When you think about what makes your house a home, it’s often the personal belongings inside — furniture, electronics, clothes, and keepsakes. That’s where Coverage C, also known as Personal Property Coverage, comes into play in your homeowners insurance policy.
This coverage helps protect the things you own if they’re damaged, destroyed, or stolen due to a covered event.
What Is Personal Property Coverage?
Coverage C pays to repair or replace your personal belongings when they’re affected by a covered peril such as fire, theft, vandalism, hail, or windstorms. It’s a standard part of most homeowners insurance policies and offers critical protection for the items you use every day — and the ones that matter most.
Commonly covered items include:
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Furniture
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Clothing
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TVs and electronics
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Laptops and desktop computers
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Sports gear
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Kitchenware and appliances (that aren’t built-in)
It’s important to note: Only damage caused by a covered peril qualifies for reimbursement, and policies may vary in what perils are included.
Two Types of Personal Property Coverage
Not all personal property coverage works the same way. Home insurance policies typically offer one of two options:
1. Actual Cash Value (ACV)
This is the more affordable option, but it factors in depreciation. You’ll be reimbursed for what the item is worth today — not what you originally paid for it.
Example: If you bought a TV five years ago for $2,000, you might only get $800 from a claim due to its age and current market value.
2. Replacement Cost Value (RCV)
This option covers the full cost to replace the item with a new one of similar kind and quality, without depreciation. It offers broader protection — and a higher premium — but ensures you can fully replace lost or damaged items.
Example: That same $2,000 TV from five years ago? With RCV coverage, your policy could pay out the full amount to replace it with a similar new model.
If you own high-value or quickly depreciating items (like electronics or designer wardrobes), replacement cost coverage is often the smarter choice.
How Much Coverage C Do You Need?
That depends on what you own. There’s no one-size-fits-all answer, since personal belongings vary widely from household to household.
A student in a small apartment may only need coverage for a laptop, a few electronics, and clothes. Meanwhile, a family in a fully furnished home with multiple rooms of furniture, appliances, and valuables will need significantly more protection.
Here’s how to estimate your needs:
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Create a home inventory: List your belongings room by room.
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Include purchase prices and the year of purchase.
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Add it all up to get an estimate of the total value.
This will give you a clearer picture of how much Coverage C you should have — and whether your current policy provides enough.
Final Tip
Keep in mind that high-value items like jewelry, art, or collectibles often have separate coverage limits and may require additional protection through scheduled personal property endorsements.
For the best protection, talk to your insurance agent about your belongings and whether your current Coverage C limits are adequate for your lifestyle.
