Personal Property Insurance Coverage

Coverage for Personal Property

Under Forms 2, 3, and 5, the personal property limit is 50 percent of the housing limit. When there is a need for more coverage, this restriction may be increased. If the insured does not own personal property worth 50% of the dwelling's value, the limit can be reduced, but it cannot be reduced below 40%. The minimum personal property coverage under Forms HO-4 and HO-6 are $6000. Of course, if necessary, the Personal Property coverage can be raised under any of the forms.

All forms of personal property insurance have the same coverage: we cover personal property owned or used by any insured when traveling anywhere globally.

First and foremost, coverage is available for both owned and rented property. If an insured borrows property from a friend and the property is damaged or destroyed due to an insured risk, the homeowner's policy will cover the property as if it were the insured's own.

Any insured's property reference, whether owned or used, provides coverage for any persons who meet the criteria of insured. The named insured ("You"), residents of the named insured's household who are relatives of the insured, and other persons under the age of 21 who are under the care of the named insured or a resident relative are all defined as "Insured" in the policy definition. Full-time students who were inhabitants of the household before going out to attend school are also covered if they are under the age of 24 and related to the insured, or under the age of 21 and the care of the insured or a resident relative.

Except for one exemption, the whole personal property coverage applies "everywhere in the globe." Coverage for personal property in a secondary house is limited to 10% of the Coverage C limit, with a $1000 minimum. For instance, if the insured has a vacation cottage, personal property coverage is limited to 10% of total Personal Property coverage. 5 Property located outside of the premises is protected up to the maximum limit provided for personal property with this exception.

If the insured requests it at the time of loss, coverage extends to property owned by others while on the part of the premises occupied by the insured and the parcel of a visitor or residence staff while in any residence occupied by the insured. The insured's requirement to obtain coverage for other people's property is intended to safeguard the insured if the value of other people's damaged or destroyed property, when added to the insured's destroyed property, exceeds the coverage limit.