Personal property can be described as the contents in a home or business. This coverage is very affordable for renters, and should be purchased without exception. For homeowners, it is part of your homeowners policy, with specific coverage amounts determined and stated under the personal property category.
The easiest way to visualize it is to think of taking the roof off and turning the building upside down. Everything that falls out is personal property. Therefore, built-in cabinets, appliances, desks and bookshelves are not personal property. Carpet, wood and tile flooring, window treatments and light fixtures are not personal property. These are items that are considered part of the structure and are not considered when determining the dollar amount you need to insure your personal property.
Another way to describe personal property is what you’d take with you if you move. Whether you are a renter, homeowner or business owner, it is very important to be aware of the limits of your personal property insurance coverage.
There are specific limits to your insurance policy regarding assets in your home or business. You should be aware of these limits and discuss your specific needs with a qualified insurance agent. Every insurance company designates their limits for specific items. Here are a few items, with common limit amounts:
– Jewelry: $1000-$3000
– Guns: $1000-$3000
– Silverware: $1000-$3000
– Business Personal Property: $1000-$2500
– Sports/Stamp Collections: $1000-$2500
– Money: $200-$500
These numbers are not per piece, but the full amount allowed. So, if you have a diamond engagement ring that is valued at $3000, and that’s the limit on your policy, you will have maxed out your entire coverage for all jewelry with just that one ring. If your policy has a $1000 limit, based on the example of a $3000 ring, you’ll only receive $1000 toward a replacement. Take a look at your jewelry armoire or jewelry box. How many pair of earrings do you have that are considered costume jewelry? You can easily exceed $1000 with 5 pieces of jewelry from Sears!
Original, irreplaceable fine art and collectables are items that could easily exceed their limit. To be sure you’ll receive full settlement, have them appraised and listed on your policy to ensure you’ll receive full replacement value at the time of the loss.
Have you inherited your grandmother’s fine silver? Do you know the value? How about guns? Just one rifle could exceed your policy limit!
If you have assets that exceed the specific limit in your standard homeowner’s policy, you will need to purchase additional coverage. The cost is minimal when you consider how much you stand to lose.
