold, platinum and pewter are insured for a maximum of $2500, and firearms are covered up to the same amount.
  • Watercraft have a maximum dollar coverage of $1500.
  • Any items used for business purposes have a maximum coverage of $2500.
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