When homeowners insurance comes to mind, people usually think about the coverage it offers for the house itself, such as the roof, walls, and foundation. However, your personal property is also a big part of your policy. Protecting our valuables and belongings is essential, and while your policy has you covered, the coverage isn’t uniform. There are coverage limits that are based on the specific type of property. This is where the difference between scheduled and unscheduled personal property comes into play. Let’s take a look at why these designations are significant.
What is Scheduled and Unscheduled Property?
It’s helpful to understand was unscheduled personal property (UPP) entails before digging into scheduled personal property (SPP). The following is how each term is defined by your insurance carrier:
- Unscheduled Personal Property: This refers to items covered by your policy that typically are of low value in the grand scheme of things, like electronics, clothing, and jewelry. These belongings don’t need to be listed in a separate section – or “schedule” – of your insurance contract.
- Scheduled Personal Property: Alternatively, SPP consists of valuables that exceed the limited covered dollar amount of certain items in your homeowners insurance. SPP may include fine art and heirlooms and requires supplementary coverage.
Each of these items is covered differently by your insurance, so it’s important to understand the definition of each term.
What’s the Coverage Limit for Unscheduled Personal Property?
Homeowners or renters insurance can either offer coverage according to the actual cash value of the item or the replacement cost. Many insurance carriers have a minimum percentage of coverage – such as 50% for actual cash value and 6% for replacement. Most of the time, you can increase these limits based on your needs, but this will, of course, increase your insurance premiums. However, it’s important to keep in mind that more expensive items, like high-end jewelry, antiques, or artwork, are often subject to a sub-limit, which is why you may choose to schedule some of your personal property.
How is Scheduled Personal Property Covered?
Since there is a limit on the covered dollar amount, you may opt to schedule some of your personal property to obtain more coverage. SPP acts as a supplemental policy that extends coverage beyond that provided by standard homeowners, renters, or condo insurance. Policyholders who wish to purchase additional coverage for items with limited coverage will invest in an SPP policy. For standard insurance homeowner policies, coverage is divided between categories such as the dwelling itself, detached structures, and personal property, but an SPP policy places expensive items in a category all their own.
Should You Schedule Your Personal Property?
Since what qualifies as UPP varies between carriers, you should discuss with your insurance agent which of your belongings fall outside your policy’s definition of UPP. They’ll review the terms of your policy and detail the dollar amount provided by your standard coverage for various categories. Say your policy covers a maximum of $25,000 for a single piece of jewelry, but you own a watch that’s worth $40,000, it may be worth it to invest in an SPP policy. People with coin collections should especially look into this policy, as homeowners and renters policies usually offer little coverage for currency.
Knowing the differences between scheduled and unscheduled personal property can help you make informed decisions when it comes to your belongings. If you suspect you have possessions that exceed your homeowners or renters policy limits, you should get in touch with your agent. At TJ Woods Insurance, our agents will inform you of the homeowners policy that provides the best coverage for your needs and will let you know if you can benefit from further protections like SPP. If you’re curious about which of your belongings may not be fully covered, contact us today.
