2. Does homeowners insurance provide coverage for all types of personal property damage?
What is Personal Property in Homeowners Insurance?
Homeowners insurance is an important coverage to have for times when accidents or incidents result in damage to your home or belongings. One of the most common types of coverage included in a homeowners policy is personal property insurance. Understanding what this coverage is and how it works is essential for any homeowner to know.
What is Personal Property Insurance?
Personal property insurance, also known as contents insurance, covers the items found inside your home. This could include furniture, electronics, clothing, jewelry, and other belongings. It covers losses caused by a variety of perils, such as theft, vandalism, fire or wind damage. It can also provide coverage for items away from home, including items left in storage or when you’re traveling.
What is Covered?
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- Replacement Cost: coverage for items will be based on the cost to replace them with new items of like quality and kind.
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- Replacement Value: coverage for items will be based on what you originally paid for the item.
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- Additions and Alterations: This covers any improvements you may make to the items you own, including structural changes, plumbing and electrical changes.
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- Loss of Use: If you’re unable to use your home due to a covered loss, this coverage can help you pay for the associated costs of a temporary place to live while repairs are being made.
What is Not Covered?
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- Floods: Flooding is not covered by a standard home insurance policy and most insurance companies offer separate flood insurance.
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- Earthquakes: Earthquake coverage isn’t covered by a traditional home insurance policy and must be purchased as a separate policy.
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- Damage from Pests: Damage caused by pests is not generally covered by a standard home insurance policy.
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- Umbrella Policies: Umbrella policies are designed to provide additional coverage that’s not already included in your regular home insurance policy.
Personal property insurance is an important part of any homeowners policy and it’s essential to understand the coverage that is provided and the coverage that is not provided. Be sure to speak with an insurance agent to ensure you have the right level of coverage to protect your belongings.