Property Insurance

Personal property insurance coverage can help protect the items you keep in your home, like furniture, electronics and kitchen appliances.

But even your smaller everyday belongings are probably worth more than you think. If they’re damaged or lost in a fire or theft, this type of insurance can help you cover the cost of replacement. In some cases, it can also help insure your car, motorcycle, boat, or recreational vehicle.

Remember that not all risks are covered by a personal property or homeowners’ policy. If your home and its contents are damaged in a flood, for instance, it’s unlikely you’d be reimbursed without a separate flood policy.

Two types of coverage

Your insurance policy will reimburse you for your damaged or lost items based on which type of coverage you have: Replacement cost or actual cash value.

• Replacement cost policies pay the full replacement cost of your item – what it would cost to purchase a similar item new at the store.

• Actual Cash Value policies are also based on the replacement cost for your items, minus depreciation, considering the current state of wear and tear on your items and what they could be sold for at the time of their loss.

Choosing the right level of coverage

Steps to properly insuring your possessions:

Compare the value of your possessions to the total amount of coverage you already have. If you are underinsured, consider an additional policy or rider to make up the difference.which products will best meet you and your family’s needs.

Make a list of all your personal property and keep it up to date.

Estimate the value of your items at current prices.

Find out how much personal property coverage you have within your existing homeowners’ or renters’ policies.

Determine if your existing policies provide replacement cost or actual cash value for your items.

Check for coverage limits on certain possessions, like jewelry, silverware, or computers.