What is Personal Property?

Personal Property, in the context of insurance, refers to items owned by an individual that are movable and not fixed to one location. It can include many items such as furniture, clothing, electronics, jewelry, appliances, tools, sports equipment, and other personal belongings.

In an insurance policy, personal items are typically covered under homeowners, renters, or condo insurance. The coverage is designed to help protect the policyholder’s belongings from certain risks, such as theft or damage from fire, smoke, wind, or hail.

There are two types of personal property coverage in insurance: actual cash value and replacement cost coverage. Actual cash value coverage pays the policyholder for the depreciated value of the item at the time of the loss. In contrast, replacement cost coverage pays to replace the item with a new one of similar kind and quality.

It’s important to note that there may be limits on the amount an insurance company will pay for certain types of property, such as valuable items like jewelry or artwork. Policyholders may need additional coverage, known as a rider or endorsement, to protect these high-value items fully.

Personal property should not be confused with real property, which refers to fixed property, such as land and buildings.