Personal belongings coverage is essential to your homeowners or renters insurance policy. This coverage covers your furniture, clothes, and other items if damaged or stolen.
A home inventory can help you determine the value of your belongings and how much personal property coverage you need.
Coverage for high-value items
Most homeowners, condo owners, and renters insurance policies contain personal belongings coverage, which pays to replace or repair your property if it’s damaged or stolen.
Standard home, condo, or renters insurance policies typically have limits and sub-limits for high-value items such as jewelry and guns.
Appraising your valuables can help you get the right coverage for them. And you can even add floaters to increase your coverage.
Coverage for damage to your vehicle
Personal belongings coverage is designed to protect the personal items you keep in your home. It’s essential to take inventory of your possessions and ensure you have enough coverage for each item, as some depreciate quickly and aren’t worth the replacement cost.
Add a rider for high-value items like jewelry or art to your policy. Standard homeowners or renters’ insurance policies often limit such items’ value, so it’s important to talk to your agent about getting additional protection.
Coverage for items stored off-premises
Like the protection you get for your belongings inside your home, homeowners and renters insurance also offers coverage for items stored away from your property.
The coverage varies according to the perils and conditions included in your policy, but it usually covers theft and damage from fires, tornadoes, and other disasters. It does not cover damage caused by flooding, earthquakes, vermin, mold, mildew, or poor maintenance at the storage facility.
Coverage for theft
Theft is a named peril that insurance companies cover on multiple types of policies. That means your stuff will be covered at home and while traveling abroad — and it’s one of the most important reasons to get your coverage right.
A standard policy generally pays up to a certain percentage of your personal property limit. Depending on the type of loss settlement you choose, you’ll have the choice between replacing your items for actual cash value or replacing them with brand-new ones.
Coverage for loss of use
Loss of use coverage, also called Additional Living Expenses (ALE), reimburses you for living expenses if you’re forced to live away from your home due to a covered peril.
It covers everything from the food you eat out to the gas you use for travel. You can also receive reimbursement for pet boarding and storage costs that you otherwise would have paid if your home was damaged and could not be lived in.
Coverage for loss of income
Generally, you’ll be covered up to a specific limit for losses involving jewelry and other items of value. Consider adding a rider or other supplemental coverage for more expensive possessions. Creating an inventory of your belongings can also help you determine how much coverage you need—having backup insurance, such as a safety deposit box or fireproof safe. This way, you’ll have a plan should the unexpected happen. It’s worth the effort to be prepared.
Coverage for loss of use of your home
The loss of use part of your homeowners insurance policy reimburses you for expenses related to living outside your home while it is being repaired or rebuilt. This part of your policy is also called additional living expenses.
The easiest approach to make the most of your loss of usage insurance is to submit receipts for any purchases made while you are away from home and keep track of all increases in living expenses. In addition, it can help you negotiate with your insurance company if you ever need to make a claim.
Coverage for loss of use of your business
Business interruption or income insurance provides the cash to make it through downtime. Typical coverage includes payroll, rent, mortgage payments, and continuing normal operating expenses such as insurance.
A well-crafted policy will also reimburse you for extra costs such as hotels and restaurants. So, again, the best coverage will help you get back on your feet.
Coverage for loss of use of your boat
When you’re on a boat, it’s essential to stay safe. It includes performing a head count to ensure everyone is safe and sound and calling emergency services if someone falls overboard.
However, it’s also vital to understand your boat insurance policy and the features it offers. It includes coverage limits and insured value deductibles. The latter is the amount you must pay out of pocket before your insurer begins to pay. The right deductible can help you lower your premium.
Coverage for loss of use of your RV
If you cannot use your RV because it is damaged or stolen, this coverage helps replace the items inside. It can be essential if you are a full-time RVer and live in your RV year-round. Personal belongings coverage can cover up to $99,000 of your possessions while you’re on the road. Essentially, this is similar to homeowners insurance. It’s a good idea to list your belongings and determine their value. It will help you decide how much coverage you need.
