Scheduled personal property coverage: what it is and how it works
Personal property is a standard coverage on a homeowners insurance policy. It covers belongings like furniture and clothing, paying up to a certain limit if they are stolen or damaged by a covered peril. However, for high-value items like jewelry, fine art or musical instruments, you’ll likely need to add a scheduled personal property endorsement to your policy to insure them for their full value.
What is scheduled personal property coverage?
Scheduled personal property coverage is an optional coverage that policyholders can add to their home insurance policy. Certain items, such as jewelry, watches, artwork and more, have limited coverage under the general personal property coverage that is automatically included in a home insurance policy. Scheduled personal property coverage allows policyholders to secure higher policy limits for added financial protection in the event these items are stolen or damaged in a covered claim.
A scheduled personal property endorsement allows you to list your specific high-value property with a specific cost associated with each piece. You’ll likely need to provide an appraisal or proof of value for this option. Alternatively, some homeowners insurance companies offer a package with increased blanket coverage that does not require an appraisal. If the basic policy includes coverage up to $1,000 for jewelry, for example, you may have the option to increase the coverage to $5,000 or more to cover all jewelry items. Note that both methods of expanding coverage for personal property will likely increase your premium.
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What does scheduled personal property cover?
Though specific limits and exclusions vary by insurance company and policy type, most homeowners insurance policies limit certain personal items in the standard policy. For example, if a high-value item is stolen, there may be a payout cap of $500 or $1,000 and you might be responsible for paying your deductible.
Often, a home policy will cover your possessions up to the specified limit while on the insured property (“on-premises”). It will cover a smaller portion of the value of items when they are lost or damaged “off-premises.” However, if you schedule your personal property, you are covered for its full value on- and off-premises.
With scheduled personal property, you also typically get:
- Accidental loss coverage, also called mysterious disappearance
- Accidental physical damage coverage
- $0 deductible for scheduled personal property claim (unless the policyholder chooses a higher deductible)
How scheduled personal property coverage works
Here’s an example of how scheduled personal property coverage could apply. Say you lost or misplaced your engagement ring. You would likely not have sufficient coverage under a homeowners policy. But if the ring was scheduled, you may be able to recoup the cost without paying a deductible. Scheduled personal property is also generally covered on an open perils basis, which means all loss types are covered unless they are specifically excluded in the policy documents.
Types of valuables covered by scheduled personal property
The list below is not meant to be exhaustive. It represents the most common personal property items that can usually be scheduled for their full value. After checking the limits on your homeowners insurance policy, consider scheduling these items if they are over the limit:
- Antiques
- Bikes
- Cameras
- Certain electronics (laptop, media equipment, etc.)
- Collections (cards, coins, stamps, etc.)
- Fine art
- Firearms
- Furs
- Jewelry
- Medical devices
- Musical instruments
- Rugs and tapestries
- Silver or goldware
- Sporting equipment
Generally, it is best to consider scheduling a high-value item that is not fully covered under a standard homeowners policy. For instance, losing or breaking your prized golf club at the course will not be covered under standard homeowners policies. However, scheduling your golf club could provide that coverage. It is up to you and your insurer to determine what is beneficial to schedule. In many cases, sentimental items that are lower in value may not be worth scheduling.
Do I need a scheduled personal property endorsement?
If you own a high-end bike, expensive jewelry or antiques handed down in your family, you may want to purchase scheduled personal property coverage. Review the policy sublimits for these items in your homeowners insurance policy (reach out to your agent for help, if needed) to see if any of the items listed above are valued higher.
Example of insurance sublimits
For instance, if your policy specifies a $1,500 coverage limit for jewelry but you have $15,000 worth, you may want to schedule the more expensive pieces — or all of them — if you want broader coverage.
This can be accomplished through a scheduled personal property endorsement, or you could consider blanket insurance coverage with a higher coverage limit. For example, increasing jewelry coverage from the basic homeowners policy sublimit of $1,500 to $3,000 on a blanket policy may be all that is needed. Blanket coverage may be more cost-effective than scheduling each item. However, check with your insurer to understand if the items you want to insure can be covered under a blanket policy.
Remember, if you choose not to schedule your personal property and not to insure it with blanket coverage, claims will likely be limited to the covered perils listed in your homeowners policy. The claim will also be subject to your homeowners policy deductible, which affects the payment amount you receive to replace or repair the item.
Frequently asked questions
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Scheduled personal property can cover high-value items not covered or not covered in their entirety by standard personal property coverage, but this endorsement may have some limitations, depending on your carrier. Scheduled personal property will not cover any items not specifically listed in the policy. You may want to get a professional appraisal for any items you plan to insure using scheduled personal property to ensure you have enough coverage.
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Most insurance companies will ask for a detailed receipt, appraisal or other certified document proving the item’s value and listing the specific attributes of the item, including serial numbers and other identifying details. Photos of the items, including identifying markings, may be required (and are a good idea even if they are not required) to provide as much detail about the item as possible in case it is stolen or lost. A home inventory of all your possessions is ideal and can help you out with any home insurance claims you need to make.
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Blanket insurance or coverage is a term for policies covering more than one item or type of property. For instance, homeowners insurance is a form of blanket insurance because it covers the home’s structure and the personal possessions within it. However, you can add higher blanket coverage limits to your policy for specific types of items like jewelry. You could add $50,000 of blanket coverage for jewelry, and then your policy would pay out up to that amount on covered losses. That differs from scheduling personal property in that you can cover all your jewelry with this blanket coverage. In contrast, you would have to cover each item individually if you were using scheduled personal property coverage.
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If you do not own high-value items or if the homeowners policy sublimit is enough coverage for you, it may not be worth the extra cost for additional coverage. The price for scheduled personal property is determined by the carrier, item and value but is generally inexpensive compared to the cost to replace an item, if it is replaceable.
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