Coverage C - Personal Property

Personal Property InsuranceInsurance for Personal Property is important, but often overlooked. What's included in personal property? It's what you put in the moving truck, or what would fall out of the home if you could pick it up and turn it upside down. Your clothes, furniture, electronics, toys, some appliances, and all the stuff in your garage. So how do you cover it? You will be asked to figure out what your stuff is worth. This can be a tough exercise. Let's be real, it's difficult to even keep track of what stuff you have. Lots of questions; few answers. So let's get to some answers:

First off let's start with taking inventory. We recommend taking a look at its a great website from the Insurance Information Institute, and they have several tools and an app and lots of information that can help you figure out what stuff you have, and what should be insured.

From there you can determine the value of your stuff and what it would take to replace it in the event of a claim, like a fire. Typically insurance companies will include a percentage of the value of the home for your personal property. In some cases its 70%, 50% or for others its 40%, but these are just rules of thumb, and more coverage can be purchased, but you have to have some idea of how much coverage you need.

There are two ways that personal property can be covered.

1. Replacement Cost - As always the replacement cost option is always the best option. In the event of a claim it replaces what was damaged with like kind and quality. Meaning you would be able to replace what was damaged with a new version. It does not account for depreciation.

2. Actual Cash Value - What is the value of your TV you purchased 5 years ago today? What's the value of the shirt you're wearing, if its the most comfortable you own, probably not much. In an actual cash value loss settlement situation, that's the question that comes to mind. Take what it cost new and depreciate it to figure out what it is worth today, and that is what the insurance company pays. That often means you are getting pennies on the dollar for your stuff. Not great for sure, but it is what is the cheapest, and most common way for people to insure personal property.

Typically you have a choice between Replacement Cost and Actual Cash Value for your personal property. This is a choice you should make based on your personal property and how important it is to you.

A few other cool things about insurance for personal property.

  1. If you have special property like jewelry, guns, furs, and other super cool stuff you will need to "schedule it." This means that you will want us to make a special note saying this stuff is covered,  because its usually is subject to limits.
  2. Your stuff, or at least a percentage of your stuff is often covered worldwide, even when its out of the house. Okay, it's not much, but 10% worldwide coverage can go a long way if you have a weird loss.

Gila Insurance Group LLC

805 W Court St. S
Safford, AZ 85546

Toll Free - (877) 784-6787
Local - (928) 428-6440
Fax - (888) 634-6384

About Gila Insurance Group

Customers choose Gila Insurance Group LLC as their insurance agent because they like being able to fill out one application online and then getting multiple quote from highly rated insurance companies. They like the friendly staff that takes the time to help them understand what they are purchasing. They like that the staff is trying to get the best coverage for them at an affordable price, and they LOVE that once they are customers Gila Insurance Group monitors their rates. If rates start to get out of hand they love that they have someone looking out for them to see if they can find a better option!

While Gila Insurance Group LLC serves Safford, Thatcher, Pima and all of Southern Arizona, they are also licensed in 32 states and serve clients from all over Arizona, California and this great Nation. Gila offers a variety of products including auto insurance, homeowners insurance, RV insurance, and business insurance. However, Gila has several specialties which include insuring investment properties such as rental properties, and fix and flip projects and Manufactured and Mobile homes.