Homeowners Personal Property

Personal property is also referred to as contents insurance. Stolen personal items and items destroyed by perils have coverage with this insurance. Personal property coverage also includes items stored outside of the home.

It covers expensive items like jewelry and collectibles. However, if stolen there are dollar limits. For instance, items count as personal property even if they have no attachment to the house. Although this excludes motor vehicles.
Personal property includes the following items:
  • Furniture.
  • Clothing.
  • Electronics.
  • Appliances.
  • Artwork.
  • Decor.
  • Dishes.
  • Tools.
  • Refrigerator and pantry contents.
  • Sporting goods and toys.

Actual Cash Value vs. Replacement Cost Value

Insurance companies will pay for personal property based on the coverage selected. Homeowners can select to have their property replaced. Between the actual cash value or the replacement value.

The actual cash value is the replacement value of the property minus depreciation. Standard homeowner policies pay you for the actual cash value (ACV) of your possessions if destroyed. For example, you may have paid $1,500 for a new dryer five years ago but today it’s value may be at $500 due to depreciation. With actual cash value, you would only get the $500 for the dryer from the insurance company.

Replacement value is the cost to replace the property with property of equal or comparable value. If you want to be fully insured, you’ll want to make your policy a replacement cost value (RCV) policy. Replacement cost value means you are getting the exact amount to replace the same object for the current market price. If that TV was $3,000 then, you will get $3,000 to replace it. This may also cost more than the ACV version.

Premiums for replacement value policies tend to be higher. This is because the settlement amount received from the insurance carrier is higher.

More Information

Do you need more information about types of property insurance, watercraft insurance coverage, or types of coverage for other motor vehicles? Our team is here to help. Call us today at 888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.

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*Please review your own policy carefully for details on homeowners insurance. Homeowner’s insurance varies by insurance company and policy.