Understanding Personal Property Insurance: What's Covered & Excluded

Personal property insurance is generally incorporated in a homeowner's policy. However, this insurance does not cover the costs of damage or loss of some belongings found within the premises of your abode.

Coverage Limitations/Exclusions

Though personal property insurance covers contents of your home like furniture, clothing, refrigerators, washing machines, and other household appliances, some personal properties stored inside the home are not protected by the policy. Items that might be excluded from the insurance coverage are:

• rare items - collectibles such as antiques, oriental rugs, paintings, collector's items, sculptures, and other forms of expensive artwork
• monetary items - bullion, coins, money
• personal documents - bank notes, passports, securities, bills, accounts, tickets
• motorized land or water vehicles - watercraft, boats, motorcycles
• valuable jewelry - wedding rings, watches, necklaces, precious gemstones
• garments made of real fur
• musical instruments
• sports equipment
  

Also, any item which cost exceeds the limit stipulated in the policy will not be reimbursed by the insurance company.

Named Perils Not Included in the Coverage

In circumstances where the insured property is damaged or lost due to the occurrence of flood or earthquake, the policy will not pay you for it. You must buy a separate, special coverage for these specified catastrophes, or your belongings will not be replaced.