Personal property insurance is a big part of your home insurance policy. Yet some homeowners don't realize the full scope of what this important coverage can do or why they need it. That's where we come in.
what is personal property insurance?
Your valuables are more than just things. They're a big part of your home and perhaps even your livelihood. And like any investment, it only makes sense to secure your stuff against the unpredictable.
Esurance can help you do just that. In plain English, personal property insurance (sometimes called contents insurance) is the part of your homeowners policy you use for the belongings in your home, like electronics, furniture, and clothing. If a covered risk like a fire leaves your valuable possessions damaged, or they're stolen in a burglary, you'll be able to repair or replace them. That way, you can keep your home and wallet just the way you like them: full.
With home insurance from Esurance, you'll be able to customize a policy as unique as your possessions. And with top-quality licensed agents, an A+ rating from A.M. Best* for our financial security, and the dependability of an Allstate company, we can help you bring home the most coveted thing of all — peace of mind.
items covered under personal property coverage
When it comes to rare or specialty items, exactly what is and isn't covered under home contents insurance varies by insurer. But most policies, including those from Esurance, do cover a similar array of common belongings, such as:
- Electronics (TV, laptop, etc.)
- Refrigerator contents
- Jewelry (may be limited, depending on insurer)
- And more
your coverage amount: actual cash value vs. replacement cost
In most personal property claims, Esurance will reimburse you the replacement cost of your stolen or damaged items. If claim amounts pass a certain threshold, however, it's possible that settlements could be paid based on actual cash value (ACV). But what's the difference?
It's pretty simple, really. With ACV, the amount you receive for damaged or stolen items includes depreciation. So for example, say you file a claim for a stolen TV. While you purchased it several years ago for $2,000, by now it's dropped in value to $500. Your reimbursement would be calculated from what the TV is worth today.
With replacement cost, on the other hand, you can get back what the item was worth when it was purchased. So if you bought that TV for $2,000, then your reimbursement would be based off that same amount. Again, this is the most common option for Esurance policyholders.
Regardless of your settlement method, it's wise to take a thorough home inventory of all valuables in the home. That way, you know just what your stuff is worth and you can plan contents insurance limits that make sense for you.
covering high-priced items
Certain belongings may be worth more than your home contents insurance can cover. Such items could include a wedding ring, a rare coin collection, or fine painting, among many others.
In this case, you may want to consider an insurance rider, also known as scheduled personal property. This gives you the extra boost of protection you need for those luxury items that surpass your normal coverage.
more perks of personal property insurance
Even if you don't think you have many valuables worth insuring, you might be surprised. Things like vintage vinyl records, oriental rugs, and dusty old electronics are all good examples of hidden treasures that might be stashed in your home. Having ample contents insurance helps ensure that in case of a burglary or other covered mishaps, you have protection for all your assets, obvious and not-so-obvious.
Another little-known benefit of personal property coverage is that it can even protect your belongings on the go. Whether your tablet is nabbed from your car or your watch goes missing from a hotel nightstand, you can enjoy security that makes you feel right at home.
6 ways to reduce burglary risk
Keep your stuff safer from theft by applying these easy tips.
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