What is a personal property coverage limit?

Your personal property coverage limit is the maximum amount your insurance will pay to replace your belongings if they are stolen, damaged, or destroyed by a covered event. This limit is typically set at 50 to 70 percent of your dwelling coverage. For example, if your home is insured for $400,000, your personal property limit might be $200,000 to $280,000. To determine if this is adequate, create a home inventory listing all your possessions and their estimated replacement value. You can increase this limit if your belongings exceed the standard amount.