Personal property coverage, or “Coverage C” or “contents insurance”, pays to repair or replace your belongings if they’re damaged or lost due to a covered event. It’s included in homeowners, renters and condo insurance.
Mortgage
What Is Personal Property Coverage?
Updated: August 7, 2025
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Key Takeaways
Most homeowners policies automatically include personal property coverage equal to 50% to 70% of your dwelling limit, but you need to verify that the amount covers everything you own.
Standard policies may limit coverage for high-value items like jewelry or collectibles unless you add scheduled coverage.
Personal property coverage usually protects your belongings even when outside your home (like a laptop stolen at a café). Still, off-premises claims are often subject to lower coverage limits, so you may not be fully reimbursed.
Personal Property Coverage: What Is It?
Key Takeaways
Gadgets
Computers, tablets, phones and other gadgets
Clothes
Everyday clothes, formal wear and shoes
Appliances
Refrigerators, microwaves and other non-built-in appliances
Furniture
Sofas, beds, tables, chairs, etc.
Sports and hobby equipment
Guitars, bikes, exercise gear, etc.
Artwork
Artwork, medals, trophies and similar items
What Does Personal Property Insurance Cover?
Personal property coverage pays to repair or replace your belongings if they're damaged or destroyed by a covered event. Depending on your policy, coverage may apply to a set list of named perils or offer broader open peril protection. It may also reimburse you based on the item's current value (actual cash value) or the cost to buy a new one (replacement cost).
Common covered perils include:
Fire, smoke and explosions
These hazards can cause serious damage to your furniture, electronics and clothing, even if your home’s structure remains intact. Personal property coverage reimburses you for items lost in fires, smoke damage or accidental explosions.
Theft and vandalism
If someone breaks into your home or steals from your storage unit, your belongings are usually covered. This also includes damage from intentional acts like graffiti or property destruction.
Weather-related events
Windstorms, hail and lightning strikes are commonly covered perils under most policies. For example, if hail ruins your patio furniture or lightning fries your computer, personal property coverage can step in.
Water damage (sudden and accidental)
Burst pipes, appliance leaks and other sudden water issues are generally covered. However, damage from flooding or neglect is usually excluded and may require separate coverage.
Falling objects and collapse
If a tree crashes through your roof or your ceiling caves in from the weight of snow, your belongings may be protected. These events are often included in standard homeowners, renters and condo insurance policies.
Named Perils vs. Open Perils in Personal Property Coverage
The type of peril coverage your policy includes affects how and when you're reimbursed for damage or loss. Insurers offer either named peril or open peril coverage, each with different levels of protection.
- Named perils coverage only protects against specific events listed in your policy, such as fire, theft or wind. If a peril isn’t named, the damage won’t be covered.
- Open perils coverage protects your belongings from all causes of loss unless the policy specifically excludes them. This offers broader protection, though exclusions like flood or intentional damage still apply.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV) in Personal Property Coverage
When you file a personal property claim, your payout depends on how your policy values the lost items. Most insurers use Actual Cash Value (ACV) or Replacement Cost Value (RCV) to determine reimbursement. These methods affect how much you’ll receive and pay out of pocket.
Actual Cash Value (ACV) | The item's current market value, minus depreciation | A six-year-old sofa originally bought for $1,200 is valued at $350 today |
Replacement Cost Value (RCV) | The amount needed to buy a new item of similar kind and quality | You’d be reimbursed the full cost to buy a comparable new sofa, even if it now costs $1,200 |
What Doesn’t Personal Property Insurance Cover?
Personal property insurance has limits, and knowing what's excluded prevents surprise expenses after a loss. Most policies list specific situations or items that fall outside coverage. These exclusions involve high-risk events, maintenance issues or belongings that require special protection.
Floods, earthquakes and other excluded disasters
Standard policies don’t cover damage caused by floods, earthquakes or sinkholes. You’ll need separate coverage for these high-risk natural events.
Wear, tear and maintenance issues
Damage from gradual deterioration, mold, pests or neglect isn’t covered. Insurance is designed for sudden, accidental loss, not upkeep or preventable issues.
Intentional or illegal acts
Losses resulting from fraud, intentional damage or criminal activity aren’t eligible for reimbursement. This includes both your actions and those of others if not covered by the policy.
Business equipment or inventory
Items used for business purposes may have limited or no coverage under a standard home policy. You may need a business endorsement or separate policy to fully protect them.
SCHEDULED PERSONAL PROPERTY ENDORSEMENT FOR HIGH-VALUE ITEMS
Ask your insurer about a scheduled personal property endorsement if you own high-value items like jewelry, fine art or collectibles. This add-on lets you list specific items for full coverage beyond standard policy limits, often without a deductible.
How Personal Property Coverage Works
Personal property coverage pays to repair or replace damaged belongings if a covered peril hits your home. A severe windstorm hits your area, knocking over trees, damaging roofs and triggering power outages. Inside your home, several belongings are either broken, lost or ruined. How your insurer responds depends on your policy's peril coverage and how it values your property.
- Wind damage under an RCV + Open Perils policy
- A tree branch shatters your living room window and destroys your TV and sound system. Since wind is not excluded in open peril coverage and your policy uses replacement cost, you’re reimbursed the full amount needed to buy similar new electronics. There's no deduction for depreciation, so you're not paying out of pocket to upgrade.
- Wind damage under an ACV + Named Perils policy
- The same storm knocks over your patio umbrella, crashing through a window and damaging your furniture. Wind is listed as a covered peril, so the loss is eligible, but because your policy pays actual cash value, you receive a depreciated payout for each item. You’ll need to cover the difference to fully replace what you lost.
- Power outage from the storm under an RCV + Named Perils policy
- A multi-hour blackout ruins the food in your fridge and fries your desktop computer. The damage isn't covered because power outages aren’t typically listed as named perils, even with replacement cost value. You’d be responsible for the full cost of replacing those items.
- Water damage from wind-driven rain under an ACV + Open Perils policy
- Rain seeps through a broken window and damages your rug, bookshelf and electronics. Open peril coverage includes this type of accidental water damage unless excluded, so your claim is accepted. However, with actual cash value, you only receive the current depreciated worth of those items, not the cost to buy them new.
Do You Pay a Deductible With Personal Property Insurance?
Yes, personal property claims require you to pay a deductible before coverage kicks in. This is the amount you're responsible for out of pocket, subtracted from your reimbursement. Some policies or endorsements may waive the deductible for specific items or scenarios, but that's uncommon.
How Much Personal Property Coverage Do You Need?
The right amount of coverage depends on your belongings' total value and risk tolerance. Many homeowners policies default to 50% to 70% of your dwelling coverage for personal property, but this may not cover high-value items. Taking inventory and understanding what's covered helps you adjust your limit to avoid being underinsured.
ESTIMATE YOUR PERSONAL PROPERTY COVERAGE NEEDS
Download this printable worksheet to list your belongings, estimate their value and determine how much personal property coverage you need.
How to Create a Home Inventory
A home inventory helps you track your belongings and proves what you owned if you need to file a claim. It's a simple but powerful tool that can speed up reimbursements and reduce stress after a loss.
- 1
Choose your method
Decide how you want to record your inventory. This could be a mobile app, spreadsheet or even a written notebook. Choose a format that you’ll use and can easily update.
- 2
Go room by room
Walk through your home one room at a time and list everything you own. This helps you stay organized and prevents you from missing smaller items.
- 3
Record details
Include item names, brands, serial numbers (if available), purchase dates and estimated value. The more details you include, the easier it will be to verify your claim later.
- 4
Take photos or video
Photograph each item and take wide shots of entire rooms. For high-value items, take close-ups and capture identifying marks or labels.
- 5
Store receipts when possible
Attach digital or physical receipts to support the listed value of major purchases. If you don’t have receipts, bank statements or online order histories work too.
- 6
Back up the inventory
Save your inventory in secure cloud storage or on an external hard drive. This ensures you won't lose your records in a disaster like fire or theft.
- 7
Update regularly
Review your inventory at least once a year or after major purchases. Keeping it current ensures your coverage stays accurate and claim-ready.
How to Make a Personal Property Claim
Filing a claim after your belongings are damaged or stolen can feel overwhelming, but following these steps speeds up the process. A well-documented claim increases your chances of getting reimbursed quickly and fairly.
- 1
Document the loss
Take clear photos of all damaged or missing items, including their surroundings if relevant. Write down what happened, when it occurred and what was affected.
- 2
Report the incident
If the loss involves theft, vandalism or other criminal activity, file a police report. Most insurers require this for theft-related claims and will ask for the report number.
- 3
Contact your insurer
Reach out to your insurance company online or by phone to start the claims process. Be ready to share your policy number, incident details and initial documentation.
- 4
Submit proof of loss
Provide receipts, warranty records or a home inventory to verify what you owned and its value. The more evidence you supply, the smoother the claim review will be.
- 5
Cooperate with the adjuster
An adjuster may contact you for more details or to inspect the damage in person. Answer questions promptly and provide any additional documentation they request.
- 6
Review the settlement offer
Once the claim is processed, your insurer will issue a settlement based on your policy’s terms. Verify that the amount aligns with your coverage and item values before accepting.
Personal Property Calculator
Not sure how much personal property coverage you need? This calculator helps you estimate the total value of your belongings so you can choose the right coverage amount.
Personal Property Coverage Calculator
When figuring out how much renters insurance you need, experts recommend the standard $100,000 in liability insurance and enough personal property protection to cover your possessions. Use MoneyGeek's calculator to estimate the value of your possessions so you know how much personal property coverage to buy.
clothing & accessories
Clothes, shoes, bags, belts, hats, gloves, etc.
Personal Property Insurance: Bottom Line
Personal property coverage protects your belongings if they're damaged or stolen in a covered event. Whether you own a home, condo or rent, having the right coverage protects your belongings' value when disaster strikes.
Before choosing a policy, take inventory of your items, understand your policy limits and consider extra protection for high-value possessions. Informed choices now prevent major losses later.
Home Insurance Personal Property: FAQ
Below are common questions about personal property coverage, including what's covered, what isn't and how it works with your homeowners, renters or condo insurance policy.
Is jewelry covered under personal property coverage?
Jewelry is covered under personal property coverage, but coverage is often capped around $1,500. You may need scheduled coverage for high-value items.
Are appliances covered under dwelling or personal property coverage?
Coverage depends on how the appliance is installed. Built-in items are covered under dwelling coverage, while plug-in appliances like refrigerators or microwaves fall under personal property.
Are cars covered under personal property coverage?
Cars aren't covered under personal property coverage. Vehicles require auto insurance. However, if personal items stored in your car are stolen and they're normally kept in your home, your renters or homeowners policy may provide coverage.
Does personal property coverage apply outside the home?
Personal property coverage applies outside the home. Many policies cover belongings away from home, like luggage stolen during travel or a laptop taken from your car. Off-premises coverage usually comes with lower limits, so check your policy details.
How do deductibles affect personal property claims?
Your deductible is subtracted from any approved claim. If your deductible is $1,000 and your loss is $1,500, you'd receive $500. Ensure your deductible aligns with what you can afford out of pocket.
Can I get replacement cost instead of actual cash value?
You can get replacement cost instead of actual cash value, but this typically increases your premium. Replacement cost coverage pays to replace an item with something similar, while actual cash value subtracts for depreciation.
Personal Property Home Insurance Companies: Our Review Methodology
MoneyGeek analyzed personal property insurance using proprietary data from Quadrant Information Services, which includes real-world quotes and rate filings submitted to state insurance departments. This analysis allowed us to compare premiums and coverage options across major homeowners insurance providers.
Homeowner profile
We used a standardized sample profile:
- Good credit score (769–792)
- Single-family home built in 2000
- Wood-frame construction with a composite shingle roof
Coverage limits
Unless otherwise noted, quotes were based on standard homeowners insurance limits:
- $250,000 in dwelling coverage
- $125,000 in personal property coverage
- $200,000 in personal liability coverage
- $1,000 deductible
We also reviewed quotes for high-value homes using increased limits:
- $1 million in dwelling coverage
- $500,000 in personal property coverage
- $1 million in personal liability coverage
Actual premiums and coverage availability may vary by location, insurer and individual risk profile. For the most accurate quote, review your policy details or speak directly with an insurance provider.
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About Mark Fitzpatrick
Devon Delfino is an independent journalist based in the Pacific Northwest. Her personal finance coverage has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others.
sources
- Insurance Information Institute. "Understanding the insurance claims payment process." Accessed August 8, 2025.
- Insurance Information Institute. "What is covered by standard homeowners insurance?." Accessed August 8, 2025.