It may come as a bit of a surprise to learn that personal property coverage is not part of some of the homeowner’s insurance policies. The fact of the matter is that you’d need to get a separate policy in order to cover the loss and damages of your personal property in the event something happens to it. Discuss this and more with a knowledgeable agent from Easley Hedrick Insurance & Financial of the Richmond, VA area.
What is personal property insurance?
This is a type of coverage used for your possessions after they’ve been damaged due to theft or bad weather. The two categories are known as named peril and open peril. Fire and vandalism are examples of named perils, while open perils included any other kind of peril as long as it’s not excluded in the policy terms. Many of these policies don’t cover flooding and earthquakes.
How much personal property insurance do you need?
Be sure to check your home insurance policy declaration page to see the amount of coverage you have for your personal possessions. You’ll find all types of coverage that are included in your policy there. The limit of coverage for personal property is what tells you the amount you have in your existing policy.
What happens if you decide you want more coverage? Typically, such a policy will be on average 20 to 50 percent of the coverage limit for your home’s structure.
Your personal property can be determined for this purpose in two different ways. They are known as replacement cost value and actual cash value. Replacement cost value only covers the true value to replace the item, while actual cash value replaces the destroyed or damaged property at the property’s worth when you factor in depreciation.
It is a good idea to have extra coverage for your possessions. That’s because you may have items that add up to higher value than the limit in your standard policy. Talk to your independent Easley Hedrick Insurance & Financial agent for assistance with this in the Richmond, VA region.