What's The Difference Between Personal Liability and Personal Property Claims?
In a standard homeowners insurance policy, you have coverage for both Personal Liability and Personal Property.
Personal Liability Coverage
Coverage E - Liability - Personal Liability coverage pays for loss settlement and legal fees in the event that you or your family members cause bodily injury or property damage to others. I know everyone can be clumsy at times. For example, a neighbor slips on your porch and breaks elbow. He is a grumpy neighbor and sues you for the damages. This is when your personal liability coverage would step in to defend you in a lawsuit.
Where it won't step in is if you intentionally damage something or someone. If you start a bar fight and punch someone, your liability claim will be denied.
Personal Property Coverage
Coverage C - Personal Property - This covers damages and theft of your personal property. Personal property includes items like clothing, appliances, furniture, and stuffed animals laying around the house. When this stuff gets damaged or stolen by something covered in your policy, it comes out of Coverage C. It is important to note, there are usually special sub-limits for certain categories of items:
- $1,500 - Jewelry
- $1,500 - Computers
- $1,500 - Photo and Video Equipment
- $1,500 - Bikes
- $2,500 - Musical Instruments
- $2,500 - Golf Equipment
- $2,500 - Fine Arts
- $2,500 - Firearms
- $2,000 - Coin Collection
- $1,500 - Furs (wut?)
- $2,500 - Silverware (grandma?)
- $1,500 - Stamps...
- $1,500 - Postage...
If you have special high value items, such as that beautiful engagement ring, consider scheduling this item specifically so you know that it is covered.
Always ask for Personal Property Replacement Cost in your policy. This ensures that if your stuff gets damaged or stolen, it is replaced by the insurer in brand spanking new condition, not the old, used value (also called depreciated value). You don’t want stuff at the depreciated value, believe me.
At your service,