Your homeowners policy protects more than the structure; it also covers your belongings. But personal property coverage has built-in limits that surprise many policyholders at claim time.
How Much Contents Coverage Do You Have?
Personal property coverage is usually set as a percentage of your dwelling limit, often about 50 to 70 percent. If your dwelling limit is $300,000, your contents coverage may be around $150,000 to $210,000. Add up what it would cost to replace your furniture, clothing, electronics, appliances and tools; many people discover the total is higher than they assumed.
Replacement Cost vs. Actual Cash Value
Actual cash value pays what your items were worth after depreciation: a 10-year-old sofa is worth much less than a new one. Replacement cost pays what it costs to buy a comparable new item, and is usually a modest add-on that is well worth it.
Special Limits to Know
Policies commonly cap payments for certain categories, often at low amounts, unless you schedule the items separately. Typical examples include:
- Cash and gift cards
- Jewelry and watches (theft limits are often just a couple of thousand dollars)
- Firearms, silverware and collectibles
- Business property kept at home
Scheduled Personal Property
To insure valuable items for their full value, you can schedule them on your policy with an appraisal or receipt. Scheduled coverage often has no deductible and can cover loss, theft and accidental damage, including a ring lost down the drain.
Protect Yourself Before a Loss
- Create a home inventory with photos, video, receipts and serial numbers.
- Store a copy in the cloud.
- Review your coverage after big purchases, weddings and renovations.
- Ask us about replacement cost and scheduled items.
Limits and options vary by carrier. See our home inventory checklist.