Personal property coverage — Coverage C on a homeowners, condo, or renters policy — pays to repair or replace your belongings, such as furniture, clothing, electronics, and appliances, when they are damaged, destroyed, or stolen in a covered loss. It typically follows your belongings anywhere in the world and is commonly set between 50% and 70% of the dwelling limit on a homeowners policy.
How it works
Coverage C applies to the things you own that are not part of the structure: if you could turn the house upside down and shake it, personal property is what would fall out. On a standard HO-3 policy, personal property is covered against named perils (a specific list including fire, theft, windstorm, and others), while an HO-5 policy covers it on an open-peril basis. Settlement can be actual cash value or replacement cost, depending on your policy and endorsements.
Example (illustrative numbers): A burglary results in a stolen laptop, TV, and jewelry. The laptop and TV cost $3,000 to replace and are fully covered under a replacement cost contents policy, minus the deductible. The jewelry, worth $8,000, hits a special sub-limit for theft of jewelry of $1,500 — a common policy feature — so the policy pays only $1,500 for it. Scheduling the jewelry beforehand would have covered its full appraised value. Numbers and sub-limits are illustrative; actual sub-limits vary by carrier.
Why it matters for your policy
Most people underestimate what their belongings would cost to replace all at once — until they have to. Practical points that decide how well Coverage C works for you:
- Settlement basis: Replacement cost contents coverage pays for new items; actual cash value deducts depreciation. The premium difference is usually modest relative to the payout difference.
- Special sub-limits: Policies cap certain categories — jewelry, watches, furs, firearms, cash, silverware, collectibles — often at a few thousand dollars or less per category. High-value items need scheduled personal property coverage.
- Home inventory: A photo or video walkthrough of every room, stored in the cloud, turns a painful claims process into a manageable one.
Default percentages, sub-limits, and settlement bases vary by carrier and state, so check your declarations page and policy form rather than assuming.
Have questions about whether your belongings are covered the way you assume? Better Choice Insurance Group is an independent agency based in St. Charles, Illinois, licensed in 14 states. We’ll explain your options in plain English and compare coverage across our carriers — free, no pressure.
Related terms
- Scheduled Personal Property — An endorsement that insures specific high-value items at appraised values.
- Actual Cash Value — The settlement basis that deducts depreciation from claim payments.
- Replacement Cost — The settlement basis that pays for new items without depreciation.
- HO-5 Policy — A premium homeowners form with open-peril coverage on personal property.
- Dwelling Coverage — Coverage A, which sets the limit your personal property percentage is based on.
Frequently Asked Questions
Does personal property coverage apply away from home?
Generally yes. Standard policies cover your belongings worldwide, so a laptop stolen from your car or a suitcase lost from a hotel room can be covered, subject to your deductible and any sub-limits. Some policies reduce the limit for property usually kept at another residence, such as a college dorm - check your form.
How much personal property coverage do I need?
Enough to replace everything you own at today's prices. A room-by-room inventory is the honest way to find the number; most people are surprised how quickly furniture, clothing, kitchenware, and electronics add up. If the default percentage of your dwelling limit falls short, most carriers will increase it.
Why did my policy only pay a small amount for my stolen jewelry?
Standard policies apply special sub-limits to theft of certain categories, and jewelry is the classic example - often capped at roughly $1,000 to $2,500 total depending on the carrier. Items worth more than the sub-limit should be scheduled individually, which covers their appraised value and often removes the deductible.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent