What Is Personal Property Coverage?  

Personal property coverage, also called contents coverage, is the part of a home policy that is designed to help pay to repair or replace your belongings if they are stolen, damaged or destroyed by a covered event. It applies to movable items you own, including furniture, clothing, electronics and appliances.

This article explains how personal property coverage works, what it typically does and does not cover, how sublimits may affect high-value items and how to estimate how much coverage may be appropriate for your situation.

How personal property coverage works

Personal property coverage is designed to help pay for the repair or replacement of your personal belongings after a covered loss such as fire, theft or vandalism. It applies to items inside your home and, in many cases, belongings damaged or stolen while you are away from home.

Personal property coverage is one of several components in a standard homeowners policy, alongside dwelling coverage, liability coverage and additional living expense coverage. It addresses the contents of your home, not the structure itself.

Coverage is typically set at 50% of your dwelling limit by default. If your dwelling coverage is $300,000, you would have $150,000 in personal property coverage. You may be able to increase that limit if the value of your belongings is higher.

What does personal property insurance cover?

Personal property coverage is designed to apply to movable items you own that are not permanently attached to your home's structure. This includes everyday belongings as well as higher-value items, up to your policy's coverage limits and sublimits.

Common examples of covered personal property include:

• Furniture and home furnishings
• Clothing and footwear
• Electronics such as laptops, televisions, and phones
• Appliances that are not built into the home
• Jewelry, up to applicable sublimits
• Musical instruments
• Sporting goods and recreational equipment
• Tools

Off-premises coverage

One feature many policyholders are not aware of is that personal property coverage may apply to belongings outside your home as well. Items stolen from your car, damaged in a hotel room or lost during travel may be covered up to your policy limits and sublimits, depending on the cause of loss and the terms of your specific policy.

Sublimits: what they are and why they matter

A sublimit is a cap your policy places on reimbursement for a specific category of items, separate from your overall personal property coverage limit. Even if you have $150,000 in total personal property coverage, a sublimit may restrict how much your insurer will pay for a single category.

Common categories with sublimits include:

• Jewelry and watches
• Furs
• Firearms
• Silverware and goldware
• Cash and gift cards
• Fine art and collectibles
• Business property kept at home

For example, your policy might cap jewelry coverage at $1,500 per item or $2,500 total, even if your overall personal property limit is much higher. If the value of items in a sublimit category exceeds your policy's cap, scheduled personal property coverage may be worth discussing with your representative.

What does personal property coverage not include?

Personal property coverage is designed to apply to damage from covered perils such as fire, theft and wind. It does not apply to every type of loss. Several common situations fall outside its scope.

Items and situations typically not covered include:

• Flood damage. Damage from flooding generally requires a separate flood insurance policy, often available through the National Flood Insurance Program.
• Earthquake damage. Earthquake coverage is typically not included in a standard policy and may need to be added as a separate endorsement or policy.
• Normal wear and tear. Gradual deterioration over time is not considered a covered loss.
• Mysterious disappearance. An item you simply cannot locate may not be covered without evidence of theft. Coverage for mysterious disappearance may be available as an optional addition to your policy. Ask your representative for details.
• Vehicles. Cars, motorcycles, and most motorized vehicles are excluded from personal property coverage.
• Property of others. Belongings owned by roommates, tenants, or guests are generally not covered under your policy.
• Business property. Equipment used primarily for business may have limited coverage or require a separate commercial policy.

What is scheduled Personal Property Coverage?  

Scheduled personal property is separate coverage for specific, high-value items outside the coverage included in your home insurance. Essentially, you choose a valuable item and insure it on its own.  

This is important for items whose value may exceed the limits of your standard Homeowners Insurance or Renters Insurance. Home Insurance policies include sub-limits for categories of items, which dictate the maximum amount an insurer will pay for a damaged or stolen item. If you want to insure something that’s worth more than what your policy will pay for it, it’s a good idea to schedule it. 

Here are some examples of scheduled personal property items: 

• Artwork 
• Antiques 
• Collectibles (and full collections) 
• Jewelry 
• Musical instruments 
• Professional equipment 
• Medical equipment 

How much Personal Property Coverage do I need?  

The answer to this question depends on how many valuables you own, and whether their value falls within your standard policy limits. As stated, if you have high-value items that you’ve personally appraised, it’s probably a good idea to schedule them. 

There are two methods insurance companies use to value items at the time of loss: Actual Cash Value (ACV) and Replacement Cost. Here’s how they work. 

1. Actual Cash Value (ACV): ACV is the value of an item at the time it’s stolen, damaged or destroyed. This method includes depreciation into the value. 
2. Replacement Cost: The actual cost of replacing the item with a new item of almost identical value and quality. 

Here’s an example of how each works: Five years ago, you purchased a computer for $5,000. It was stolen a month ago. 

ACV calculation: 

• Original cost: $5,000 

• Depreciation: Let’s say the computer depreciates at 10% per year. 10% x 5 years = 50% 

• Depreciation amount: $2,500 

• Payout: $2,500 (subject to applicable deductible)

Replacement Cost calculation: 

• Original cost: $5,000 

• Payout: The insurance company will research the cost of new computers of equal (or close to equal) value and provide reimbursement. 

All policies come with different forms of coverage payout and not all losses are covered; coverage is subject to policy terms, conditions and exclusions. Talk to a COUNTRY Financial agent today to see what type of Personal Property Coverage is best for you. 

Actual cash value vs. replacement cost: how your payout is calculated

When you file a personal property claim, your insurer calculates the payout using one of two methods: actual cash value (ACV) or replacement cost value (RCV). The method in your policy directly affects how much you receive.

Here is how the difference plays out on a real claim:

You purchased a laptop five years ago for $1,200. It is stolen.

• Under ACV: The insurer estimates the laptop has depreciated 50% in five years. Your payout may be approximately $600, minus your deductible.
• Under RCV: The insurer prices an equivalent new laptop at today's cost. If a comparable model costs $1,100 today, your payout may be approximately $1,100, minus your deductible.

Replacement cost coverage typically carries a slightly higher premium than actual cash value coverage. Whether the difference is worth it is a personal decision based on the age and value of the items you own. A COUNTRY Financial agent can walk through both options with you.

You can also review the full breakdown of actual cash value vs. replacement cost on our coverage resource page.

Published 5-1-24
Updated 4-23-26