Unscheduled Personal Property What It Is How It Works
Unscheduled Personal Property: What It Is, How It Works
What Is Unscheduled Personal Property?
Unscheduled personal property is a term used in the property insurance sector that refers to personal possessions insured under a policy without being individually listed in a separate section, or "schedule," of the insurance contract.
Typically, unscheduled personal property consists of low-value items like clothing, jewelry, and electronics. Insurance contracts usually cover a certain total amount of these items without requiring individual identification.
Key Takeaways
– Unscheduled personal property consists of assets insured in a property insurance contract.
– They are generally low-value items and do not require individual appraisals.
– More valuable assets must be separately appraised and described in schedules added to the insurance contract.
Understanding Unscheduled Personal Property
Unscheduled personal property insurance covers items not valued highly enough to require separate insurance. Under homeowners insurance or renter’s insurance, for example, clothes, jewelry, common sports equipment, kitchen appliances, furniture, and small electronics typically qualify as unscheduled personal property. In the event of a fire or other covered catastrophic loss, the policyholder simply calculates the value of these unscheduled items and submits them for compensation. This avoids the need for each item to be individually evaluated.
Insurance companies set coverage limits for specific types of unscheduled property. For instance, a policy may cover up to $5,000 worth of unscheduled property but have limits of $750 for clothing, $1,000 for jewelry, and $2,000 for lost or damaged cash. Unscheduled personal property may also be subject to deductibles, either for specific types of property or for the combined amount.
Property insurance often includes a mix of scheduled and unscheduled property. A policy might have $5,000 coverage for unscheduled property, along with additional coverage for more valuable items like fine art or precious metals, listed in one or more schedules. These special items require separate appraisals to determine their value. A floater insurance contract can be added as a rider to the property insurance, specifying the value of each item and whether they can be replaced with their actual cash value, an agreed amount value, or if equivalent assets need to be found.
The actual cash value of an item considers depreciation, making it generally lower than an agreed amount value but also less expensive to insure.
Example of Unscheduled Personal Property
