Insurance Coverage: Personal Property vs Dwelling: specifically related to appliances

[Brian Binkley]

Well, I just wrote the perfect post and the site refreshed on me, losing what I originally wrote. That was a bummer - let's try this again!

I am nearing the closing of my first rental property at the end of the month and trying to nail down my insurance policy. I am confused and a bit surprised that I cannot get anyone to confirm for me in writing, what "appliances" are considered to be Personal Property vs Dwelling.

Generally speaking, I've been told that Personal Property would include the fridge, oven, dishwasher, washer/dryer and microwave. Things like the furnace, a/c (or similar equipment), air exchanger and hot water heater are considered part of the dwelling. The item of most controversy is the water softener where some say its personal property, others say its part of the dwelling.

What is frustrating to me is the logic (or lack thereof) I'm hearing and how easy it is to poke holes at it. One person said if you take a house and turn it upside down, anything that falls out would be personal property as its not attached or becomes unplugged. So with that logic, a dishwasher, gas stove, washing machine and even a lot of fridges today with water lines would remain "attached". The microwave in the home we're purchasing is physically mounted to the cabinetry in the kitchen - its not coming off the wall with a tug. Then I'm told that you could take the dishwasher with you if you move and mixed commentary of whether or not you'd take a water softener with you. Someone that I spoke with said if you have to replace it after normal wear and tear, its personal property and not part of the dwelling? Well, name any piece of equipment that doesn't get replaced after 15-20 years - they all do, including the roof which is widely considered part of the dwelling. Ceiling fans - they are attached to the house, but if I really wanted to, I could take it down and bring with me to the next house. Where does the line get drawn? I could go on and on with some of the "beliefs" I heard over the past week now and with every single one, so easy to poke holes as nothing seems to be in writing.

I'm not looking to make an argument that 'this' or 'that' should be considered personal property or dwelling - I truly don't care. All that I am hoping to know, with something in writing, is if a catastrophic event happens, which buckets each piece of equipment would fall under so its not just up to the willy nilly of the inspector or underwriter and which side of the bed they got up on that day. In my world of contractual documents, everything is defined OR there is language for generally accepted, documented, industry standards - neither of which I'm getting.

I would love to hear any advice/tips you may have on this subject - and even better, some actual resources that I could be pointed to. I'm hoping to avoid opinions and stick with facts, if there are any.

[G. Brian Davis]

This confusion is common because the line between “dwelling” and “personal property” isn’t set by a universal rule, it’s defined by each insurance carrier’s policy form. The only way to get clarity is to ask the insurer to show you the exact language from their policy, because that’s the document that governs a claim. Most carriers follow the logic that items built-in or permanently plumbed/wired (dishwasher, mounted microwave, water heater, HVAC, water softener) fall under dwelling, while plug-in or easily removable appliances fall under personal property. But again, it’s policy-specific, not industry law.

Instead of arguing philosophy, ask the agent for the specimen policy the full contract before you bind coverage. It will list what’s covered under Coverage A (dwelling) vs Coverage C (personal property), and if something isn’t clear, request an endorsement that explicitly states how it will be treated. Getting it in the policy itself is the only reliable “in writing” protection you’ll get, and it’s absolutely normal to ask for it before closing.