Personal Property Insurance Basics and Tips

Imagine that a huge tropical storm struck your area. Your home and your car were insured, so they can be replaced. But did you have personal property insurance for your other important items?

This type of coverage is actually offered within your renters or homeowners insurance policy. What this does is cover all of the goods in your home that are not attached to it permanently. This would include objects like furniture, books, computers, clothing, and other appliances. For most carriers, you will be covered for up to forty percent of the value of your residence policy.

There is somewhat of a hitch to the forty percent in a standard homeowners insurance policy, however. Fine and hard to replace possessions as a whole are only protected for up to one thousand dollars. This means any group of items that include firearms, silverware, jewelry, furs, watches, and documents. Agencies do this in hopes of encouraging folks to purchase extra personal property insurance. It is recommended to do this if you own many of these types of valuables.

Something you will want to do at some point is to make a list of your belongings. This is so you are prepared in the event of fire, flood, or theft. Things will go much more smoothly in general dealing with the agent and paperwork. Make an inventory list in categories to make it easier, being sure you do not miss much.

After your inventory is complete, you need to sit down and make an estimate of the cost of replacement for it all. Take into account that clothing and everyday items like that lose their value over time. On the other hand, some electronics and memorabilia appreciate in amount. Once you have the estimate, put this away in a file in a safe deposit box. Eventually add to it any sales receipts, serial numbers, or video or picture evidence. Keep it updated!

A natural disaster or theft can occur to anyone at anytime. You don’t want to lose everything you have and not be able to replace any of it. Make sure you have personal property insurance with your other policies!