Personal Property Insurance

What is personal property insurance?

Personal property coverage can cover your belongings such as furniture, clothing, sporting goods or electronics in the event of a covered loss. You can protect what you own whether items get damaged at your home, an apartment or anywhere in the world. Consider personal property protection to help ensure the things that make your house a home are protected from the unexpected.

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Personal property insurance coverage

Travelers’ homeowners, condo and renters policies provide coverage that can compensate you for personal items such as furniture, clothing and electronics that are damaged in a covered loss. A personal property policy can cover your personal belongings wherever they are.

How to insure personal property 

Personal property is an important part of homeowners insurance, condo insurance and renters insurance because it protects your belongings that are part of your everyday life.  

You can insure your personal property, both inside and outside of where you live, through the three insurance policy types below. Ask your independent agent or Travelers representative to explain the personal protection that comes from these policies: 

Homeowners insurance

Condo insurance

Renters insurance

How do you calculate replacement cost of personal property? 

Under most Travelers policies, covered personal property losses are settled based on actual cash value at the time of loss, but not more than the reasonable amount required to repair or replace the damaged item. In most instances, actual cash value is the reasonable cost to repair or replace the damaged item, less a deduction for depreciation. 

Travelers offers an optional coverage – personal property replacement cost loss settlement – that provides for settlement of covered personal property losses based on replacement cost at the time of loss, with no deduction for depreciation. When purchasing your homeowners policy, you’ll need to decide whether you want the actual cash value personal property coverage, which is typically included in a homeowners policy, or the optional replacement cost coverage. Both are subject to applicable policy limits and deductibles. 

Typically, homeowners policies pay you the actual cash value of your personal property after it’s destroyed. That means you’ll receive payment for the property up to its value, minus however much it depreciated since purchase. For example, a computer you bought for $1,000 eight years ago has significantly depreciated in value, let’s say to $200. If you have an actual cash value policy, the maximum amount you would be paid would be the lesser of the cost to repair it, or $200, less any applicable deductible. If you have a replacement cost policy, the amount you would be paid would be the lesser of the cost to repair or replace the item with a similar new computer, less any applicable deductible. 

If you want to be fully insured for your personal property, you may want to purchase personal property replacement coverage on your policy. Replacement coverage means you’re getting the exact amount to replace the same object for current market price. If that computer was $1,000 then, you’ll get $1,000 less any applicable deductible to replace it. This may also cost more than the actual cash value version. 

Optional scheduled personal property available 

Some classes of personal belongings, such as the examples below, may have a limited amount of coverage available based on the type of claim.  

• Money or related property, coins and certain precious metals. 
• Watercraft, including trailers and equipment. 
• Jewelry, watches and semiprecious stones. 
• Silverware, goldware or pewterware. 

Additional coverage may be available for some items using scheduled personal property, optional endorsements or separate policies. Personal property protection is highly recommended for items such as these. For example, you can insure jewelry, golf clubs, silverware and other possessions on a valuable items plus endorsement, or on a personal articles floater policy.

What isn’t covered under personal property insurance?

Keep in mind that certain damage isn’t covered by homeowners insurance, as the policy contains terms, conditions and exclusions. For example, if your personal property is damaged in an earthquake, the damage is typically not covered under your home insurance unless you purchased earthquake coverage. Similarly, damage from a flood isn’t covered unless you purchased a separate flood policy. Special limits may also apply to certain properties.

Summary

Personal property insurance is an important protection to have for your most valued possessions. Whether you live in a condo, a house or an apartment, you can get more peace of mind with the right personal property insurance.

If you’re ready to take the next step in insuring your personal property, get a quote* or find an agent.