How Well Do You Know Personal Property Coverage?
Personal property coverage is a key part of most homeowners and renters insurance policies. This protection can assist you in replacing your belongings, such as furniture, televisions, and appliances. It applies if they are damaged or destroyed by specific covered losses, commonly known as perils.
No one expects to experience a loss. But suppose your belongings were ruined in a fire or stolen from your home. Do you know how insurance may help?
A 2015 survey by Lab42 found that most homeowners and renters feel confident in understanding their insurance policies. They believe they have sufficient protection in place.
Additionally, almost 85 percent of respondents indicated that they are aware they can choose their own coverage levels. These levels are referred to as "limits" in insurance policies. The survey included 500 policyholders of home, renters, or auto insurance. It revealed that some individuals do not fully understand how personal property coverage works.
For instance, survey results revealed:
41.1 percent are either uncertain whether clothing is included in personal property coverage or they believe it is not included. According to the Insurance Information Institute, clothing is typically covered after a loss caused by a peril listed in your policy. It's important to remember, though, that limits will apply.
64.6 percent believe their homeowners or renters policy will cover a diamond engagement ring. While a standard policy may offer some protection for expensive jewelry, coverage is often limited per item. Suppose you have $50,000 in personal property protection. Your policy may limit coverage for jewelry to $1,000 per piece. Be sure to read your policy to understand what it covers. You might consider buying specialized coverage, called scheduled personal property, for certain items. This can offer extra protection.
Approximately 27.9 percent of people believe that homeowners insurance covers lost or misplaced items. Additionally, 15.8 percent are uncertain about their coverage. The truth is that stolen items might be covered by insurance. However, standard policies typically do not cover belongings that you lose or misplace.
Keep in mind that insurance typically provides coverage up to a certain maximum or limit. Creating a home inventory can help you understand the value of your belongings. This knowledge allows you to discuss adjusting your coverage limits with your agent.
From furniture to clothing to computers, the value of your belongings can quickly add up. A local agent can help you understand what your homeowners or renters insurance covers. This way, you can decide how much coverage is right for you.
*This survey was conducted by Lab42 among 500 insurance policyholders (auto, homeowners and/or renters), ages 25-44, October 2015. Respondents did not have to be BlueRock Insurance policyholders to participate. Respondents were allowed to select all that apply. For informational purposes only.