Scheduled Personal Property

Scheduled personal property insurance is a supplemental insurance policy that goes beyond the standard coverage provided by a homeowners' insurance policy. Owners can ensure full coverage of expensive items, such as jewelry, in the event of a claim by purchasing a scheduled personal property policy.

Understanding Scheduled Personal Property

Scheduled personal property coverage goes above and beyond the coverage provided by standard homeowners' policies. Standard policies do not cover all types of property and place limits on how much the insurance company will pay for specific losses.

Fine artwork, antiques, jewels, furs, and gold coins or bars are examples of possessions that may have limited coverage under standard policies. Policyholders who want to protect these and other items should get additional coverage through a scheduled personal property policy.

Coverage on a standard homeowners policy is divided into categories such as

  • The dwelling itself
  • Other structures, which include items such as sheds, fences, and the mailbox
  • Personal property
  • Loss of property use
  • Personal liability and medical coverage.

Clothing, shoes, furniture, appliances, and other items are all covered under most policies as personal property. However, the coverage value for each item is limited. Electronics, firearms, business property, and watercraft may be subject to restrictions. Some companies may even cover your personal property if it is damaged while you are away from home, but the dollar amount of coverage may be limited. Property owned by others may be covered under a standard policy in some cases.

How Scheduled Personal Property Coverage Works

Policyholders receive a complete copy of their policy, which is typically at least 20 pages long. The policy specifies the monetary value for standard coverage in various categories. For example, your policy may state that losses of watches, precious stones, and other jewelry are covered up to $1,500. People who have collections worth more than the maximum coverage amount should consider purchasing supplemental scheduled property coverage.

The insurance provider will assign a different value to the insured property. Before providing coverage, most companies will require copies of either a receipt or an appraisal of the item.

Scheduled personal property coverage provides three distinct benefits in addition to the benefits of a standard insurance policy:

  1. The scheduled personal property policy is based on the cost to replace the property, with no regard for depreciation. A traditional homeowner's policy, on the other hand, covers the property on an actual cash value basis. Actual cash value is calculated by insurers by taking the replacement cost and depreciating the item.
  2. Protection extends to losses other than those covered by the homeowner's policy. Traditional coverage, for example, may cover a loss caused by a fire or theft. If the policyholder loses or damages the insured item, scheduled personal property coverage may cover it.
  3. On scheduled items, policyholders are not required to pay a deductible.