When personal property is considered part of the dwelling
Coverage Q&A: Should items that will ultimately become part of a dwelling, such as doorknobs and trim, be considered personal property after a loss?
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Editor’s Note: At times, building contents that ultimately become part of the dwelling can be considered as personal property for a short period. This week’s question deals with such an occasion.
Question: Our client, who is a homeowner, recently experienced a fire. She had some items on her property that the contents adjuster doesn’t want to add to the contents list. The adjuster explained that property relating to the structure but not in use, such as new doorknobs in packaging, unattached deadbolts, cans of paint, and new trim in packaging, cannot be added to the contents list. Your thoughts?
— Michigan Subscriber
Analysis: Personal property, in general, is the contents of the dwelling. Typical examples are furniture, clothing, kitchen utensils, electronics, and similar property. Items that are part of the dwelling are just that: walls, ceilings, floors, wiring, and plumbing.
The insured was preparing to make some improvements to the dwelling and had the supplies on hand. Before the insured could complete the updates, the insured had a fire, and the paint, doorknobs, etc. were ruined. The adjuster does not consider these items as personal property but part of the dwelling, even though they had been unopened and unused. Does that make a difference? Does the determination of ‘property’ depend on the item’s ultimate use?
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