The portion of a homeowners or renters insurance policy that pays to repair or replace your belongings — furniture, electronics, clothing, and more — if they are damaged or stolen. Coverage typically applies both inside your home and anywhere in the world.
Related Terms
Replacement Cost
The amount it would cost to replace damaged or destroyed property with new items of similar kind and quality, without deducting for depreciation. Replacement cost coverage typically results in higher claim payments than actual cash value coverage.
Homeowners Insurance
A policy that bundles coverage for your home's structure, personal belongings, liability protection, and additional living expenses into one package. The most common form is the HO-3 policy, which covers the dwelling on an open-peril basis and personal property on a named-peril basis.
Renters Insurance
A policy for tenants that covers personal belongings, liability, and additional living expenses. It does not cover the building structure itself, which is the landlord's responsibility. Renters insurance is affordable — typically $15 to $30 per month — and is increasingly required by landlords.