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What Does Personal Property Damage And Theft Insurance Cover?

Published: December 31, 2021

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Theft and personal property damage insurance are types of coverage that are generally included with homeowners, renters, flood, or earthquake insurance and payout on a per-occurrence basis for loss or damage caused by an assigned risk. In the insurance industry, the meaning of danger refers to the risks associated with filing a claim. Stolen goods, shattered window glass, and vandalism, for example, might be listed as risks connected with theft or burglary on an insurance policy. Each policy will have a list published by the firm defining the risk and covering if such an occurrence occurs.

You will note that each policy is unique. Each personal property damage or theft coverage will include a substantial package of documentation known as a policy. This is the material you will need to carefully read to understand what you are and are not insured for.

A typical homeowners’ insurance policy, for example, may state that your personal possessions are only covered in the case of specific dangers – meaning that what caused the loss or damage to your personal property must be mentioned for you to obtain reimbursement from an insurance claim. The following is a list of some common risks that are frequently covered by homeowners’ insurance.

  • Fire
  • Lightning
  • Explosion
  • Windstorm
  • Hailstorm
  • Water leak, overflow, freezing of plumbing
  • Impact by aircraft or unowned vehicle
  • Smoke
  • Electrical
  • Vandalism
  • Robbery
  • Theft
  • Broken Window
  • Riot

What is the coverage for theft and personal property damage insurance?

Now that you are aware of the dangers, you must prepare and recognize the actual objects that comprise your personal property. For insurance coverage, items are often classified as follows:

Personal property on or temporarily removed from the premises
This includes your possessions within your home or on the property where your home is located, like the backyard, pool area, garage, or shed.

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Personal possessions in storage
This includes seasonal things such as paintings, clothing, and other items stored between seasons.

Uninsured personal belongings of others in your possession
This includes goods that you do not own but are temporarily on your property, such as a friend’s or family member’s loaned belongings.

Insurance providers will cover a specific sum to replace the item under the set categories. They may, for example, have various terms of coverage for each category of commodities. Items in each category will also have a class assigned to them.

Limitations are almost certainly present, with your provider stating the maximum amount that they will pay per item, category of products, and/or per occurrence for loss or damage caused by an insured hazard. Often, the limit per item is insufficient to replace high-value things like pricey jewelry. Under these instances, you might consider acquiring supplementary coverage in the Scheduled Personal Property Insurance category. Certain objects may also be subject to restrictions based on the kind of loss. For example, some things, such as jewels and guns, may be restricted to only being covered if stolen.

A list of common sorts of objects that are commonly covered by a conventional personal property insurance policy is provided below.

  • Money including credit and debit cards, banknotes, or gift certificates
  • Share certificates
  • Bonds
  • Data files
  • Clothing
  • Furniture
  • Decorations
  • Tools
  • Jewelry
  • Books
  • Instruments
  • Electronics
  • Televisions
  • Computers
  • Computer Software
  • Home appliances
  • Watercraft
  • Lawnmowers
  • Snowblowers
  • Trailers
  • Jewelry
  • Video Games
  • Collectibles
  • Bikes
  • Paintings
  • Pictures
  • Sculptures

As you can see, a good homeowner or renter insurance policy should cover almost everything you possess within your house. Some insurance may even cover the food in your refrigerator or freezer if it is lost or destroyed as a result of a disaster. This is why it is beneficial to retain receipts not just for tax purposes but also in the case of personal property loss or damage.

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