Scheduled Personal Property: What it is, How it Works

What Is Scheduled Personal Property?

Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy. By purchasing a scheduled personal property policy, owners can ensure full coverage of expensive items, such as jewelry, in the event of a claim.

Understanding Scheduled Personal Property

Scheduled personal property goes beyond the coverage offered in standard homeowners' policies. Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses.

Examples of possessions that may have limited coverage from standard policies include fine artwork, antiques, jewels, furs, and gold coins or bars. Policyholders wishing to guard these and other items should purchase additional coverage with a scheduled personal property policy. 

On a standard homeowners policy, coverage divides into categories including 

• The dwelling itself
• Other structures, which include items such as sheds, fences, and the mailbox
• Personal property
• Loss of property use
• Personal liability and medical coverage.

Personal property on most policies include clothing, shoes, furniture, appliances, and other items. However, there are limits for the coverage value for each item. Property such as electronics, firearms, business property, and watercraft may have limitations. Some companies may even cover your personal property if damage occurs when you are away from home, but there may be a limit on the dollar amount of coverage. In some situations, property owned by others may also be covered under a standard policy.

How Scheduled Personal Property Coverage Works

Policyholders receive a full copy of their policy, which usually runs at least 20 pages. The policy details the dollar amount for the standard coverage of various categories. As an example, your policy may state that it will cover a maximum of $1,500 for losses of watches, precious stones, and other jewelry. People with collections that are valued at more than the maximum coverage amount should consider supplemental scheduled property coverage. 

The assigning of the value of the insured property will vary by the insurance provider. Most companies will require copies of either a receipt or an appraisal of the item before providing the coverage. 

Scheduled personal property coverage provides three specific advantages that extend beyond the benefits of a standard insurance policy:

1. The cost to replace the property forms the basis of the scheduled personal property policy, and depreciation is not a consideration. In contrast, a traditional homeowner’s policy covers the property on an actual cash value basis. Insurers calculate actual cash value by taking the replacement cost and accounting for depreciation of the item.  
2. Protection extends to additional types of loss above that covered by the homeowner's policy. For example, traditional coverage may cover the loss from a fire or theft. Scheduled personal property coverage could cover the item if the policyholder loses or damages the insured item.
3. Policyholders are not subject to a deductible on scheduled items.