Insurance Term of the Day: Personal Property Insurance Coverage
What is personal property insurance on a homeowners policy?
Also discussed: What is the difference between named peril and open peril homeowners insurance?
There are multiple aspects that make up our insurance policies. We may not fully understand each section of the contracts made with our insurance carriers. However, itโs important that we learn and understand what the contract specifies–it includes our coverages and limits. That way, if we must file a claim, we will know what the insurance company will and will not cover, based on the agreed contract.
Have you ever heard of whatโs called personal property insurance on your homeowners policy? What is it?
Personal property insurance covers your your valuable possessions or assets, other than the home itself, very simply put. The details of the coverage are not so simple, though.
Not only does this insurance provide coverage for items inside the home, it can provide coverage for your property outside of your home too. From destruction of property, a fire causing a loss, to a thievery, the coverage depends on what type of policy you have.
There are two common forms of homeowners policies.
Named peril: The standard homeowners policy is called an HO2, which provides open peril coverages. Named peril means that the policy explicitly names specific coverages provided by the policy by name. That which is not covered is completely excluded from the policy. Unless the peril is specifically listed, there is no coverage. Some of the common perils on this homeowners policy includes the following :
- Fire
- Theft
- Vandalism
- Explosions
- Falling objects
- Lightning
- Hail
- Smoke damage
- Wind
- Itโs important to remember that these specific things are not always included in your policy, and there are usually more inclusions listed on the policy. This is just naming a few. Every policy will vary, depending on your insurance company.
Fun Fact: Your homeowners policy has strange occurrences included in the policy, such as volcanic eruptions near your home, or damage caused by a crashing aircraft. Although these incidents are not extremely common, itโs good to know youโd have coverage if this did happen to you!
Another type of homeowners policy is called all other perils. This is essentially the opposite of named peril. There is coverage provided for your belongings by any kind of damage–except the damages explicitly excluded on your policy.
Specific exclusions could be:
- Earthquakes
- Floods
- Mold
- Pet damage
- Corrosion
- Natural wear and tear
- There are typically many more listed, this is just naming a few of them.
Each insurance policy will list the specific coverage limits and your deductible amount, which plays a role in how much you will be paid out on a claim.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Life Insurance Myths Busted: Unveiling the Simple Truths Behind Financial Security
Considering life insurance but confused by the myths? We clear the air on common misconceptions and show you how to get simple, affordable coverage.
The Farewell Financial: Planning a Peaceful Goodbye
Beyond Goodbyes: A Guide to Navigating Funeral Costs and Life Insurance
Why Life Insurance Matters for Businesses
Death and the Business Owner: How Life Insurance Can Secure Your Legacy
Beyond the Grave: Burial Insurance vs. Life Insurance Explained
Don’t Be Buried by Confusion: Understanding Burial and Life Insurance
From Bronze Age to Boomers: How Life Expectancy Went From Meh to Magnificent
How Long Will You Live? A Look at Life Expectancy Throughout History (and Why You Might Need Life Insurance)
Beyond “My Beloved Spouse”: A Guide to Choosing Your Life Insurance Beneficiary
The Beneficiary Bunch: Understanding Your Options
Life on the Edge? How Your Hobbies Can Affect Your Life Insurance Rates
Beyond the Premium: Unveiling the Unexpected Links Between Hobbies and Life Insurance
Unveiling the Different Players (and Why We’re Your Guide!)
Insurance Companies: Not All Created Equal! Find Your Perfect Match with Our Help
Cracking the Code: Cash Value, Loan Value, Surrender Value – It’s All in the Life Insurance Policy!
Beyond the Death Benefit: Unlocking the Hidden Gems of Your Life Insurance Policy
Beyond the Payout: 6 Unexpected Perks of Life Insurance You Might Not Know
More Than Just a Payout – Unlock 6 Hidden Gems for Your Loved Ones