What is Personal Property Coverage?
Personal property is insurance lingo for “your stuff”.
Personal property simply means “the stuff you own”-from bikes to laptops, TVs, and jewelry. The relevant coverage for all this stuff is known as Coverage C on renters insurance policies.
TL;DR
- Personal property coverage protects things like electronics, clothing, and furniture. It may also extend to property temporarily left in your home by friends or family.
- Your car, pets, and property owned by roommates or landlords (such as appliances) are excluded from personal property coverage.
- Standard renters policies cover your valuables against named perils like fire and theft, with options to add additional coverage for certain items.
- Determine coverage by estimating your belongings’ value and rounding up to the nearest $10k.
Personal property coverage in insurance
Did you know renters insurance covers the stuff you own against certain damages and theft (including theft that occurs outside of your home)? You’d be surprised to hear that a lot of people, especially renters, are unaware of this fact.
Personal property coverage, referred to as Coverage C in your insurance policy and also known as contents insurance, applies to your stuff in the event of a covered loss (more on that in a bit).
What’s considered ‘personal property,’ you’re wondering?
Well, it’s basically everything you own, that isn’t a part of your place. So, for instance, it doesn’t include the physical structure of your rented apartment, or appliances your landlord owns. But it does include your personal electronics, books, clothing, furniture, and so on.
FYI, personal property coverage is also extended to property that friends and family may have temporarily left at your place.
For example, say a burglar broke in and stole your friend’s single-speed bike while you were both out at your local watering hole. Their bike would be considered personal property under your policy when it was stolen, and your insurance policy would likely cover the loss (if your friend’s insurance doesn’t already).
What isn’t considered personal property
Things that wouldn’t fall under the definition of personal property in your insurance policy (even if you own them) are cars and any other motorized vehicle (learn how car insurance has your back here,) or animals, including birds and fish.
Are you a drone fanatic? These fantastic flying machines aren’t covered in most states, though they are covered in New York, California, and Virginia-read more here.
Anything owned by landlords, roommates, or boarders also isn’t covered either.
So if you Airbnb your spare room, and your temporary tenant’s stuff that was ruined by a burst pipe? Not covered by your insurance. Your landlord’s couch that came with your furnished apartment? Not covered either. The walls of your home? Well, since you’re a renter, and you don’t own the building, the physical structure of your home would fall under your landlord’s insurance.
Examining named perils and personal property coverage
Standard renters policies cover named perils-bad things that may happen to your stuff-including fire, lightning, windstorm, hail, smoke, vandalism, theft, freezing, damage from aircraft or vehicles, and riots, to name a few.
So, if a fire in your kitchen destroys your stuff, or someone breaks in and steals your TV, you’re covered by your personal property coverage.
That said, some types of property have sublimits, which means there is a maximum amount your insurance will cover you for. This maximum is usually lower than the personal property coverage limit you choose. Always check your policy to see what sublimits might pertain.
Jewelry, for example, has a $1,500 sublimit for losses due to theft. So even if you chose a $10,000 amount for your Coverage C, a base policy would only cover jewelry theft up to $1,500 (after you’ve met your deductible).
Not to worry, though! If you’ve got certain types of valuables-like engagement rings, or fine art, or musical instruments-you can schedule personal property (what we at Lemonade call adding Extra Coverage) for the stuff you care about at a relatively small additional cost. When you add Extra Coverage for specific items of jewelry, they’ll no longer be subject to that $1,500 maximum sublimit we just mentioned.
Bonus: The items that have Extra Coverage will also be covered for accidental damage and mysterious disappearance, deductible-free! A friendly tip though… make sure you have all the documents, receipts, police report, and any other info you can get for a swift claims process.
Personal property coverage in real-life situations
Understanding personal property coverage becomes a lot clearer when you see it applied to real situations. Here are some common scenarios renters face, and how Coverage C typically responds, along with important caveats to keep in mind.
Laptop stolen at a coffee shop
You leave your laptop unattended for a moment and it’s gone. Because personal property coverage extends off-premises, your renters insurance may cover the replacement cost of your laptop, minus your deductible. Note: coverage for theft outside your home may be subject to a percentage of your total Coverage C limit depending on your policy.
Fire destroys your apartment’s contents
A kitchen fire spreads and damages your furniture, electronics, and clothing. Fire is a named peril, so your renters insurance covers it. If you have replacement cost coverage, you’d receive enough to buy equivalent new items. With actual cash value coverage, payouts reflect depreciation, meaning a 5-year-old sofa would be worth far less than what you paid.
Your roommate’s TV is damaged during a storm
Hail breaks a window and water damages your roommate’s television. Your personal property coverage does not apply to belongings owned by roommates. They would need their own renters insurance policy to file a claim.
Engagement ring lost under mysterious circumstances
You notice your engagement ring is missing but can’t figure out what happened. Standard personal property coverage does not cover mysterious disappearance for jewelry. But if you’ve added Extra Coverage for that specific ring, mysterious disappearance is covered, and with no deductible.
Belongings damaged during a move
Items stored in a moving truck are damaged when the truck is involved in an accident. Personal property coverage may extend to belongings in transit, though it’s worth confirming your policy’s off-premises provisions and any applicable limits before moving day.
A guest’s camera is stolen from your home
A friend leaves their expensive camera at your place overnight and it’s stolen. Your personal property coverage may extend to property temporarily left at your home by guests or family, even if they’re not on your policy, as long as your friend’s own insurance hasn’t already covered the loss.
Every situation is different, and the outcome of a claim depends on your specific policy terms, coverage limits, deductible, and the cause of the loss. When in doubt, review your policy documents or speak with your insurer before assuming coverage applies.
How much personal property coverage do I need?
Do yourself a favor and go over these three simple steps to save time (and money) later:
- Walk around your home, and take pictures (or a video) of your personal property
- Make a list of valuable items, and estimate how much they cost
- For bulk items like shoes, or kitchen supplies, just estimate a nice round number
- Add all of this up and round up to the nearest $10K to determine how much coverage you’ll need
For example, if you have $27K worth of items, you should choose a personal property coverage amount of $30K.
Basic policies start with $10,000 of personal property coverage. Increasing that amount to $30,000 may be a smart move, especially since the effect on your monthly premium might not be that dramatic.
Personal property coverage FAQs
What is personal property coverage in renters insurance?
Personal property coverage, also called Coverage C, protects the belongings you own, including electronics, clothing, furniture, and jewelry, against covered losses like theft, fire, and vandalism. It’s a standard component of renters insurance policies.
Does personal property coverage apply outside my home?
Yes. Personal property coverage typically extends beyond your home. If your laptop is stolen from your car or your bag is taken at a coffee shop, your renters insurance may cover the loss, subject to your deductible and policy limits.
Are my belongings covered if I move or travel?
Personal property coverage generally follows you, meaning belongings temporarily stored in a moving truck or kept in a hotel room may still be covered against named perils. Always check your specific policy for off-premises coverage limits.
Does renters insurance cover personal property damage from water leaks?
It depends on the cause. Sudden and accidental water damage, like a burst pipe, is typically covered. Flooding from external sources (like a river overflowing) is generally not covered by a standard renters policy and requires separate flood insurance.
How much personal property coverage do I need?
Walk through your home, photograph your belongings, and estimate their value. Add it all up and round up to the nearest $10,000. If your belongings are worth $27,000, choose $30,000 in Coverage C. Basic policies start at $10,000.
What is the difference between actual cash value and replacement cost for personal property?
Actual cash value (ACV) pays the depreciated value of your belongings at the time of loss. Replacement cost value (RCV) pays what it would cost to buy a new equivalent item today. RCV policies typically cost more but offer stronger financial protection.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC. The statements do not apply to policies underwritten by other carriers.
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