What is Personal Property Insurance? 

Personal property insurance is a main component of homeowners and renters insurance. Whether you own or rent a home, understanding the basics of personal property insurance is essential.

Understanding Personal Property Insurance

Personal property insurance can help cover the cost of replacing or repairing personal items if they are destroyed, damaged or stolen. Policyholders can typically choose between replacement cost value and actual cash value to replace their items. Replacement cost value is the amount it would take to replace the item without deducting for depreciation. In comparison, actual cash value takes depreciation into account. Your insurance provider can help determine which option is best for your situation.

What Does Personal Property Insurance Cover?

Personal property insurance coverage can help cover the cost of repairing or replacing the following:

• Furniture

• Clothing

• Appliances

• Electronics

• Home décor

• Books

Keep in mind that if you have valuable collections, such as jewelry, musical instruments, art or antiques, you may need additional coverage to cover the replacement costs fully.

What Types of Incidents Does Personal Property Insurance Cover?

It typically includes coverage for the following hazards:

• Fire

• Vandalism

• Theft

• Power surges

• Certain types of water damage (e.g., from a burst pipe)

Why is Personal Property Insurance Important?

Without personal property insurance, homeowners and renters would have to pay to replace their belongings out of pocket, which can be costly. For example, if your home burns down but you do not have personal property insurance, all of your processions would just be gone. But with proper insurance, you may receive financial compensation for those items.

Learn More

For personal property insurance near you, contact Muzio & Rovero Insurance Services.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.