Sunday, September 10, 2017

Personal Property Coverage

Personal property insurance coverage can cover your belongings, such as furniture, clothing, sporting goods or electronics, in the event of a covered loss – whether they get damaged at your home or apartment, or anywhere in the world.

What is Personal Property Coverage?

Travelers’ homeowners, condo and renters policies provide coverage that can compensate you for personal items, such as furniture, clothing and electronics that are damaged in a covered loss. The personal property coverage part of your policy can cover your personal belongings while at home or anywhere in the world.
Under most Travelers policies, covered personal property losses are settled based on actual cash value at the time of loss, but not more than the reasonable amount required to repair or replace the damaged item. In most instances, actual cash value is the reasonable cost to repair or replace the damaged item, less a deduction for depreciation.
Replacement Cost Option
Travelers offers an optional coverage — personal property replacement cost loss settlement — that provides for settlement of covered personal property losses based on replacement cost at the time of loss,with no deduction for depreciation. When purchasing your homeowners policy, you'll need to decide whether you want the actual cash value personal property coverage generally included in a homeowners policy or the optional replacement cost coverage. Both are subject to applicable policy limits and deductibles.
Optional Endorsements Available
Some classes of property, such as the below examples, may have a limited amount of coverage available based on the type of claim:
  • Money or related property, coins and certain precious metals.
  • Watercraft, including trailers and equipment.
  • Jewelry, watches, furs and semi-precious stones.
  • Silverware, goldware or pewterware.
Additional coverage may be available for these items and other personal property using optional endorsements or separate policies.
For example, you can insure jewelry, furs, silverware and other possessions on a valuable items plus endorsement or on a personal articles floater policy.
What May Not Be Covered
Keep in mind that certain damage is not covered by homeowners insurance as the policy contains terms, conditions and exclusions. For example, if your property is damaged in an earthquake, the damage is typically not covered unless you have purchased earthquake coverage. Similarly, damage from a flood is not covered unless you have purchased a separate flood policy. Special limits may also apply to certain property.