How To Protect Personal Belongings

Personal Belongings and Personal Property

A question I get often both from homeowners and renters is “What is considered personal belongings vs. personal property?” A simple way to see it is if your home was turned upside down, pretty much all that would fall out is considered your personal property, furniture, jewelry, home accessories, etc.

Does my homeowner’s policy cover my personal belongings?

Whether you own a home or rent an apartment, insurance policies typically include personal property coverage of some type. This coverage helps you pay to repair or replace your belongings after a covered loss, such as theft or fire.

Typical homeowners policies cover personal belongs to some degree. A review of your policy would show to what degree and value your belongings are protected from loss. There are two types of personal property coverage: replacement cost and actual cash value. A replacement cost policy typically pays the dollar amount it will take to buy a new item at the time of a claim. An actual cash value policy factors in depreciation to provide reimbursement based on the current value of an item. It’s also important to know that personal property coverage usually has certain limits on what it will pay to replace an item or category of items

What does Renters Insurance Cover?

In New York, renters insurance will replace personal belongings should they be destroyed, lost, or stolen. Most policies will also provide liability coverage, medical payments to others, and will cover temporary housing costs should your home be uninhabitable. While New York law does not mandate renters insurance, it is a recommended coverage option for anyone renting a house or apartment. They’re generally cheap and can protect your liability and contents from covered losses.

A common misconception among renters is that their landlord’s insurance policy will cover their belongings. The landlord’s policy typically helps protect the residence against certain risks, but that coverage typically does not extend to a renter’s belongings. The personal property coverage in a renters policy helps cover your belongings, including things like jewelry, stereo, TV, camera, up to the coverage limits in your policy.

What should you do?

Always talk to an insurance professional with experience to make sure your personal belongings are adequately covered.

Don’t wait until a disaster occurs and you lose all your valuable belongings. Contact us today for a free review and quote.