How much personal property coverage do i need?

Personal property coverage protects your belongings — furniture, electronics, clothing, jewellery and more — from theft, fire, damage or other covered perils. Knowing how much coverage you need ensures your possessions are properly protected without being under-insured.

🟩 Quick Definition 

Personal property coverage is the amount of insurance that protects the content of your home (not the home structure itself) and should reflect the full value of your belongings under a replacement cost or actual cash value basis.

How to Determine the Right Coverage Amount

1. Conduct a Detailed Home Inventory

List your major belongings room by room: furniture, books, electronics, appliances, clothing, decor, jewellery, collections, sports gear and tools. Assign replacement costs. Experts say this is the most accurate way to estimate needed coverage.

2. Use a General Percentage Rule

Many homeowners policies set personal property coverage at 50 % to 70 % of the dwelling coverage limit. For example, if your dwelling is insured for $300,000, your personal property coverage might default to $150,000–$210,000. Adjust upward if your inventory exceeds that.

3. Consider Your Lifestyle & High-Value Items

If you own expensive jewellery, antiques, collectibles, high-end electronics or lots of valuables, your standard policy may have sub-limits for those items (for example jewellery only covered up to $2,500). In that case you’ll need a scheduled item/endorsement for full protection.

4. Choose Replacement Cost vs Actual Cash Value

• Replacement cost: pays to replace items with new ones of similar kind/value — higher premium but stronger protection.

• Actual cash value: pays replacement cost minus depreciation — lower premium, but higher risk of being under-insured.

5. Review Regularly & Update When Things Change

Re-evaluate after major purchases, renovations, lifestyle changes or moving to a larger home. Keeping your coverage aligned with your current belongings avoids gaps in protection.

FAQs

Q1. Is my personal property covered automatically?
Yes — standard home, renters or condo policies typically include personal property coverage, but the amount may not match the full value of your belongings without adjustment.

Q2. Can I rely solely on the default coverage amount?
Not always. If your belongings go beyond the default coverage (roughly 50-70% of dwelling limit) or you have high-value items, you should increase limits or add endorsements.

Q3. What happens if I’m under-insured?
If you suffer a loss larger than your coverage limit, you’ll pay out-of-pocket for the difference. Under-insurance is a common source of financial stress after a claim.

Q4. Do I need a separate policy for valuables?
Often yes — for high-value items like jewellery, art or collections, you may need to “schedule” them with a separate endorsement to ensure full value is covered beyond policy sub-limits.

Q5. How much extra does scheduled coverage cost?
It varies by insurer and item value, but adding scheduled personal property often costs only a modest premium relative to the value of the item.

Final Thoughts

To avoid being under-insured, align your personal property coverage with the full replacement value of your belongings. Start with an inventory, use the 50-70% of dwelling value guideline where applicable, account for high-value items with special endorsements and update your coverage regularly. With the right amount in place, your possessions will be protected with peace of mind.