Personal property coverage is the section of your homeowners insurance policy that will pay if your belongings get damaged or destroyed by a covered peril, or if they get stolen. Take a little time to review your coverage and figure out if it fits your needs.
Do You Know How Much Your Stuff Is Worth?
Your house is probably full of furniture, clothing, electronics, books, and other items that you’ve acquired over the course of several decades. When you stop to think about everything you own and try to estimate how much it’s all worth, you might have no idea.
Making a home inventory can help. An inventory includes information on your belongings, such as descriptions, serial numbers, and purchase prices. You can make a list or take photos or videos to document what you own.
A home inventory can be useful if you need to file an insurance claim. It can also help you figure out if you’ve got the right amount of personal property coverage.
Does Your Coverage Still Work for You?
Even if you went through the process of making a home inventory and calculating the value of your belongings when you took out a homeowners insurance policy, things have probably changed since then. You’ve most likely acquired new furniture, electronic devices, and other items. The amount of personal property coverage that you selected might no longer be enough.
Your policy might have a limited amount of coverage for items such as jewelry. If you’ve acquired one or more expensive items and their value exceeds that limit, you’ll need additional coverage. You might be able to raise your coverage for that category of items, or you might decide to insure individual belongings with scheduled personal property coverage.
What Kind of Policy Is Right for You?
The type of insurance coverage you have will determine how much you’ll receive if you file a claim. An actual cash value policy will pay you an amount that accounts for depreciation if something you own gets stolen, damaged, or destroyed. A replacement cost policy will give you enough money to purchase a new, comparable item.
Replacement cost coverage comes with higher premiums, but it can save you a bundle if a disaster strikes and you have to replace everything you own.
Do You Need More Insurance Coverage?
If you think you might need additional personal property coverage, contact your homeowners insurance company or agent to discuss modifying your policy. Before you commit to a change, shop around and compare rates from other insurers. You might be able to get the additional coverage you need at a rate that’s not much higher than what you’re currently paying.
