Is it a cliché to say insurance can be confusing? If you’re mildly allergic to paperwork, it may just feel like a lot to take in at once — especially given the abundance of options in today’s insurance market.
What’s nice about modern insurance is that it’s standardized. Once you understand your coverage options, things start to come into focus a little better. And so it goes with “Coverage C: Personal Property,” a standard part of every homeowners insurance policy.
To be clear, Coverage C is in the first section of your homeowners insurance policy. It comes right after Coverage A, “Dwelling,” and Coverage B, “Other Structures,” the two coverage types we’ve already explored in our “Coverage of the Month” blogs. As you might guess, this section of your homeowners insurance policy covers personal items. That’s right: all your stuff.
Let’s look at it a little closer, so you know where Coverage C begins and ends. That way, you’ll better understand where your personal property coverage should begin and end.
THE INS: What’s Covered?
Unless you’ve gone to extremes and found that all your personal belongings “no longer spark joy,” you probably keep some amount of stuff in your house. That stuff has monetary value. Like, maybe you won’t miss that one dusty food processor in the way-back of your cabinet that you got for your wedding. But what about that blender you use every morning? You need to protect the stuff that’s important to you.
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.
THE (POTENTIAL) OUTS: What May Not Be Covered?
One important consideration with personal items: the big-ticket items some of us may have. We’re talking valuable works of art, expensive jewelry or musical instruments, and even high-end clothing or watches — things of that nature. The kind of things you can’t just easily replace given how unique or highly valued they are. Those items may require special coverage in your homeowners insurance policy. Think about it: There are certainly pieces of art that are worth more than every appliance in your kitchen, and art tends to be unique.
Coverage C will be limited to a certain dollar amount. Valuables present a specific risk to insurers, and your coverage may not apply to your big-ticket items. So if you have any items like these, you’ll want to talk to your insurance agent or advisor about your options for additional coverage.
Which Perils Are Covered?
Just as with Coverages A and B, the Coverage C section of your policy will have specific coverage based on peril. For example, does your policy cover water damage from putting out a fire? Fires can be highly localized, and the kitchen is pretty common site for them. But if a fire crew arrives, they’ll put water all over the house to ensure the fire is fully out. That could cause water damage to a lot of your personal property. But for your insurance to cover that damage, that peril must be included by your policy language.
The good news? Usually, water damage of this nature is covered. But your agent can walk you through specifics. Bottom line: If you’re worried about a certain peril damaging your personal property, make sure your policy language covers it.
Get Informed, and Get Covered
Coverage C is obviously something you want in a homeowners insurance policy. But what it covers — and for how much — can be quite variable. Your personal property coverage will depend on how much stuff you have, how much rare or expensive stuff you have, and which perils you want to protect your stuff from. And that’s just one more reason it pays to find a great insurance agent or advisor who will take the time to understand your specific needs, and tailor a policy that perfectly suits both you AND your stuff.
Also, please rest assured: We’d never judge anyone based on what sparks joy for them. After all, insurance sparks joy for us! And you’re not judging us — right? ;)
Want to make sure you’ve got enough personal property coverage in your homeowners insurance policy? One of Covered’s independent advisors will be happy to do a free policy review. Give us a call at (303) 302-9927 or send us a message.