What does personal property (contents) damage cover?

Your personal property is generally all property that is not covered by the home or auto insurance policy. Personal property can be thought of in 3 categories: your personal effects, your household property, and outdoor or incidental property.

Your personal effects begin with your clothing and jewelry. This includes shoes, hats, and home decorations such as pictures, statues and things of the nature. Your drapes and bed linens would fall into this category, along with towels and blankets. Your personal effects are the things that make your home seem like home and without which you would feel lost.

Household property includes your furniture, your home entertainment systems, the microwave, and your home computer. Some of these items may be covered under your homeowners insurance, but make sure that everything is clearly listed in your home inventory.

The third group contains things such as your skis, the lawnmower, the playground equipment, and the content of your workshop or garage. These items may not be used as frequently as others, but they hold sentimental and recreational value, and represent a financial investment which should be protected.

Personal property insurance will only cover a certain amount of total loss, and that amount may be specified for different items. For instance, your jewelry may have a maximum claim of $5000, or the policy itself may limit personal losses to a percentage of the total home policy value. Check your policy carefully, and consider picking up extended coverage if your current insurance able to protect all of your precious assets.