Contents or Personal Property coverage is usually prepackaged as a percentage with a homeowners insurance policy. Even if you've payed down your mortgage or have a lower balance, as long as there is a mortgage, the bank holding the note will insist you have dwelling and subsequently personal property protection.
A California home insurance policy will also typically provide coverage for the contents of your home including furniture, electronics, clothing and other personal belongings. You may elect to buy specialized homeowners coverage that provides additional protection for your contents (and dwelling) beyond the standard coverage limitations in most homeowners policies.
The "contents" limit can be around 50% of the dwelling amount; the most accurate source on the replacement value of the contents inside your home is you. Inventory ALL personal property when calculating the contents limits. The home insurance company can set limits or refuse to cover different types of personal property like:
- Jewelry
- Silverware
- Collectibles
- Antiques
- Firearms
- Personal computers
- Fine art
- Cash
- Gold, Silver and other bullion
If you own personal property valued above the special limits set in your policy, consider adding an endorsement (aka "floater" or "rider") to your policy which raises your limits. Contact your home insurer or representative to figure out how to cover any personal property that is valued above the limits. Do not forget regular household items when calculating your contents limit. People mainly calculate their larger, more expensive purchases and forget to calculate all the many things you need to run your house like toasters, kitchen utensils, dishes, linens, blinds, shades, window coverings, etc. Remember, personal property also includes clothing, shoes, accessories, mementos and personal items.