A standard homeowners insurance policy covers personal property, such as furniture, clothing and electronics, but that coverage has its limits. For many homeowners, a standard policy doesn’t offer adequate protection. In that case, scheduled personal property coverage can fill the gap.
How a Standard Homeowners Insurance Policy Works
A typical homeowners insurance policy places a limit on the amount of personal property coverage it provides and also limits the amount the company will pay out for a particular type of property, such as jewelry. In addition, there may be a limit on the amount the insurer will provide to compensate you for the loss of one individual item.
Unscheduled personal property includes belongings that are covered by a standard homeowners insurance policy and that have not been itemized. If you file a claim for a loss related to unscheduled personal property, a standard policy’s coverage limit and sub-limit will apply.
A standard homeowners insurance policy may have replacement value coverage, but many policies only provide actual cash value coverage. If an item is damaged or destroyed and you have actual cash value coverage, the amount you receive will take depreciation into account. It might not be enough to replace the item with a comparable new one.
How Scheduled Personal Property Coverage Works
Sometimes customers have valuable items that are worth more than the coverage limits and sub-limits in a standard homeowners insurance policy. Scheduled personal property coverage can supplement a standard policy and provide coverage specifically designed for high-value belongings, such as jewelry, artwork, antiques and collectibles.
Scheduled personal property coverage has a limit that reflects an item’s replacement cost. That means if an item is stolen, damaged or destroyed, you will receive enough money to replace it with another item that is the same or of comparable quality and value. You will have to supply the insurance company with receipts or appraisals for the belongings you want to cover.
You will have to pay additional premiums for scheduled personal property coverage, but you will also get extra benefits. If you have scheduled personal property coverage, those belongings may be covered in a wider range of circumstances. If an item gets lost, damaged or destroyed by a peril that wouldn’t be covered under a standard homeowners insurance policy, you might get compensated for the loss if you have scheduled personal property coverage. In addition, you may have a lower deductible, or no deductible at all, for scheduled items.
