Personal Property Coverage

· 2 min read
Personal property coverage (Coverage C) is the part of your homeowners insurance that protects your belongings — furniture, electronics, clothing, appliances, and everything else you…

Personal property coverage (Coverage C) is the part of your homeowners insurance that protects your belongings — furniture, electronics, clothing, appliances, and everything else you own — against theft, fire, and other covered perils.

Most policies set personal property coverage at 50-70% of your dwelling coverage. If your home is insured for $300,000, your stuff is covered up to $150,000-$210,000. That sounds like a lot until you actually add up what you own. The average American household has $100,000-$300,000 worth of personal property. Replace everything after a fire and you’ll see how fast it adds up.

What Counts as Personal Property

Everything movable: furniture, TVs, computers, clothing, kitchen appliances, sporting goods, books, tools, and artwork. Personal property coverage also extends to your belongings away from home — your laptop stolen from a coffee shop, luggage lost during travel, or a bike taken from your office. The away-from-home limit is usually 10% of your total personal property coverage.

High-value items have sub-limits. Jewelry is typically capped at $1,500-$2,500. Cash at $200. Firearms at $2,500. Silverware at $2,500. If you own a $10,000 engagement ring, you’ll need a separate rider or endorsement to fully cover it.

Watch out: Most standard policies cover personal property on an actual cash value basis — meaning they deduct depreciation. Your 5-year-old $2,000 TV might only pay out $800. Upgrading to replacement cost coverage for personal property costs 10-15% more in premium but pays to replace items at today’s prices. On a major claim, the difference is $10,000-$30,000+. It’s worth the upgrade every time.

Business property has limited or no coverage under a homeowners policy. If you work from home and your $3,000 computer is used for business, your personal property coverage might only pay $2,500 of it — and some policies exclude business equipment entirely. Work-from-home setups often need a separate business property endorsement, typically $50-$100/year.

Create a home inventory before you need it. Walk through your home with your phone camera, open every drawer and closet, and save receipts for big purchases. Store the inventory in the cloud — not in the house that might burn down. If you’re buying a new home, start the inventory on move-in day. Review your coverage limits annually.

Are my belongings covered during a move?

Yes, your homeowners policy typically covers personal property in transit between your old and new home for up to 30 days. However, coverage limits still apply, and the moving company’s liability is usually limited to 60 cents per pound per item. For high-value moves, consider separate moving insurance — especially for items that exceed your policy’s sub-limits.