Personal property coverage
Personal property coverage pays to repair, replace, or compensate for covered damage to or loss of your movable belongings, such as furniture, clothing, electronics, and appliances. It usually appears as Coverage C on homeowners, condominium, and renters policies. Your limit, deductible, exclusions, special sublimits, and valuation wording determine what the insurer pays.
Also called: personal property, coverage c, personal effects
When you read a policy or a quote, four facts tell you what this coverage is worth: which belongings are covered, the dollar limit, whether payment is actual cash value or replacement cost, and the deductible and special limits that can reduce a payment. The Connecticut Insurance Department (opens in a new tab) notes that some items carry separate limits or need another form of insurance, and the wording of your own policy controls the final answer.
How a contents claim adds up
Start with the limit. If a policy has a $100,000 dwelling limit (Coverage A) and Coverage C set at 50% of Coverage A, the personal property limit is $100,000 × 50% = $50,000. California's published standard policy format (opens in a new tab) uses 50% of Coverage A for homeowners and mobile-home policies.
Now add a covered fire that destroys $10,000 of belongings, a policy with replacement-cost coverage and a $1,000 deductible. The dwelling limit, loss and deductible in this example are illustrative.
Hover or tap a row to highlight it.
| Step | Amount |
|---|---|
| Coverage A dwelling limit | $100,000 |
| Coverage C limit (50% of $100,000) | $50,000 |
| Covered loss to belongings | $10,000 |
| Deductible you absorb | $1,000 |
| Initial payment ($10,000 minus $1,000) | $9,000 |
The insurer pays $9,000 initially when the loss is covered and your inventory supports the amount claimed. Some replacement-cost policies pay actual cash value first and release the withheld depreciation once you replace the items.
Options and amounts that change the payment
Each choice below moves either the premium, the payout or both.
- Limit: Condominium and tenant policies in California use a stated dollar amount, and Texas Department of Insurance materials (opens in a new tab) describe percentages of dwelling coverage, including 10% to 20% in some Texas policies. A higher limit raises the maximum for a covered loss and generally raises the premium.
- Lower Connecticut option: Connecticut homeowners filings made on or after July 13, 2020 can offer Coverage C as low as 20% of Coverage A, with the discount disclosed on the declarations page, according to a Connecticut Insurance Department notice (opens in a new tab). A lower limit can reduce premium and leaves less insurance for belongings.
- Actual cash value: The insurer subtracts depreciation for age and wear, which often falls short of what replacement costs, according to the NAIC (opens in a new tab). It can cost less than replacement-cost coverage.
- Replacement cost: The insurer pays to repair or replace with materials of like kind and quality, within the limit and policy conditions. The NAIC says this generally pays more at claim time and generally costs more.
- Scheduled items: A scheduled endorsement or a separate personal-articles policy can provide a higher stated limit for jewelry, firearms and similar items, and it generally adds premium.
- Deductible: Connecticut says homeowners deductibles vary by company, and options such as $500 or $1,000 may be offered at a reduced premium, according to the Connecticut Insurance Department (opens in a new tab).
Where you will see this coverage
In a homeowners policy it is usually Coverage C under Section I, Property Coverages. A renters policy treats it as the main property coverage, because the landlord's policy generally covers the building and not your belongings. A condominium unit-owner policy covers your belongings and may also cover certain improvements, betterments or alterations. Mobile-home and dwelling policies carry it too.
On paper, look for it on a quote, declarations page, binder, renewal notice or coverage summary. After a loss it shows up in a claim inventory request, a proof-of-loss form and a settlement letter. Endorsements can change limits, valuation or covered property. Auto policies generally cover the vehicle, not ordinary belongings inside it.
What Connecticut and New York change
Connecticut sets claim steps in the statutory fire policy form. Under Conn. Gen. Stat. § 38a-307 (opens in a new tab), you give notice, protect the property, separate damaged from undamaged personal property, furnish an inventory and provide a proof of loss, generally within 60 days unless extended in writing. Our guides to Connecticut homeowners insurance and Connecticut renters insurance cover the rest of a Connecticut policy.
In New York, contents coverage is usually issued on an actual-cash-value basis unless you buy an endorsement for replacement cost, according to the New York DFS homeowners and tenants guide (opens in a new tab). The policy's loss-settlement provisions control, and Regulation 64, 11 NYCRR § 216.6 (opens in a new tab) defines actual cash value, unless law or the policy says otherwise, as the lesser of the reasonable cost to repair the property or replace it with a substantially identical item, including sales tax.
Questions to ask your agent or insurer
- What is my personal property limit, and is it a fixed dollar amount or a percentage of dwelling coverage? The limit sets the maximum for covered belongings and varies by policy and state filing.
- Are my belongings covered at actual cash value or replacement cost? Actual cash value subtracts depreciation, while replacement cost generally pays like-kind replacement within the policy conditions.
- What special limits apply to jewelry, firearms, money, electronics, collectibles, business property and property away from home? These categories commonly have lower sublimits or exclusions, and scheduling may be needed.
- What deductible applies, and are there separate deductibles for wind, hail, hurricane, theft or other causes of loss? The deductible reduces the payment and may vary by cause.
- What documentation will you need if I file a claim? Connecticut says (opens in a new tab) the insurer must pay only for property you can show you owned at the time of loss, and an inventory, receipts, photographs, serial numbers and appraisals can support ownership and value. See how much renters insurance you might need when setting a limit.
Frequently asked questions
Is this the same as dwelling coverage?
No. Dwelling coverage protects the home's structure, while personal property coverage protects belongings inside the home and, within limits, away from it. The dwelling limit can be used to calculate the personal property limit, as with Coverage C at 50% of Coverage A, but the coverages are separate. A higher dwelling limit does not mean every item is fully insured.
Are jewelry and collectibles fully covered?
Not necessarily. Policies commonly set special limits on jewelry, money, firearms, collectibles and antiques, and a scheduled-property endorsement or separate policy may be needed for a higher limit, according to the New York DFS (opens in a new tab).
Does it cover my belongings in a car or away from home?
Homeowners or renters insurance may cover them, subject to policy terms and the off-premises limit. In New York, the Department of Financial Services (opens in a new tab) describes a common limit of 10% of the personal property limit, and Texas materials (opens in a new tab) describe limits of 10% or 20% depending on the policy. A lower off-premises sublimit can restrict payment for items in storage or at another residence.