Property that Personal Property Insurance does not cover

Property Not Covered by Personal Property Insurance

Coverage is provided on a blanket basis under the personal property insurance agreement. This means that a single sum of insurance covers all of the insured's goods. Specific or planned coverage, in which items are listed and covered individually, contrasts with blanket coverage. Jewelry, furs, weapons, and other high-value items are frequently insured on a scheduled basis, usually for a more refined range of dangers than those that apply to property covered on a blanket basis. Certain property classes for which coverage is available on a scheduled basis or under other more specialized contracts are excluded or limited by the blanket coverage of the homeowner's forms. The following are typically excluded:

1. Articles that are separately described and specifically insured under the homeowners or any other insurance,
2. Animals, birds, or fish,
3. Motor vehicles, their accessories, equipment, and parts, and electronic apparatus designed to be operated solely by the vehicle's electrical system and tapes, discs, or other media for use with such equipment while in or on the vehicle,
4. Aircraft and their parts (except model or hobby aircraft),
5. Hovercraft and their parts,
6. Property of roomers, boarders, and other tenants,
7. not related to the insured,
8. Property in an apartment regularly rented or held for rental to others by the insured, except as provided under the landlord's furnishings additional coverage,
9. Property rented or held for rental to others away from the premises,
10. Business data, including such data stored in books of account, drawings, paper records, and data stored in a computer or related equipment,
11. Credit cards, electronic fund transfer cards, or ac- cess devices use for deposit, withdrawal, or transfer of funds (except as provided under Additional Coverages), or
12. Water or steam

The majority of the excluded classifications are self-evident, but a few may require explanation.

The exclusion of property individually described and specifically covered excludes scheduled items and property insured under other policies from the blanket coverage on personal property to avoid duplication of coverage.

Automobiles, motorcycles, motor scooters, and similar vehicles and go-carts, minibikes, golf carts, and snowmobiles are excluded from the definition of motor vehicles and their equipment. Vehicles that are not required to be licensed for use on public highways and are used primarily to service an insured's residence (such as riding lawnmowers or garden tractors) or those are meant to aid the disabled are covered. By endorsement, coverage is also available on privately owned golf carts.

Only while in or on the vehicle does the motor vehicle exclusion apply to the vehicle's equipment and accessories. This means that while theft of a tire from a vehicle is not covered, theft of the same tire while it is kept in the insured's garage is. Tape and CD players, CB radios, cellular cellphones, fax machines, and any other electronic equipment controlled exclusively by the vehicle's electrical system are all excluded from the definition of motor vehicle electronic apparatus. Electronic equipment powered by the vehicle's power system but can also be powered by other sources is not excluded. However, it is subject to a cost restriction that will be discussed later.

Hovercraft and their parts were excluded from the policy in the 2000 version to clear up a misunderstanding about whether hovercraft were motor vehicles or watercraft.

The exclusions f and g are intertwined. Roomers and boarders who are not members of the insured's family and other tenants' possessions are not covered. The insured's personal belongings in the area of the properties rented to roomers or boarders are protected. The amount of coverage supplied by the landlord's furnishings supplementary coverage is limited to the quantity of furnishings in an apartment (a living unit with cooking and bathing facilities).

Exclusion h excludes coverage for property rented or kept for rental to those who are not present. Such a property represents a commercial risk that is not covered by a homeowner's policy.

The exclusion of business data recorded in records, computers, or similar equipment means that the cost of reassembling destroyed data is not covered. Blank or unexposed recordings and media are protected at no charge. Standard software such as word processing and spreadsheet packages available in the retail sector are also covered.

Water and steam are expressly excluded to emphasize that water or steam provided through public water mains is considered a utility and is not held by the insured. For example, coverage will not apply if the insured loses water or steam due to a damaged pipe on the premises, resulting in a significant rise in the insured's utility bill.

There are dollar limits on personal property. In addition to the exclusions mentioned above, the homeowner's forms also set dollar restrictions on other property types. For an extra fee, some of these limits may be expanded. The property may be scheduled with a higher coverage limit or covered by a different policy in some situations.

The $200 limit on money applies to coin collections, scrip, stored value cards, and smart cards, as well as currency. Prepaid phone cards with a magnetic stripe or a computer chip filled with spendable credits are examples of stored value cards. Smart cards can be loaded with spendable credits, but they can have other uses. The restriction on such cards indicates their growing function as cash alternatives. For an extra fee, the $200 maximum can be expanded to $500.

Boat coverage is restricted to $1500 and covers any boat and its accessories (including a trailer). Boats worth more than this amount should be insured separately.

It's worth noting that the cost limits for jewelry and furs, cutlery, weapons, and related equipment (classes e, f, and g) only apply to stolen losses. These categories of properties can be scheduled for their total value if their value exceeds the defined boundaries.

While on-premises, coverage on business property ("property used principally for business activities") is restricted to $2500.

8 The amount of coverage for commercial property not on the premises is restricted to $500. For an additional premium, the maximum for personal business goods on-premises can be increased by endorsement up to $10,000. The off-premises limit rises to 20% of the on-premises limit when the on-premises limit rises.

Two distinct sections limit coverage for electronic apparatus (including accessories, antennas, cassettes, discs, or other media) designed to work with the power system and work with another source. While in or on a motor vehicle, the first limit on such equipment is $1500. The second provision places a $1500 restriction on the same equipment while it is out of the office but not in the car if the equipment is generally used for business. The goal is to limit coverage on such property used for personal and business purposes to $1500 while it is in a vehicle, even though the distinction between the two limitations may be unclear. While it is away from the insured premises, whether in a vehicle or not, electronic gear utilized for business is similarly limited to $1500. This $1500 limit takes precedence over the $500 limit on off-premises commercial property.

The property should be scheduled for its full value when specific insurance is arranged on any classes to which dollar limits apply. Once an object has been explicitly insured, the coverage provided under the homeowner's policy's blanket personal property coverage no longer applies. For example, a person with a $2500 stamp collection cannot rely on homeowner's insurance to cover $1000 of the collection when it is booked; the collection must be arranged for the full $2500, not just $1500.