CandleFocus

Personal Property

Candlefocus Editor
Personal property is one of the most common forms of ownership. It is defined as any type of movable goods, from clothing and electronics to furniture and vehicles, which are owned by an individual, and fall under the jurisdiction of their state law. Personal property is the opposite of real or immovable property and can often be used to secure a loan, for example car finance, or be included in insurance policies, such as home insurance coverage.

When it comes to loans, personal property is often the only asset that a lender will take into consideration. This is because possession of the collateral – in most cases the vehicle itself – is proof that there is a repayment plan in place. For this reason, lenders will often require the debtor to possess a form of insurance for the value of their personal property.

In terms of insurance, personal property coverage is an optional form of insurance coverage that provides additional protection for an individual’s belongings in the event of an unexpected loss. Such items are often covered up to 70 percent of the dwelling's insured value, depending on the insurer. Typically, personal property insurance policies will provide coverage for the replacement costs of the property, taking into account depreciation.

Overall, personal property is anything owned by an individual that can be moved, whether it be tangible or intangible. It includes items such as furniture, electronics, clothes and artwork, as well as stocks and bonds and vehicles. Personal property can not only be used as collateral for loan agreements but also to provide coverage through insurance policies. Ultimately, personal property ownership is a term that refers to the individual ownership of a variety of items and securities.

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