What is personal property insurance?
The personal property portion of your home insurance, also called Coverage C, protects your possessions—the belongings that make your house a home. That includes things like:
- Furniture.
- Clothing.
- Electronics (think: TV, laptops, cameras, etc.).
- Jewelry.
- Recreational gear.
- And more
Your homeowners policy’s personal property protection insures these items for their actual cash value.
What personal property insurance covers
Typically, Coverage C offers protection when your items are lost or damaged. The most common covered perils that cause loss to personal belongings are:
- Fire
- Theft
- Vandalism
- Windstorms
If you opt for a special personal property endorsement, you can get protection for damage caused by events beyond the ones listed here. It’s also worth noting that items included in a special personal property endorsement may be covered on a replacement-cost basis. This means your insurer covers what it costs to repair or replace your belongings with new, similar items (not including your deductible) rather than only paying out what the depreciated item is worth.
What personal property insurance doesn’t cover
Certain possessions are often excluded from personal property coverage, including:
- Vehicles
- Credit cards
- Animals
- Aircraft and parts
- Business data
- Personal property you are renting to others
Coverage C also doesn’t usually pay to repair or replace items damaged by storm surges and flood waters, either. For that, you’d need flood insurance.
Does Coverage C cover lost items?
Most homeowners and condo insurance policies don't cover lost or misplaced items. What they do cover, however, are financial losses caused by certain perils.
For example, let’s say something is stolen from your house, like your television. Theft is covered by most home insurance for personal property policies, so that loss is most likely covered. But your home insurance policy usually doesn’t cover a loss if you simply misplace an item. If you misplace your valuables or leave them behind at a hotel, then you’re probably going to pay for that loss on your own.
How much Coverage C do you need?
It takes years to fill your home with things you love, so it’s important to have adequate coverage for these belongings. You can use your dwelling insurance as a benchmark for how much property coverage to buy.
For example, many homeowners opt to carry about 20% to 50% of their dwelling insurance for their belongings. So if your home is insured for $200,000, you’d likely want $40,000 to $100,000 in personal property coverage. If you have a lot of belongings, that percentage / amount of coverage may need to be higher.
If you have really valuable belongings, like fine jewelry, art, furs, coin collections, wine collection, or antiques, you may want to look into scheduling these items or increasing your limits. Another option is our Signature Coverage Collection, which comes with higher limits and replacement cost coverage for your possessions.
Give us a call at (855) 717-0022 to get more details about our Signature Coverage Collection.
How home inventories boost your property protection
To figure out how much your belongings are worth, walk around your home and document the items that you invested in. Take photos of these belongings and file away your receipts. Doing so will help make sure you carry the right amount of coverage and help you if you need to file a claim to repair or replace these belongings.
Get your home inventory worksheet.
Is personal property insurance required?
Do you need home insurance and personal property coverage? In most cases, the answer is yes.
While personal belongings insurance isn’t usually required, it’s important to have so you know you can recover if you experience a loss. Luckily, personal property insurance is a standard part of homeowners policies.
Because this is a type of insurance that pays for damages to belongings, people in the industry sometimes call it content insurance – basically, it covers most of the things inside your home, from gadgets to precious family heirlooms. But remember, you don’t have to buy separate homeowners insurance for personal property coverage. If you have a home insurance policy, you likely already have personal property insurance.
Want to spend less money when you purchase a homeowners insurance policy? Get a quote from us. Our customers often find that our homeowners policy with personal property insurance often saves them money while still providing quality protection.
How much does personal property coverage cost?
Coverage C is part of your homeowners policy, so it’s difficult to separate out how much of your premium goes towards personal property coverage and how much goes to your other coverages. That said, there are several factors that impact your premium, including:
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The value of your belongings. For Coverage C, this is probably the most important factor. A home inventory can give you a pretty good idea what your personal property is worth.
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Your risk. Different homes face different perils, and that has a big impact on how much your home insurance premium. For example, a home on a coast or in Tornado Alley has a greater chance of wind damage, so insuring it costs more.
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Your home’s characteristics. Size, age, and even construction type can all play a role in your insurance policy premium.
Details about your homeowners policy can also impact your costs. For example, you’ll want to know if you have replacement cost vs actual cash value coverage. Most homeowners policies cover your personal property for its actual cash value, which subtracts for depreciation if your belongings are ruined in a covered incident. However, you can often opt for replacement cost coverage. This type of policy uses the current market price of your belongings without deducting depreciation.
Personal property replacement cost policies are typically a bit more expensive than actual cash value coverage but may be worth it if you want to replace your damaged items with ones of a similar quality. Getting replacement coverage usually means you won’t be caught off guard if you make a claim only to discover your losses aren’t covered to the extent you thought they’d be. On the other hand, you might prefer to save money by opting for an actual cash value policy.
The great news is that we offer actual cash value personal property insurance, but you can ask for replacement cost coverage. Either way, our representatives will take the time to explain what you’re getting in your homeowners policy. No unwelcome surprises!
Most home insurance providers (us included!) require you to carry a minimum amount of personal property coverage – usually around 10% of your dwelling coverage. This means a home that costs $300,000 to rebuild, typically needs a minimum of $30,000 in personal property coverage. But again – that’s just a minimum. We usually suggest getting personal property coverage that’s at least 20% of your dwelling insurance.
But the key is figuring out what you can afford and how much risk you’re willing to tolerate. Every Kin policy is tailored to the individual to ensure they only pay for the protection they need.
Not sure what that is? That’s okay. One of our most important services is assistance from insurance experts who can walk you through your options. You can go online or call 855-717-0022 to get a personalized quote from today.
Cover your personal property with Kin
Insurance for personal property comes standard in most home insurance, so you want to make sure you get the right policy. That starts by finding an insurance company you can trust – one with an exceptional financial stability rating so you know it will be there in case of a total loss.
But financial strength isn’t the only thing you should look for in an insurance company. As a direct-to-consumer provider, we’re committed to changing the way homeowners insurance works. That why we work to:
- Make it easy to get a quote for your home and personal property insurance.
- Speed up the claims process, even during a hurricane.
- Help homeowners save an average of $780 on their coverage.*
Whether you use our online application or speak to one of our in-house licensed insurance professionals, we’re here to make sure you get the right insurance policy for your home.
The world is changing, and we believe the insurance industry can change along with it. We’re reimagining home insurance for every new normal and providing affordable coverage even in the areas most impacted by climate change.
To learn more about homeowners or personal property insurance coverage in your area, check out our state-specific guides.
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*Customers who switched to Kin report annual savings of $780 on average. Based on Kin Customer Savings Survey conducted June 2021 - June 2022.
