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, it’s 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 what’s 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
  • It’s 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, it’s good to know you’d 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.

By: KayLynn P.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

No Needles, No Problem: Unveiling the Secrets of Life Insurance Without a Physical Exam

Life Insurance Made Easy: Skip the Physical, Get Covered Today!

Beyond Million-Dollar Contracts: Why You Need Athlete-Level Protection (Even Without the Millions!)

Health is Wealth: Why You Need Insurance Protection, Even Without a Pro Athlete’s Salary

Don’t Be a Policy Poltergeist: Haunt Your Life Insurance with a Check-Up!

Life Insurance: Is Your Policy a Ghost in the Machine? Get a Free Review!

Beyond the Funeral: 9 Reasons Why You Need More Life Insurance Than You Think

Life Insurance: Not Just for Buryin’! Unexpected Costs You Never Knew Were Covered

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