A standard home insurance policy will always include coverage for damage, destroyed or lost items. Property coverage is an essential part of home insurance because a home is not simply the structure but also the items inside it. However, most homeowners insurance policy set limits to the amount that they will pay and some do not even cover all types of property. If you opt for a Schedule Personal Property insurance, you can get the entire value of your property even for your most expensive items.
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Standard Personal Property vs. Scheduled Personal Property
What is a Scheduled Personal Property?
Scheduled personal property is an add-on to your standard policy. With this supplemental policy, you extend your property coverage beyond the typical protection of a homeowners insurance. Your regular homeowners policy you will not be able to secure the full value of your home especially if you have special items. It will not be helpful if you own expensive items such as jewelry, furs, antiques, or fine artwork. When you need to get complete protection for these items, you must consider getting a scheduled personal property coverage.
Some items that you can insure under scheduled personal property include:
- Musical instruments
- Stamp or coin collections
- Golfing equipment
- Fine art
What is A Standard Personal Property Insurance?
A standard homeowners insurance policy covers factors such as:
- Dwelling coverage and other structures like sheds, detached garages, or fences
- Loss of use
- Personal liability and medical coverage
- Personal property
Personal property coverage provides protection for the items inside your home. This includes items like appliances, furniture, and other personal items. In a standard insurance coverage, your personal property will be ensured between 20% to 50% of the limits of the coverage. For example, a standard policy of $250,000 for structure coverage and $100,000 of personal property which is 40% of the $250,000. The total amount of your coverage should depend on the total amount of items that you own. While this may be a great inclusion for a typical home, houses with expensive items may not get the total value of their property in case a claim is needed.
Personal property will mostly include items like shoes, clothing, appliances, furniture, and some other specific items. However, there are several limits that will apply to properties like electronics (laptops or computers), business property, firearms, and watercraft. Some insurance companies may even allow coverage of your personal items if the damage happens while you are not at home with a certain limit on the amount.
When Do You Need Scheduled Personal Property Coverage
Once you receive your insurance policy, you need to review the contents included. It will usually detail the amount of the coverage including the limits for the items. For example, you may get a coverage of $1,500 for jewelry, watches, and other precious stones. If you have a collection that is valued more than this amount, you may want to consider getting scheduled personal insurance.
Different insurance companies have different ways of assigning the value of your items. Most companies will require you to provide a receipt or a proof of appraisal of the item before they can provide you with the coverage.
Benefits of Scheduled Personal Property
Scheduled personal property coverage provides at least three specific advantages:
- Most standard homeowners insurance policy will cover personal property on actual cash value (ACV). This means depreciation will be calculated against your property. With a scheduled personal property you get the total value of your items sans depreciation.
- Protection extends to many other types of losses than what is usually listed in your homeowners insurance policy. For example, you may be covered by fire or theft in traditional personal property insurance, with scheduled property insurance you will also be covered if you just accidentally lost the item.
- There is no deductible needed when filing a claim for scheduled personal property.