Should you get a personal property protection plan? A guide to replacement costs

No matter what your situation looks like at home, there are a few heroes you can consistently count on... and we’re not talking about the people that might be living with you. (We’re sure they’re amazing people, but hear us out.)  

The heroes we're referring to are your appliances and furniture that keep your day-to-day routines running smoothly. Maybe it’s your oven for meal-prep Sundays or your laundry for wash day Mondays. And maybe it’s the patio furniture that you kick back on at 5pm on Fridays. You work hard for your stuff — and your stuff works hard for you.  

...Until you notice your dishwasher leaking mid-cycle, on the same day your mortgage, car payment, and student loans are due.  

Before you submit to a life of wrinkled fingertips and endless, “You wash, I’ll dry” conversations, we have a life hack (that also doubles as a smart financial move) for you — personal property protection.  

What is personal property protection? 

Personal property protection can help cover your stuff — like your oven, fridge, dishwasher, furniture, exercise equipment, and more. It can cover the gaps in your homeowners and renters insurance policies (or even your warranties) if an accident were to strike.  

Specifically, personal property protection can cover these types of damages (and more, depending on the plan you choose): 

• Accidental damage (rips) 

• Mechanical failure 

• Manufacturer defect 

• Water damage (spills and submersion) 

• Power surge by lightning 

Though you can cover just about anything in your home, personal property protection does not extend to your clothes, jewelry, shoes, and accessories like handbags. Luckily, your homeowners or renters insurance policies might be able to cover the estimated cost of these items in the event of theft, vandalism, or fire, for example. (Check your plan to be sure, though.) 

Personal property protection plans typically do not extend to instances of intentional or willful damage or misuse, products that have been modified, and products that have been lost or stolen. Exclusions vary by policy, so take the time to shop around and find a personal property protection policy that best fits you and the items you’re covering. 

How does personal property protection work?

Let’s take a real-life example. This personal property protection plan (available in partnership with Cover Your Assets (CYA) and Kasasa Care) makes it so easy to sign up for coverage and, in the event of an accident, file a claim in four easy steps:  

1. File a claim easily through the CYA app, online via your CYA account, or by calling a CYA agent at 800-202-7707. 
2. CYA will review your claim — most are approved in 1-2 business days. 
3. If you need a repair, CYA only lets authorized technicians service customers’ assets. CYA coverage provides you with access to tens of thousands of repair centers in their network that can fix your asset swiftly and professionally. Your item is backed by a 5-day repair or replacement guarantee! 
4. There are times when not even CYA’s experts can fix your asset. Based on your asset and claim filed, CYA will either offer cash for its value or replace it with a unit of like kind and quality. 

What is replacement cost and actual cash value?

A replacement cost policy will pay the dollar amount it will take to buy a new item at the time of a claim and doesn’t take depreciation into account. An actual cash value policy takes depreciation into account and will provide a reimbursement based on the current value of the item. 

Let’s say you purchased a dishwasher five years ago for $700 and it’s malfunctioning. Time to make a claim with your replacement cost policy!  

The current value of your dishwasher is around $350, but your replacement cost policy will either replace your dishwasher with one of its like kind and quality or offer you cash for its initial value of $700. 

Now let’s say you have an actual cash value policy... and a malfunctioning dishwasher. The current value of your dishwasher is around $350, but the latest model on the market costs $900. Your actual cash value policy will reimburse you $350, so you can take that money and give yourself an upgrade if you choose. Think of it this way: instead of dealing with the hassle of trying to sell your dishwasher to someone that is much more handy, your actual cash value policy takes care of that work for you. 

When you’re looking into personal property protection plans, be sure to check the fine print before you make your decision. No plan is better than the other — it all depends on what your financial needs are, how much you’re willing to pay for your monthly premium (FYI, actual cash value policies are typically less expensive, but offer lower payouts), and your specific reason for covering the item. 

A personal property protection plan with CYA and Kasasa Care, for example, works like this: if your item is beyond repair, you’ll either be offered cash for its value or a replacement with a unit of like kind and quality. (Almost like we waved a magic wand and the accident... never happened.)  

Should you replace or cover your (insert item here)?: A cost-comparison guide

With all this talk about repairs, replacements, and overall costs, it’s important to recognize one of the biggest reasons we recommend getting personal property protection in the first place. And that is this: if your (insert item here) cracked, malfunctioned, or went kaput today, do you have enough cash to replace it tomorrow? This is an especially important question for essentials such as your refrigerator, freezer, and air conditioner (yep, that can be covered too).  

If you don’t, you’re not alone. In fact, 63% of Americans don’t have enough savings to cover a $500 emergency. Even if you do, would you have to drain your emergency fund just to replace one (costly) appliance? If that’s the case, we’d recommend looking into personal property protection — and let these numbers speak for themselves!  

If you’re good with numbers, you might notice that you get a little savings when you opt for an annual plan versus a no-contract, month-to-month plan. (Something to keep in mind if you’re considering coverage!)  

Plus, you can even bundle your items for even more savings — in some cases, up to 30%!* Here are some of the most popular bundles: 
 

• Laundry: Cover your washer and dryer for $12.98 per month 

• Major appliances: Cover 5 appliances for $27.95 per month 

• Whole home: Cover 21 items for $79.99 per month

   

You can even tack on your smartphone, laptop, camera, drone, or other favorite electronic, too. That’s right — we also offer electronics protection. The customization options are endless!  

Is a personal property protection plan right for you?  

The answer to this question comes down to your personal finances and financial goals. If you have enough cash to replace an appliance — that’s incredible! But if it sets you back from reaching your goals (like a down payment on a home or car, or taking a vacation with your family), a few bucks a month for guaranteed repair or replacement coverage might be a smart move.  

The best part? There’s no commitment — in other words, you can cancel anytime. (Though we’re pretty sure you’ll want to keep the peace of mind around for a while.)  

Start comparing (and customizing!) personal property protection plans today — and you’ll never have to cringe when your dryer starts making that funny noise again. 

*Savings vary by the product(s) you’re covering and the amount of coverage you require.