What Is Covered Under Personal Property Insurance?

Personal property insurance is a great add-on to have for your homeowners insurance policy as it affords extra coverage for things that might not be included under a standard homeowners policy. It’s important to understand what types of items are covered (and under what circumstances) before deciding to add personal property protection to your insurance policy. Understanding this information now can help you avoid claims filing headaches down the road should a qualifying emergency occur.

What Is Personal Property Insurance?

A personal property insurance policy is designed to protect the belongings inside your home, including furniture and appliances. Put simply, anything you own inside or outside your home is considered personal property and may be covered under specific circumstances outlined within your policy agreement.

Personal property insurance helps homeowners recoup the costs of repairing or replacing items that have become damaged due to a qualifying event. The amount of financial assistance you receive will be determined by your policy’s limit of liability — the maximum amount your provider will pay out for a single loss. This information is typically outlined on your home insurance’s declarations page.

What Types of Damage Does Personal Property Insurance Cover?

Coverage kicks in for personal property insurance when your personal belongings have become damaged during a qualifying event. The specific types of losses and damages covered by your insurance will depend on the type of policy you have: named peril or open peril.

Named Peril Policies

Named peril personal property insurance policies are those that offer coverage against specific losses (or perils). In a standard HO-3 policy, the following named perils are most commonly covered:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Vandalism and malicious mischief
  • Theft
  • Falling objects
  • Weight of snow, ice, or sleet
  • Accidental discharge or water overflow
  • Sudden and accidental damage to a water heater or HVAC equipment
  • Freezing
  • Power surges
  • Volcanic eruption

Open Peril Policies

In some cases, a homeowner may opt for an open peril or “all-risk” policy. This policy is the most comprehensive form of personal property insurance. It covers your personal belongings against all types of damage or losses except for the specific perils outlined in your policy agreement. One of the biggest benefits of an open peril policy is that policyholders do not carry the burden of proof when filing a claim. Rather, the onus is on the insurance company to prove that the claim isn’t covered based on the excluded perils listed in the policy. Perils that may be excluded from an open peril policy include:

  • Earthquakes
  • Flood damage
  • Mold
  • Foundational damage from tree roots
  • Faulty construction
  • General wear and tear
  • Corrosion
  • Pests
  • Intentional damage
  • Natural settling, cracking, shrinking, or expanding of the foundation

Where Can You Find a Personal Property Insurance Policy?

At Evans, Ewan & Brady, our team has helped homeowners find the personal property coverage best-suited to their needs for nearly 100 years. Through our personalized approach, we help each customer understand their options, allowing them to make informed decisions about their personal property protection. Find the right policy to protect your personal belongings by contacting Evans, Ewan & Brady at (512) 869-1511 to receive a personal property insurance quote from our team!

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