Personal Possession Insurance: What is it?
Personal possession insurance is a form of personal insurance that will cover special items like clothing or electronics. As long as it is not a building or a vehicle, you can generally cover it with personal possession insurance. However, in order to get the proper coverage, it is generally needed to specifically mention these items within the agreement. In most cases, this form of insurance is just a part of a larger plan to cover the property of a person, but it is also possible to get this insurance independent of that. For example, one may prefer to independently insure fine jewelry since the value goes beyond what the plan will permit.
In most cases, this insurance should be discussed when getting home insurance or renters insurance. It also helps to know how much the possessions would be evaluated. Some plans only cover the item cost, which has a tendency to depreciate, while others will pay for replacing the item based on how much it costs in the store. Not every plan is the same, and many think it is better to receive the cost of replacement provided the premiums are not too much of a burden.
Possessions within a car, such as a stereo or CDs, can generally be covered under the standard auto policy. However, there tends to be a limit on the amount that a policyholder can claim after an item is stolen from the car. This is why you should find out what this amount is and figure out what you can and cannot claim through this insurance policy should something be stolen from your vehicle.
As previously stated, some expensive possessions can be insured independently. Note that there will be some constraints for items that cannot easily be replaced. For instance, some special jewelry might need to be in a safe within a home that has a strong system for security.
In most cases, those who have personal insurance on an item are simply seeking the ability to replace an item lost in theft or due to a disaster. These individuals may find insurance with small limits or that will only provide the amount the item would sell for to be insufficient, though it can still solve some financial hardship.
Depending on the finances of the individual, there are numerous different policies that can work for the situation and the items that are going to be protected under the policy.