What Does Personal Property Cover on a Home Insurance Policy?

Typically, based on the bank’s concern for the mortgage, most homeowners focus on the reconstruction value of their home when obtaining homeowners insurance. As a result, the typical personal property amount will be set at about 70% of the dwelling value. This means that roughly $350,000 of contents coverage will apply to a home whose rebuilding value is set at $500,000. There is more to know about what the personal property replacement cost coverage actually covers within those parameters.

For most policies, only personal property at the home on the policy will be covered. There is a limit to property at another residence, if you have one. Everything in the insured home – appliances, furniture, other personal property – will be covered. An additional premium will be collected for items such as gold, money, valuable papers, silverware, and more. Further, rented items in the home, other tenants (renters), aircrafts and parts, motor vehicles, and fish, birds, and animals are also items that are not typically covered.

To get these items and certain perils, such as earth movement and power failure, you have to talk with your insurance agent.

To learn more about personal property coverage, contact North American Advantage Insurance Services.