Should Homeowners and Renters Have a Personal Insurance Policy?

Personal property includes the things a person owns, such as electronics, clothing, jewelry, and furniture. Whether one owns a home or rents an apartment, an insurance policy usually includes personal coverage. Below are several things to consider when protecting a house full of belongings with a Personal Insurance Policy.

How Much Coverage is Available?

There are two kinds of personal property insurance: those that cover the item’s replacement cost and those that pay actual cash value. It’s important for policyholders to know that personal property insurance usually has limits on what the policy will pay to replace certain items or categories of items.

What’s Covered by Renters’ Insurance?

Many renters believe that a landlord’s insurance policy covers their belongings after a loss. While the landlord’s insurance protects the structure from certain perils, the coverage doesn’t extend to the renter’s belongings. Renters’ insurance can protect a person’s possessions up to the policy’s coverage limit.

Homeowner’s Insurance Coverage

Along with providing liability and dwelling protection, many homeowner’s insurance policies include personal property coverage up to the policy limit. If a home is damaged by a named peril, the insurer helps cover lost belongings. Coverage is subject to the policy’s limits and terms, and it’s important for policyholders to carefully read the policy documents or ask an agent if they need clarification.

Lost Items

Most renters’ and homeowners’ policies don’t offer lost item coverage. If a valuable item is stolen, insurance will likely cover it. However, if it’s left behind or lost, it likely won’t be covered. Scheduled personal property insurance can be bought for specific items; an agent can provide more specific details.

Scheduled Property

While a customer may find that a renters’ or homeowners’ policy offers protection for their belongings, the coverage often comes with limits for certain property types and items. An insurance agent can help a customer determine whether they should schedule certain items, or buy separate coverage for the additional protection of valuable items like musical instruments, art, or jewelry.

While homeowners’ and renters’ insurance policies offer valuable protection, in some cases, it may not be enough. For additional information or to buy a Personal Insurance Policy, visit us at schlatherinsurance.com.

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