The typical homeowners policy offers plenty of coverage for personal property, usually offering a limit equal to half of the amount reserved for the residence (ex. Your home is covered for $150,000, so your contents and furnishings are covered for $75,000). While this is generous coverage, it doesn't extend to all types of property for all causes of loss. Certain types of property, because of its high value and liquidity, is far more vulnerable to loss...either easily destroyed, easily stolen or both. For instance, an insurer protects your sofa right along with your fur coat for the same basic premium, but the two types of property don't represent the same chance loss. Recognizing this fact, insurers put more restrictions on the coverage provided by a basic policy.
When property is lost due to theft, coverage under a standard homeowner policy is severely limited (generally between $1,000 - $2,500) for the following types of property:
Several categories of property are subject to very modest limits (generally between $200 - $2,500) of coverage, regardless of the cause of loss (theft, fire, accidental breakage, etc). Specifically:
Please refer to part 2 on how to get more coverage for these classes of personal property.
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