Personal Belongings
When your home owner policy refers to your personal belongings, they mean everything that you store inside your home. This includes things like:
- Furniture
- Appliances
- Wardrobe
- Sporting equipment
- Stereo
- Television set
Anything of value that you choose to list to your provider will be covered in case of theft or damage due to a disaster that is covered by your policy. It won't, however, reimburse you for the amount that you paid for the item. Most providers will take into account depreciation in value of the item between the time you purchased it and when it was damaged or destroyed.
This is called 'actual cash value.' For example, if you have been building your stereo system over the past decade, the speakers you bought ten years ago won't be reimbursed for as much as the amp you purchased ten days ago. You may receive only a small percentage of what you originally paid for the speakers.
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Additional Personal Possessions Coverage
If you are concerned that certain items are not covered by your home insurance policy – or not covered enough – then purchase extra insurance. Limits are set for high priced items explicitly in your policy, so check the details. Some may not be covered at all. The list of questionable personal belongings that may need extra coverage or coverage all their own includes:
- Jewelry
- Fine art and collectibles
- Furs
- Computers, peripheral equipment, and software
- Antiques
- Sentimentally valued items
- High couture fashion
- Sporting equipment
- Tools
- Landscaping trees and shrubs
If, however, you use any of your personal belongings for your home business (not working for someone else) then they will not be covered by your home insurance policy. For example, if you have an extensive tool collection for your plumbing business and you keep it at home, should it be destroyed or stolen, your home owners insurance will not cover the loss.
On the other hand, if you bring your prized jewelry on vacation with you and it is stolen while you are gone or lost due to a disaster there, you will still be covered. As always, check the details of your policy to be sure that it offers the coverage you need.
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Home Insurance Basics is not an insurer and cannot issue home insurance policies. This site provides free information about home insurance policies and companies. The companies detailed have not endorsed or sponsored these pages. Products and services may not be available in all states.
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