Personal Property Coverage
Insurance protection for an individual's movable possessions such as furniture, clothing, electronics, jewelry, and other belongings against covered perils like theft, fire, or vandalism. This coverage is typically included in homeowners and renters insurance policies and pays to repair or replace damaged or stolen items.
Example
“After a break-in at their apartment, the couple's personal property coverage paid $15,000 to replace their stolen electronics, jewelry, and furniture.”
Memory Tip
Personal Property = 'Portable Possessions' - if you can pick it up and move it, it's probably personal property.
Why It Matters
Most people significantly underestimate the total value of their belongings, which can easily reach $50,000-$100,000 or more when including furniture, electronics, clothing, and appliances. Personal property coverage prevents the financial burden of having to replace everything out-of-pocket after a fire, theft, or other covered disaster, allowing families to rebuild their lives more quickly.
Common Misconception
Many people believe their personal property is covered for its full replacement cost, when standard policies often pay only the depreciated actual cash value unless replacement cost coverage is specifically purchased. Additionally, people often assume high-value items like jewelry, art, or collectibles are fully covered, when most policies have specific limits requiring additional coverage for expensive items.
In Practice
A fire destroys $45,000 worth of Jennifer's belongings in her condo. Her renters insurance includes $40,000 in personal property coverage with replacement cost protection and a $1,000 deductible. The insurance company pays $39,000 ($40,000 limit minus $1,000 deductible) to replace her belongings at today's prices, though she must cover the remaining $5,000 and the deductible out-of-pocket since her coverage limit was exceeded.
Etymology
Combines 'personal property' from legal terminology distinguishing movable possessions from real estate, with 'coverage' from Old French 'covrir' meaning 'to cover' or 'protect.'
Common Misspellings
Compare insurance quotes and save
Related Terms
More in insurance
Other insurance terms you should know
See Also
Need help with spelling?
Instant spelling checker with dialect variants for 2,000+ words.