Insurance · Homeowners Policies

What does Coverage C (Personal Property) typically include?

Correct answer

Personal belongings owned by the insured anywhere in the world, with sub-limits on certain categories (jewelry, firearms, cash, business property)

  1. A Only items kept in the home
  2. B Personal belongings owned by the insured anywhere in the world, with sub-limits on certain categories (jewelry, firearms, cash, business property)
  3. C Real estate only
  4. D Only items mentioned in an inventory

Why this is the answer

Coverage C covers personal belongings owned by the insured anywhere in the world. The standard limit is typically 50-70% of the dwelling coverage (Coverage A). Sub-limits apply to specific categories of property considered higher risk for theft or loss: jewelry and watches (often $1,500 limit for theft); firearms (often $2,500 for theft); silverware (often $2,500 for theft); cash (often $200); business property in the home (often $2,500); securities ($1,500); trailers and motors. Items exceeding sub-limits can be 'scheduled' — listed individually with documented values, often appraised — to obtain full coverage. Personal property at a residence other than the primary (vacation home) may have reduced coverage (often 10% of Coverage C). Personal property in storage is generally covered. Some property is excluded entirely: motor vehicles, aircraft (with limited exceptions), pets, and animals.
Source: NAIC Model Outline, Coverage C

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