Make sure you're properly covered — print this list to start building your home inventory.
What Is Itemized Personal Property?
As you go through your things, you may note that certain items are more valuable than others. And some of those items might have a set limit of coverage in your standard homeowners policy. For example, in the above table, we pointed out that your jewelry, gemstones, watches and fur have a coverage limit of $2,000 — meaning, in the event of a covered loss, we’ll only cover up to $2,000. But what if the jewelry and those other valuables you own are worth more than $2,000? That’s where itemized personal property comes into play.
Itemized personal property is an optional add-on to your policy that provides an increased level of coverage for more valuable items, like your jewelry, and also provides coverage for a greater number of risks. Remember the example above where you lost your wedding ring and you weren’t covered? With itemized personal property, you’re covered for this loss. In a nutshell, itemized coverage extends your coverage to provide protection for unexpected events beyond what’s listed in your base policy. It also allows you to insure your belongings to their appropriate current value.
Commonly itemized items include jewelry, musical instruments, art, antiques, a stamp or coin collection, firearms, bicycles, cameras, golf equipment and other types of valuables in your home. In order to get certain items covered, you may need to provide a recent receipt or professional appraisal.
Connect with your agent to itemize your personal property — they’ll be able to answer any questions and make sure you’re getting adequate coverage for your higher-end items.
Want to make sure your valuables, like your wedding ring, are fully covered? There are a number of optional coverages that offer more protection.
Personal Property Replacement Cost Coverage
If your personal property needs to be repaired or replaced due to a covered loss, they’ll be covered for their replacement cost value (RCV) rather than their actual cash value (ACV). This means we’ll repair or replace your property with new property of the same type, kind and quality. Whereas actual cash value pays for your items based on their current, depreciated value, taking into account factors such as age and condition.
Jewelry, Gemstones, Watches and Furs Coverage
This coverage provides open peril coverage for these items with two options available:
- $2,000 (per item)/$2,500 (total).
- $2,000 (per item)/$5,000 (total).
Standard policy deductible applies (minimum of $1,000).
Personal Property Increased Special Limits Coverage
This type of additional coverage increases your coverage limits on certain personal property categories, helping you better protect the full value of your personal belongings.
Replacing Your Personal Property: RCV vs. ACV
To understand your homeowners insurance, you’ll need to know the difference between replacement cost value and actual cash value. Both will help pay to repair or replace your belongings in the event of a covered loss, but how they cover you differs:
Actual Cash Value (ACV)
ACV pays you what your property is worth today. This means ACV takes into account the item’s age, condition and potential obsolescence (which is the loss of usefulness as a result of becoming obsolete or outdated). So if you bought a couch five years ago for $2,000 but that couch is now only worth $800, you’ll be compensated the amount that it’s worth today ($800).
Replacement Cost Value (RCV)
RCV covers you for the cost to replace your damaged property with new property of the same type, kind and quality. If you bought a couch five years ago for $2,000, but today it would cost $2,500 to buy a similar couch, you’d be covered for $2,500 (after your deductible is satisfied, of course). Similarly, if you bought a couch five years go for $2,000 but that same couch could be bought for $1,000 today, you’d be covered for that amount.
While ACV coverage typically means you pay a lower premium than if you have RCV coverage, having RCV coverage is a savvy choice because it’ll compensate you for the cost of replacing your damaged property. If you have ACV, you’ll have to pay out of pocket to fill in any gap that’s not covered if you choose to replace an item.
Simply put, you work hard for the things you own — if you want to replace the belongings you had before the loss, ACV offers less protection than RCV, making RCV a more popular choice among homeowners.
Here’s a closer look at RCV vs. ACV insurance coverage.
Personal Property Protection on the Go
One feature included with your homeowners insurance is that it protects your belongings when you’re on the go — no matter where in the world you find yourself. Whether your computer gets stolen while you’re working at a coffee shop or your camera is swiped from your hotel room, you’ll have peace of mind that no matter where you are, we’re looking out for you. Remember, coverage limits on your policy will apply to losses while on vacation, so it’s a good idea to connect with your agent before you travel to make sure you have the right amount of coverage for your personal belongings.
Personal Property Protection for Your Pets
Not only does personal property coverage protect all your favorite belongings — it can also protect your favorite family pet(s), like dogs, cats, birds and fish. When you add pet coverage, you can get $1,000 for veterinarian or funeral expenses for your pet as a result of a covered loss. Or consider pet insurance to protect your pet's health regardless of the cause.
Understand Your Deductible
If you file a homeowners insurance claim after a loss, you’ll be responsible for paying a deductible. A deductible is the amount of money you’ll pay out of pocket before we kick in to cover the rest. At American Family, you can set your homeowners deductible anywhere from $1,000-$10,000. It’s important to keep in mind that the higher you set your deductible, the lower the cost your premium will be, and the lower your deductible, the higher your premium will be.
Are you ready to protect the space you call home? Connect with your American Family Insurance agent to learn more about how your homeowners insurance protects your personal property. And get in the know by taking a look at our home insurance checklist for a step by step guide on how to navigate the home insurance process.
*Your policy excludes water damage due to sewer back-up, septic back-up and sump overflow unless special coverage is purchased for this type of loss. Please see your agent for details on this coverage.
This coverage is not available in MN at this time.
Some coverages may not be available in your state or on your specific policy form. Please speak with your agent to learn more about your coverage options.