Personal property coverage is the part of your homeowners policy that pays to repair or replace your belongings when they’re damaged, stolen or destroyed. If a fire wipes out your furniture, a burglar takes your laptop or a burst pipe ruins your wardrobe, personal property coverage helps you recover financially.
Jerry has helped over 54,000 homeowners compare home insurance quotes in the past year, making it easier to get the personal property coverage they need. Here’s everything you need to know about how personal property coverage works and how much you actually need.
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What personal property coverage pays for
Personal property coverage, also called Coverage C, protects your belongings inside and outside your home. If a covered event damages or destroys your stuff, your home insurance policy pays to repair or replace it, after you pay your deductible.
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Furniture, including sofas, beds, tables and chairs.
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Electronics, like TVs, computers, gaming consoles and smartphones.
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Appliances, including washers, dryers, refrigerators and microwaves.
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Clothing, shoes and accessories.
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Kitchenware, including dishes, cookware and utensils.
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Sports equipment, musical instruments and hobby supplies.
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Personal items in your car, a storage unit or with you while traveling.
Here’s an example of how personal property coverage works.
Key takeaway: Personal property coverage helps pay to repair or replace your belongings – from furniture and electronics to clothing and kitchenware – if they’re damaged or destroyed by a covered event.
What is a covered peril?
Your personal property coverage protects against specific perils, which are events that can damage or destroy your belongings.
Covered perils typically include:
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Fire and smoke.
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Wind and hail.
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Lightning.
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Explosions.
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Theft and vandalism.
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Falling objects, like trees or debris.
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Sudden water damage from a burst pipe.
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Weight of ice, snow or sleet.
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Damage from vehicles or aircraft.
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Riots or civil commotion.
Review your policy to understand exactly which perils are covered, since coverage can vary depending on whether you have a basic, broad or special form policy.
Why it matters: Most standard home policies (HO-3) cover personal property on a named perils basis, meaning you’re only covered for the specific events listed in your policy. This is different from dwelling coverage, which is typically on an open perils basis, protecting against more types of damage.
Learn more: What does home insurance cover?
How much personal property coverage do you need?
Your personal property coverage should equal the total value of your belongings. Most insurers automatically set your Coverage C limit at 50% to 70% of your dwelling coverage.
For example, if you have $300,000 in dwelling coverage, your personal property limit would be between $150,000 and $210,000. But whether that’s enough depends on what you actually own.
Here’s how to estimate your personal property coverage needs.
đź“‹ Create a home inventory.
Go room by room and list what you own, including furniture, electronics, clothing and appliances. Take photos or videos for documentation.
đź’° Estimate replacement costs.
Note what each item would cost to replace it today, not what you originally paid.
âž• Add it all up.
The total is a good target for your Coverage C limit..
🔍 Check for high-value items.
Some categories have special limits and may need extra coverage. Think valuables like jewelry, art and antiques.
Jerry recommends: Only 47% of homeowners have created an inventory of their possessions, according to a Triple-I/Munich Re survey. A simple inventory helps you choose the right limit and makes managing claims much easier.
Protect your belongings with Jerry
Getting the right personal property coverage shouldn’t mean calling multiple companies. With Jerry, you can compare quotes from 10+ insurers in one place and buy your policy entirely online, with no phone calls required.
Need to bundle your home and car insurance? Jerry makes it easy to mix and match carriers to get the right coverage at the best price. You can bundle with the same carrier for a discount, or combine options to fit your needs. And if you want help, our licensed agents are just a chat away.
Mix and match with Jerry to build your perfect bundle.
What personal property coverage doesn’t cover
Personal property coverage has important limits and exclusions you should note.
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Flood damage. Requires separate flood insurance through the National Flood Insurance Program (NFIP) or a private insurer.
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Earthquake damage. Requires an earthquake policy or endorsement, which isn’t automatically included.
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Wear and tear. Home insurance covers sudden damage, not belongings that break down over time or from regular use.
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Pest damage. Damage from termites, mice and other critters isn’t covered because insurers consider it preventable.
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Business property. If you work from home, equipment used for business may need a separate commercial policy.
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Motor vehicles. Cars, motorcycles and ATVs need their own car insurance policies.
Key takeaway: Don’t assume all your belongings are covered. Flood damage, earthquakes, cars, wear and tear and business equipment all need separate coverage.
Special limits on high-value items
Even if you have plenty of personal property coverage overall, certain categories of valuable items have special limits – also called “sublimits.” These cap how much your insurer will pay for specific types of property, no matter how much they’re actually worth.
Here are common sublimits on a standard home insurance policy.
| Item type | Typical sublimit |
|---|---|
| Jewelry, watches and furs | $1,500 to $2,500 |
| Silverware and gold items | $2,500 |
| Firearms | $2,500 |
| Cash and securities | $200 to $500 |
| Watercraft and trailers | $1,500 |
| Electronics (theft only) | $1,500 to $2,500 |
Why it matters: If your engagement ring is worth $6,000 but your policy has a $1,500 jewelry sublimit, that’s all you’ll receive if it’s stolen. To fully protect high-value items, you’ll usually need to schedule them on your policy or add additional coverage.
Replacement cost vs. actual cash value
When you file a personal property claim, how your insurer calculates your payout depends on whether your policy uses replacement cost or actual cash value.
Replacement cost value (RCV)
This pays what it costs to buy a new item of a similar kind and quality at today’s prices, without subtracting for depreciation. For example, if your five-year-old TV is destroyed, you’ll get enough to buy a brand-new one.
Actual cash value (ACV)
This pays replacement cost minus depreciation. So that five-year-old TV? You’d get what it’s worth today, which might only be a few dollars. ACV policies are cheaper but payouts are often much lower.
Jerry recommends: Upgrade to replacement cost coverage so you can replace what you lost, not get a depreciated payout.
Personal property coverage away from home
Your personal property coverage isn’t limited to your home. It can protect your belongings almost anywhere, with limits.
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Stolen from your car. If someone breaks into your car and steals your laptop or purse, personal property coverage pays to replace it.
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Lost or damaged while traveling. If your luggage is stolen at a hotel or your camera is damaged on vacation, you’re covered.
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In your child’s dorm room. Many policies extend coverage to belongings at a college student’s on-campus residence.
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In a storage unit. Items you store off-site are typically covered under your personal property limit.
Why it matters: Coverage for personal property away from home is usually limited to 10% of your total Coverage C limit or $1,000, whichever is greater. So if you have $150,000 in personal property coverage, you’d get up to $15,000 for items stolen or damaged away from home.
Optional coverages worth considering
These add-ons, also called endorsements, aren’t part of your standard policy but expand your protection.
đź’Ť Scheduled personal property
Increases coverage limits for specific high-value items like engagement rings, fine art, antiques and collectibles.
đź’§ Water backup coverage
Pays for damage to your belongings when water backs up through drains or your sump pump fails; especially valuable if you have a basement.
Why it matters: Adding a few optional coverages now could save you from a major out-of-pocket expense later, especially if you own expensive jewelry, electronics or collectibles that exceed your policy’s standard sublimits.
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faq
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🏠What is personal property coverage in home insurance?
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đź’° How much personal property coverage do I need?
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đźš— Does personal property coverage protect items in my car?
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🔍 What’s the difference between replacement cost and actual cash value?
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đź’Ž Does home insurance cover jewelry theft?
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🌊 Does personal property coverage include flood damage?
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đź“‹ Do I need a home inventory?
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
