Personal Property (Coverage C)

Named perils for contents

Coverage C on an HO-3 covers personal property for specific perils such as fire, windstorm, theft and certain water damage. If damage results from a cause that is not listed, contents may not be covered even though the dwelling is.

Valuation

Some policies pay actual cash value, meaning depreciation is subtracted. A replacement cost endorsement pays to replace items with new ones of like kind. The difference matters most for electronics, furniture and clothing.

Special limits

• Jewelry and watches for theft
• Cash and coins
• Firearms
• Silverware
• Business property kept at home

How the Coverage C limit is set

On most HO-3 forms the personal property limit starts as a percentage of the dwelling limit, and you can raise or lower it. Rather than accept the default, walk through each room and estimate what it would cost to replace the contents at today's prices. Clothing, kitchenware and furniture add up faster than most people expect.

Property away from home

Coverage C also applies to your belongings while they are away from the house, for example in a car, a hotel or a child's dorm room, though many policies apply a reduced limit to property kept at another residence. Items in a self-storage unit are generally covered for named perils, subject to the policy terms.

Keep a home inventory

• Take a video of each room, opening closets and drawers
• Photograph serial numbers on electronics and appliances
• Save receipts and appraisals for higher-value items
• Store the inventory in the cloud or away from the house
• Update it after major purchases

When a claim is paid

With replacement cost coverage, many insurers first pay the actual cash value and then pay the difference once you actually replace the item. Policies set a deadline for replacing items and claiming the balance, so read the loss settlement section. Your deductible applies to the claim as a whole, not to each item.

Frequently asked questions