There are so many questions you have to ask yourself when assessing whether or not you have proper home insurance coverage. Today, we’ll address a section of your policy called electronics sub-limits.
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Brief Rundown of Personal Property Coverage
The amount of personal property coverage included in a standard home insurance policy typically ranges from 50% to 70% of the dwelling coverage amount.
For example:
- If your dwelling coverage (the amount to rebuild your home) is $300,000, your personal property coverage would likely be between $150,000 and $210,000.
- This percentage varies depending on the insurance provider and policy terms. Read your policy for the exact number.
Personal property coverage is the part of the home policy that covers all your stuff. It applies to items like furniture, electronics, clothing, appliances, jewelry, and other things you own that are not a part of the structure of your home.
Customize Your Personal Property Coverage
Policyholders can adjust the coverage limit based on the value of their belongings. That’s right, you are not stuck with the limit the quote automatically kicks out. You can typically adjust these sections to customize your coverage.
High-Value Electronics and Personal Property Items
For high-value items (e.g., jewelry, art, collectibles), additional coverage or endorsements may be necessary. Read more on how to properly insure collectibles.
Does my Home Insurance Cover High-Value Electronics?
Personal property coverage covers electronics like with many types of property (guns, jewelry, etc) there is typically a sub-limit.
What is a sub-limit on home insurance?
A sub-limit is a specific limitation for coverage on a specific type of personal property. For example, jewelry often needs to be scheduled on a home policy because the value exceeds the sub-limit set in the policy.
How much is a personal property coverage sub-limit?
They usually range between $1,000-$2,500 but can reach as high as $5,000. You must check your current policy to see what your current limit is.
Does the sub-limit apply to all electronics or each item?
If you have a per-item sub-limit then it applies to each item. If you have a blanket sub-limit it applies to all items in the category. Check your policy or let a trained agent do it for you.
Scenarios Where Electronics Are Covered
Electronics will be covered by your home or renters insurance policy for “covered loss” according to your insurance policy. Here are a few scenarios that would be considered a covered loss.
- Theft or burglary.
- Damage due to covered perils like fire or lightning.
- Electronics damaged by power surges or electrical issues (policy-dependent).
Electronic Losses Not Covered by Standard Home Insurance Policies
- Accidental damage (e.g., dropping your phone or spilling water on your laptop).
- Mechanical failure or wear and tear.
- Damage from floods or earthquakes (unless separate coverage is purchased).
- Overlooked exclusions: business-related electronics or high-value items.
How to Ensure You’re Covered When Electronics Sub-Limits Are Not Enough
- Endorsements/Riders: Adding extra coverage for high-value electronics. Some policies have premium packages you can upgrade to which usually increases the sub-limits on your policy, among other things.
- Scheduled Personal Property Coverage: Detailed coverage for specific high-cost items. You can submit an appraisal specifically for a high-value item and pay extra to insure that particular item.
- Home Warranty or Separate Device Insurance: This provides coverage not required to meet the “covered loss” definition on your home insurance. A claim on a home warranty or separate device insurance will also not count against your home insurance claims history.
Check your policy’s electronics sub-limits section and understand if you have a per-limit or blanket sub-limit. Then decide if you have any electronic items that are worth more or cost more to replace than your policy’s electronic sub-limits allow.
Again, this is a lot of work. It’s always easier to have an experienced agent review your policy for you.
More Home Insurance Resources
- Florida Home Insurance Glossary
- 11 Things to Know Before Buying a Home in Florida
- Why Home Insurance is so Expensive in Florida
- How Pools are Covered by Home Insurance
- Home Office and Home Insurance
- How Electronics are Covered on Home Insurance
- How Home and Renters Insurance Covers Power Surges
- Understanding Home Insurance Deductibles in Florida
- Florida Hurricane Deductibles Explained
- How Renters Insurance Covers a Hurricane
- Home Insurance Roof ACV vs Payment Schedule
- How Hurricane Shutters Can Lower Home Insurance in Florida
- Is My Dog Covered by Florida Home Insurance?
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