Personal Property Why You Need Insurance

Imagine picking up your home, turning it upside down, and shaking it until all your personal belongings fall out. Visualize looking at every individual item that has accumulated in the resulting heap.

What do you see?

At first glance, you will likely find your furniture, televisions, and other large pieces. When we consider personal property, these are the things we usually think of. But, let’s take a closer look at your pile of possessions. 

If you are like most people, you likely own much more than you originally thought. While it may be easy to think about replacing a couch, table, and a few chairs, what surprises most victims of a catastrophic event is just how much they actually owned – and the remarkable sum of money it took to replace every item.

Think about the cost to replace just the smaller, less expensive possessions you own such as:

• Shoes
• Clothing
• Area rugs
• Coffee mugs
• Pots and pans
• Wine and spirits
• Children’s books
• Spoons and forks
• Household toiletries
• Socks and underwear
• Towels and dish clothes

The list could go on and on. If these items were lost to a fire or flood, along with the more obvious possessions like sofas and recliners, would you be able to afford replacing everything?

If not, you probably need personal property insurance.

Personal property insurance is not expensive, and most homeowners’ policies can include a coverage amount equal to 40 to 70 percent of the home’s value for little additional premium. If you are a renter, a renter’s policy can also include contents insurance along with your liability coverage for a reasonable premium.

It is important to note some valuables may be limited as to how much you may be reimbursed per item including:

• Jewelry
• Cameras
• Computers
• Works of art
• Cash and securities

Higher limits of insurance may be specifically purchased for exposures that are capped at a limit less than their total value. Other limits, exclusions, and restrictions may also apply. Seek guidance from a licensed insurance agent to fully understand your policy’s terms and conditions.