Valuable personal property insurance sounds repetitive — if you already have renters or homeowners insurance, isn’t that enough?
Surprisingly, the answer is likely no. If you own an expensive engagement ring, an antique collection or a custom-made musical instrument, then a standard renters or homeowners insurance policy probably isn’t insuring the full value of your items.
If you suffer a loss due to a fire or a burglary, you’ll wish you’d added valuable personal property insurance to your financial portfolio.
What Does Your Policy Cover?
The first step to determining if you’re uninsured is to find out the limits of your coverage. Your policy might specifically exclude jewelry and other valuables. Or it may limit coverage to a certain amount — usually $10,000 or less.
But for the most part, you can’t buy valuable personal property insurance unless you buy a property insurance policy first.
Assessing Value and Adding Riders
Once you know how much coverage you have, assess the value of the items you’d like extra insurance for. Many jewelry pieces and antiques are worth much more than when they were purchased. Get official appraisals for each item, along with your proof of ownership, such as a receipt, if you have one.
You will want to insure each item as individual riders on your policy if your coverage falls short. For example, if you own a $5,000 engagement ring and a matching set of diamond earrings appraised at $2,000, your homeowners insurance policy’s cap of $3,000 on jewelry losses will leave you short $4,000.
When you add each valuable item as a rider on your policy, you’re also covered for a wider range of losses, such as if a stone falls out of your engagement ring. You wouldn’t be covered for this loss under a standard policy with no rider.
Questions to Ask
When you’re increasing your valuable personal property insurance coverage, make sure to ask your insurance company the right questions.
First, make sure you know how to file claims. Some insurance policies may require that you purchase a replacement, then request reimbursem*nt. Some policies may simply mail you a check for the value of the total loss.
Are you required to continuously update the appraisal of the valued items? If so, how often should you send appraisals to your insurance company?
Are there any losses that are not covered under the policy? How should you prove the loss to your insurance company?
At Four Seasons Insurance, we make it easy to assess and increase your valuable personal property insurance as needed. Walk through the steps with us and we’ll help you determine how much coverage you need, offering you a personalized quote for each valued item.
FAQs
There are two types of personal property coverage: replacement cost and actual cash value. A replacement cost policy typically pays the dollar amount it will take to buy a new item at the time of a claim.
What is household personal property insurance? ›
What is personal property insurance? Personal property coverage — also known as contents coverage on a home policy — helps cover the cost of your personal items if they are destroyed, damaged, or stolen due to a covered loss or peril.
What is VPP insurance? ›
It's insurance that protects your personal property, such as jewelry, watches, guns, cameras, musical instruments and more. Valuable Personal Property insurance, or VPP, offers protection beyond what a homeowners or renters policy covers.
What is insurance on real or personal property called? ›
Property insurance refers to a series of policies that offer property protection, including structural damage, theft of personal belongings, and liability coverage. Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance.
What is a good amount of personal property coverage? ›
How much personal property insurance do you need? You need enough personal property insurance to cover the full value of all your belongings. For homeowners, insurance companies will often set your personal property coverage at a certain percentage of your dwelling coverage, such as 50% or 70%.
What is not covered by property insurance? ›
Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.
Which of the following is not covered by personal property coverage? ›
Items in your home like pets, property of roommates, boarders, or tenants (for homeowner's policies), and vehicles are not covered.
What is the difference between personal property and personal liability insurance? ›
Property insurance protects the structure of your home (dwelling coverage) and your belongings (personal property coverage). And personal liability coverage protects you if you're legally responsible for damage to someone's property, or if you accidentally injure someone whether you're at home or away from it.
What is coverage C personal property? ›
Coverage C - Personal Property
This coverage provides protection for the contents of your home and other personal belongings owned by you and other family members who live with you. Coverage is limited on certain types of property that are especially susceptible to loss, such as: • Jewelry. Antiques. Furs.
What does PMD mean in insurance? ›
Mobility Device. A comprehensive insurance that caters to Personal Mobility Device (PMD) users, protecting you against costs and expenses you may incur due to third party liabilities arising from negligent use of the PMD registered in your name.
PPA General Liability Insurance, administered by Lockton Affinity covers you for: Bodily injury and property liability whether you're at your own studio or on location. Real or alleged faults in your work that result in bodily injury or property damage.
What is PFR insurance? ›
The Permanent Fleet Registration (PFR) program is a convenient way for owners of large vehicle fleets to manage their vehicle registration.
What is personal property coverage also known as? ›
Sometimes called contents coverage or contents insurance, personal property coverage safeguards your belongings and is a valuable part of your home insurance policy. Learn more about the Best Homeowners Insurance Companies of 2024.
What is personal insurance coverage? ›
Personal liability insurance is about financial protection for you and your family. The personal liability coverage within your homeowners policy provides coverage to pay for claims of bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible.
What is personal possessions insurance? ›
What is personal possessions insurance? It covers your everyday belongings against accidental loss or damage in and outside the home. This includes mobile phones, laptops, clothing, cash, jewellery, musical instruments and sports equipment.
What is an example of Coverage C personal property? ›
Coverage C includes items like electronics, housewares, clothing, and even furniture. It can also be stuff you keep in your yard or other structures, like patio furniture, a hot tub, bikes, or tools. If your stuff is stolen or damaged by a covered peril, this coverage may help pay for its repair or replacement.
What was the first form of personal property insurance coverage? ›
Many consumer complaints and court decisions eventually led to the first uniform property insurance policy called the 165 Line New York Standard Fire Policy of 1943.
What are the two types of personal liability coverage in a standard homeowner insurance policy? ›
Bodily injury or property damage caused intentionally by you or a family member in your home. Injuries or damages sustained by you or family members in your home.
