What is the best way to cover contents in a vehicle?
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Asked July 12, 2011
Insurance policies do not typically cover personal property carried within a vehicle. Some types of comprehensive insurance may cover limited amounts of personal property, but most policies limit the coverage to items that are installed or otherwise permanently attached inside the car. Other personal property may be covered under the personal property section of your home or renters insurance policy, but you will need to read that policy carefully to find out how it will relate to items inside a vehicle.
Even when personal property is covered, it will probably only be insured for the purchase price minus depreciation. This means that a 3 year old item may be covered, but that the claim settlement will only be for about 50% of the purchase cost, or even less. Additionally, homeowners and renters policies only provide a certain percentage of the policy coverage for personal property, usually capping the coverage between $2000 and $5000. If you are transporting equipment or other property with a greater value than your home insurance policy covers, you will need to purchase additional coverage on your home policy or and separate personal property insurance plan.
Anyone who routinely carries more than $2000 of personal property would be covered best by purchasing a personal property rider, called a Scheduled Personal Property policy. This type of policy is added onto your existing policy and covers the property that would otherwise not be included in your normal coverage, up to the value of the rider and minus the depreciation of the items insured.
Answered July 12, 2011 by Anonymous