Protecting Your Personal Property with Homeowners Insurance

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

When insuring your home, it should also make sense to protect the contents of your home as well. One of the most important parts of any homeowners insurance policy is the area that protects your personal property. Such items can include furniture, appliances, televisions, etc...

Insured personal property is actually covered anywhere in the world as long as it is owned or used by the policy holder, or covered family members.

Coverage for personal property is limited unless endorsements are bought, so make sure you research what kind of coverage is available to you and your personal property.

Your homeowners insurance is responsible to pay you the actual, depreciated value of your losses. Rather than the replacement value which is likely much higher. There is a limit of coverage in which benefits for a loss of personal property doesn't exceed 50% of the total amount insured on the property.

There are many special limits of liability that are applied to protect the insurance companies. There is a $200 limit of liability on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins and medals. In some cases $200 is inadequate to cover your loss, so you'll require more protection.

There is a $1,000 limit of liability on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, tickets, and stamps.

Also common is a $1,000 limit for watercraft, watercraft trailers, grave markers, theft of jewelry, watches, furs, and precious stones. The insurance company will pay $2,000 for loss of firearms due to theft. They will pay $2,500 for loss of silverware, silverplated ware, goldware, gold-plated ware, and pewterware due to theft.

There is a $2,000 limit for property on your residence, used for business purposes. Finally, there is only a $250 limit of liability on personal property, away from your residence, being used for business purposes.

Personal property protection, as with any section of insurance, comes with a few exclusions. Any animals, birds, or fish are excluded. Also aircraft, property of non-related tenants or roomers, any books of account and drawings (this includes bookkeeping records, electronic date, computer software) and credit cards.

Theft is an all too common devastating issue when it comes to personal property. Unfortunately not all thefts are covered under your insurance policy. Some of the excluded thefts include thefts by the insured, thefts from part of the residence rented to another, theft in or to a building under construction, or theft from a secondary residence, unless the insured is living there when the theft occurs. It also excludes any theft of watercraft, outboard motors, trailers, or campers that happens away from your residence.

Home owners insurance provides funds to compensate you for the loss of use of your property, should it be damaged. There are 2 ways you can be compensated: payment for additional living expenses or payment for the fair rental value of the uninhabitable residence.

Don't be caught needing personal property homeowners insurance when it's too late, make sure you are covered for the necessary amount now.

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