Personal Property Limits Explained

Most homeowners assume “personal property” means “all my stuff is covered up to the big number on the page.” It’s not. That big number is just the ceiling—and inside it, insurers hide smaller caps and sub-limits that quietly choke your payout on high-value items. This guide breaks down how those limits actually work so you don’t find out the hard way after a burglary or fire.

If you’re fuzzy on the basic structure of this coverage, skim personal property coverage basics first. This article assumes you already know what counts as “your stuff” under the policy.

1. The Main Personal Property Limit

This is the headline number—usually shown as “Coverage C” on your declarations page.

• Often set as a percentage of dwelling coverage (commonly 50–70%)
• Acts as the total cap for all your belongings in a single claim
• Applies to furniture, electronics, clothing, appliances, and everyday items

Example: If your dwelling limit is $300,000 and personal property is set at 60%, your main personal property limit is $180,000. That sounds generous until the sub-limits start cutting pieces off.

2. Sub-Limits: The Fine Print That Shrinks Your Payout

Sub-limits are smaller caps within the main limit. They apply to specific categories insurers see as high-risk or easy to abuse.

• Jewelry and watches
• Firearms
• Cash, coins, and precious metals
• Collectibles and memorabilia
• Business property stored at home

A common setup: $100,000 main personal property limit, but only $1,500 for jewelry theft. Lose a $6,000 ring? You’re eating most of that loss unless it’s separately covered. That’s why scheduling high-value items is a separate, non-optional conversation if you own anything expensive.

3. Per-Item Limits vs Category Limits

Insurers use a mix of per-item caps and total category caps:

• Per-item limit: max payout for a single item
• Category limit: max payout for everything in that category per loss

Example: Firearms might have a $2,500 total limit for all guns combined. Jewelry might have a $1,500 per-item limit but a $5,000 total theft limit. If you own multiple high-value pieces, the policy will not “scale” with you automatically—you have to fix that.

4. Special Limits for Theft vs Other Causes

Some sub-limits only apply to theft claims and are higher or unlimited for fire or other covered perils.

• Jewelry: tight limits for theft, looser for fire
• Cash: strict caps in any scenario
• Collectibles: often low limits, regardless of cause

That’s why burglary claims sting so much—sub-limits hit hardest there. If you want to be prepared for that scenario specifically, read what to do after a burglary once you’re done here.

5. On-Premises vs Off-Premises Limits

Your stuff isn’t always at home. Insurers know that and restrict coverage outside your four walls.

• “Off-premises” property (in your car, at a hotel, in storage) often capped at a fraction of your main limit
• Some policies use 10% of your personal property limit as the off-premises cap
• Different rules may apply for theft from vehicles or public places

If you travel with expensive gear—cameras, laptops, tools—you need to know this number before something disappears.

6. Business Property Limits at Home

Anything used for business is treated differently. That includes side hustles, home offices, and tools for part-time work.

• Typical limits: $2,500 inside the home, $500 in a vehicle
• These are hard caps unless you add extra coverage
• Receipts and proof of use matter during a claim

If you earn any money with property stored at home, read home business insurance basics before assuming it’s covered.

7. How ACV vs RCV Changes the Real Limit

Your limit may look high, but if your policy uses Actual Cash Value (ACV) for personal property, depreciation quietly lowers the real protection.

• Old furniture, electronics, and appliances get heavily discounted
• RCV pays enough to buy new items of similar kind and quality
• ACV may cut payouts in half or worse for older belongings

If you don’t know which one you have, fix that now using ACV vs RCV.

8. How to Check and Fix Your Personal Property Limits

• Read your declarations page and find the main personal property limit
• Dig into the policy booklet for special sub-limits and theft limits
• List any valuables that would exceed those caps
• Decide what needs to be scheduled or insured separately

The goal is simple: make sure the numbers on your policy remotely match the value of what you actually own. The insurer won’t correct this for you—you have to do it on purpose.