Insuring Your Personal Property

Know What You Have, To Protect What You Have

The kinds of things we are buying is changing. While your parents may have spent a lot of money on furniture, you may find yourself spending more on home electronics and trying to figure out which remote to use.

Taking the time to understand how your coverage works can help you make sure everything you value is adequately covered.

The Amount You Have To Replace Your Stuff

There is a maximum amount your insurance will pay for your personal property. This Limit is usually a percentage of your Structure Limit (the maximum amount your insurance policy will pay to rebuild your home).

Special Categories That Have Limits

Insurance companies group certain kinds of things into categories. Some categories have a maximum amount that can be paid to replace all the items in the category. Within a few categories, there's also a maximum amount to be paid for any single item. To make sure all your stuff is adequately covered, you'll want to go over your policy's category and item limits with your agent.

Actual Cash Value vs. Replacement Cost

Most of your things decrease in value over time. That purple leather sofa isn't worth anywhere near as much as you paid for it back in '92. When you purchase coverage for your personal property, choosing Actual Cash Value or Replacement Cost is one of the most important decisions you may need to make.