If a pipe bursts and floods your home, or a thief breaks in and steals your valuables, how much money will you have to spend to replace your lost possessions? Most of us accumulate stuff slowly over time. Having to buy many items at once can be extremely costly. Carrying personal property insurance covers your belongings, so you can put your house back in order quickly.
What is personal property insurance?
Personal property coverage helps pay to repair or replace your clothing, furniture, sporting gear, appliances, and other belongings that get stolen or damaged by a peril that’s listed in your home, condo, or rental insurance policy. (The coverage usually comes with that type of insurance.) Common perils include fire, hail, windstorms, smoke, theft, vandalism, and water damage from plumbing overflow. Check your individual home, condo, or renters policy for your specific coverage; many policies extend to items that aren’t stored in your home.
How does personal property insurance work?
Right now—before a mishap or a burglar strikes—take inventory of everything you own, and either document or estimate the worth of each item. Keep receipts and write down brand names and model numbers of appliances and electronics. Using a home inventory app like Sortly or Nest Egg makes this a snap. Add up the value of your belongings to get an idea of how much total coverage you need.
Talk with an insurance agent about which type of personal property coverage is best for you. There are two kinds:
- Actual cash value pays for what an item is currently worth. If your three-year-old laptop is stolen, for example, you’ll get its depreciated value. If you paid $1,200 when you bought it five years ago, but it’s now worth $400, your policy may pay out $400.
- Replacement cost value pays you the amount it would cost to replace your belongings today.
What does personal property insurance cover—and not cover?
Your policy will specify what types of items are covered, but personal property insurance generally covers:
- Furniture (indoor and outdoor).
- Hobby equipment and supplies.
- Sporting and recreational equipment.
- China and silverware.
- Lawn mowers.
- Other personal belongings.
Some valuable items—such as expensive jewelry, antiques, fine art, collectibles, and musical instruments—may not be covered by your standard insurance policy. If not, ask your agent about purchasing floater insurance for adequate protection.
How do I get personal property insurance?
Talk with an expert at AAA Insurance about how much personal property coverage you really need to protect your belongings—and get a free insurance quote on a home, condo, or renters policy.