Personal Property Insurance for Items Not Covered by Homeowner’s Insurance
While personal-property insurance is employed to expand your current coverage, personal property insurance also is used to insure items not eligible for coverage under your homeowner’s insurance policy.
If you pay rent for your living quarters, your personal property located within your residence is not covered by your landlord’s insurance. Ask your insurance agent about deploying relatively inexpensive renter’s insurance to protect your property if you live in a residence that you do not own.
Do you use a portion of your home as your personal office? Some homeowner’s insurance policies do not cover the contents of your personal office, such as computer equipment, art or collectibles. Other policies don’t compensate you if you’re are unable to use your at-home office for some reason.
Talk to your insurance agent about whether it’s a good idea to provide full supplemental insurance coverage for your in-home business office.
Insurance companies in Florida can delineate in your contract one of two ways for determining the replacement value of your personal property:
- Actual cash value
- Replacement cost
Actual cash value, which includes a depreciation determination, is the most popular method used by insurance companies for calculating personal-property replacement value. Ask your insurance agent whether your property is worth valuing under the replacement-cost method.
Questions to ask your insurance agent about personal-property insurance include:
- How well does my homeowner’s insurance cover my personal property?
- Does the value of my personal property exceed my insurance coverage?
- Do I need coverage for my property when I take it away from home?
- What’s the price difference to use replacement cost over actual cash value?
- Do I need supplemental personal-property coverage for my home office?
- If I rent, should I purchase renter’s insurance for my personal property?
- Is it worth it to pay extra to use replacement cost as the valuation method?