How Much Personal Property Insurance Do I Need?

Insurance companies provide personal property insurance policies to protect your assets from unforeseen circumstances.

Mishaps are inevitable. As humans, we can’t stop or alter the way the universe works. What we can control is having a solid back-up plan in case of such incidents.

Most mishaps cause financial troubles for people; an accident will make you pay hospital bills, theft of assets will cost money to revive them back and damage to property will have a heft repair sum. Whatever the incident, there will be a financial blow.

Which is why it is always advisable for you to stay ahead of such mishaps by having a financial contingency plan in action. What is that? INSURANCE!

Insurance policies help you cushion the financial blow in case you’re caught up in an accident and have to pay for damages or personal expenses. Property insurance is also one type that helps you protect your property.

Let’s get into more detail.

Personal Property Insurance Definition

A personal property insurance coverage provides protection to your assets in case of such accidents, so anything that is lost or damaged is compensated by the insurance company.

Property insurance works as an umbrella for several other policies like homeowner’s insurance, flood insurance, renter’s insurance etc. personal property is basically everything you own, and a loss that you have to bear on that property including any liability costs is compensated by a personal property insurance.

Personal Property Insurance Coverage

Naturally, personal property insurance covers the cost of damage or loss to your personal property. There are three types of personal property insurance coverage types:

  • Replacement cost: The cost to replace your damaged or lost items is given to you by the insurance company.
  • Actual cash value: The actual cash value is given; for instance the item damaged was seven years ago. The value of the item 7 years ago will be given, not of the new one.
  • Extended replacement cost: To take into account the cost of construction that has gone up due to inflation, the replacement cost is extended and increased. However, this limit may not exceed 25%.

Examples of Personal Property Insurance Coverage

Here are some routine examples of mishaps and losses that are covered by the insurance company.

  • Your assets like TV, fridge, laptop etc. are stolen from your house. You will be paid the actual cash value of the items.
  • An electric pole falls on your roof with pressure and creates a big hole, the cost of repair as well as your temporary accommodation will be compensated by the insurance company.
  • A fire breaks out in your house and most assets are destroyed as well as the house. Everything damaged including the house interior/exterior is also compensated.

Personal property insurance normally excludes damage caused by floods, natural disaster, seeping groundwater, draining issues and other sources of water damage. Other than these, theft, vandalism, damage or loss due to other reasons like lightning or fire are all covered under the insurance.

Insurance Rates by State

Cost rank State Average insurance cost
1 Oklahoma $2,559
2 Kansas $2,461
3 Texas $2,451
4 South Dakota $2,364
5 South Carolina $2,321
6 Minnesota $1,952
7 Montana $1,939
8 Missouri $1,914
9 North Dakota $1,901
10 Alabama $1,850
11 California $1,826
12 Colorado $1,813
13 Nebraska $1,749
14 Florida $1,727
15 Georgia $1,713
16 Connecticut $1,712
17 Louisiana $1,568
18 Arizona $1,528
19 Michigan $1,493
20 Mississippi $1,442
21 New Jersey $1,430
22 Iowa $1,421
23 West Virginia $1,416
24 Rhode Island $1,414
25 Kentucky $1,407
26 Illinois $1,405
27 Maryland $1,392
28 Alaska $1,356
29 Virginia $1,341
30 Wisconsin $1,313
31 New Mexico $1,284
32 Wyoming $1,263
33 Arkansas $1,250
34 Tennessee $1,241
35 Washington $1,235
36 Ohio $1,214
37 Oregon $1,208
38 Massachusetts $1,168
39 Hawaii $1,083
40 Nevada $1,047
41 North Carolina $992
42 New York $974
43 Idaho $940
44 Indiana $901
45 Maine $849
46 New Hampshire $773
47 Utah $711
48 Pennsylvania $640
49 Vermont $614
50 Delaware $598

Note: Sample rates have been extracted online, courtesy of ValuePenguin.

Some states are considered as most expensive for homeowner’s insurance depending on a number of factors such as the location, insurance companies competition etc. Even if you’re in an expensive state where the insurance cost is naturally very high, there are ways where you can actually lower your premiums.

How much personal property insurance do you actually need?

Depending upon many factors like location and the coverage you need, you can decide how much to go for. If you live in a secure area where the risk of threat is relatively low, you probably need a low amount of coverage.

By paying a high deductible amount, you will have to pay lower premiums. A deductible amount is set when you’re buying the policy- and this is the amount that you have to pay for an expense before the insurance company chips in. Moreover, by having a clear credit history and a good insurance record, you can get a very good deal with premiums even if your state has a high cost of insurance.

Typical insurance policies provide homeowners insurance personal property percentage of up to 50% of the value of your home, and the items such as jewelry are covered up to a certain dollar amount.


Insurance companies give policyholders the option to protect their assets and other personal property in case of theft or loss. If any mishap happens, the insurance company sends an agent to take notes of all the damage caused and then either the money is given to the policyholder or the items are replaced.

It is important that you stay ahead of accidents by insuring your personal property; assets like your TV, laptop etc. are one time investments, people don’t go off buying those every month. In such a case where these things are not only expensive but also valuable, you need to protect these through personal property insurance.

Head to the nearest insurance company to find a suitable policy for yourself!

Sandra Johnson

Sandra Johnson

Sandra Johnson was a few years out of school and took a job as a life insurance agent in California, selling coverage door-to-door for Prudential. The experience taught her about the technical components of insurance and its benefits for individuals and society, as well as the misunderstandings people often have about insurance. She has over ten years’ experience in the insurance industry, having worked as both a Broker and Underwriter, assisting clients across a broad range of industries. At Insurance Noon, Sarah diligently gathers all the required information and curates up pieces to provide meaningful insurance solutions. Her personal value proposition is to demonstrate a genuine interest in always adding value for clients.Her determined approach to guiding clients has turned her into a platinum adviser to multiple insurers.

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