Personal Property Insurance | How Is My Stuff Covered?

Personal Property Insurance

What is covered?

Personal property coverage is for your personal belongings. Quite simply it is for what you own on the inside of your house. The old adage is, everything that isn’t nailed down. However it is not only for personal effects within your home. It also covers items located in out-buildings, your car, and even property you are traveling with. Some examples of personal effects covered under this coverage are:

  • Clothes

  • Electronics

  • Furniture

  • Jewelry

  • Tools

  • Lawn Equipment

  • Appliances

How is it covered?

Most standard policies are covered by replacement cost of assets. It is possible depending on the type of policy and what company you are with to choose actual cash value (ACV). For major items a claim will be paid as ACV first and then after receipts have been submitted the replacement cost is honored. Usually you are given an amount of personal effects coverage based of a percentage of the dwelling coverage.

Some companies will allow you to select which percentage you want. This will reduce or increase the premium amount accordingly. It is subject to the policy deductible.

How do I know how much coverage I need?

The best way to tackle this is to take a basic inventory on your major purchases. You don’t have to add up every piece of clothing you own. Have an idea about your furniture, electronics, tools etc.

Claim Situation

Bill has a replacement cost policy with a total dwelling coverage of $300,000. His policy covers his personal property also at full replacement. It is currently set to 50% of his dwelling coverage, so he has $150,000 total for personal belongings. He has a separate building on his land that he keeps all of his tools inside of. Following a severe windstorm, a tree collided into a telephone pole, that crashed through his out-building, causing a fire that destroyed the building.


His insurance company covered his personal property in full based on the type of policy he had. It was destroyed by a covered peril. Regardless of the fact that his property was not located directly inside his main dwelling, it is covered.

When reviewing personal property with your agent it can be referred to as Coverage C.