Does Special Property Need Special Coverage? - Part 1

[Return] to Part 2

Limited Coverage For Certain Property

The typical homeowners policy offers plenty of coverage for personal property, usually offering a limit equal to half of the amount reserved for the residence (ex. Your home is covered for $150,000, so your contents and furnishings are covered for $75,000). While this is generous coverage, it doesn't extend to all types of property for all causes of loss. Certain types of property, because of its high value and liquidity, is far more vulnerable to loss...either easily destroyed, easily stolen or both. For instance, an insurer protects your sofa right along with your fur coat for the same basic premium, but the two types of property don't represent the same chance loss. Recognizing this fact, insurers put more restrictions on the coverage provided by a basic policy. Theft Coverage Limitations

When property is lost due to theft, coverage under a standard homeowner policy is severely limited (generally between $1,000 - $2,500) for the following types of property:

Other Coverage Limitations

Several categories of property are subject to very modest limits (generally between $200 - $2,500) of coverage, regardless of the cause of loss (theft, fire, accidental breakage, etc). Specifically:

  • money, bank notes, coins, medals, gold, silver and platinum (other than jewelry or dinnerware)
  • securities, accounts, deeds, tickets, stamps, manuscripts, passports and similar property
  • watercraft and related property including their trailers
  • trailers not used with watercraft
  • business property located in your residence
  • business property located away from your residence
  • certain types of electronic property (CD players, VCRs, TVs, radios, computers )and related accessories) which is lost or damaged while in a car or is located away from your home and used for business.

Please refer to part 2 on how to get more coverage for these classes of personal property.

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