minimize personal property coverage on homeowners insurance

Question

This month, my homeowners insurance is due for renewal. I noticed that the personal property coverage is beyond $100k, which exceeds my needs by at least two orders of magnitude. Honestly, my personal property could be replaced for under $5k, a few trips to thrift shops and some time browsing Craigslist.

My current company (Progressive) isn't willing to lower their personal property coverage, and explained that it's standard policy to provide 50% of the house's replacement cost. I called at least three other companies (Farmers, State Farm, Geico) to ask for a lowered percentage of the house value, but they answered the same way.

Does anyone know a company that will lower their personal property coverage on a homeowners policy? I'm looking for a way to avoid insuring stuff that I don't even own.

Thanks in advance!

Answer 1

50% of the replacement cost for personal property is outrageous. You should shop around, from my experience many insurers have minimum coverage requirements for personal property, but it is around a specific amount, somewhere in the $10K-$20K range.

Answer 2

The state sets the standards for what must be covered for the different types of insurance. It covers the types of perils and how the different limits are to be calculated. In the few states I know about the insurance the personal property defaults to 50% of the replacement value of the single family house. If it is renters insurance, or if you live in a multi-unit dwelling they will have different guidelines they follow.

Wanting to cover non-standard amounts requires additional work on your part and on the part insurance company. They will want you to document the items to be covered. But expect them to stick to the list. If you are sleeping on a air mattress, and you didn't tell them about the new bed they will only cover the replacement cost of the air mattress.

Look at the detailed bill for your insurance policy, see how much you are paying for the personal property coverage.. You may get a bigger savings by adjusting the deductible.