Which coverage essentially compensates you for damage to your personal belongings like clothing and furniture?

The coverage that compensates you for damage to your personal belongings, such as clothing and furniture, is indeed Coverage C. This type of coverage, often referred to as "personal property coverage," is designed to protect the contents of your home. It includes various personal items and can cover losses due to specific perils, such as theft, fire, and vandalism.

Understanding this coverage is crucial because personal belongings can hold significant value in an individual's life, and having adequate insurance ensures that you can recover from unexpected losses. It's common for homeowners or renters to focus on the structure of their home (addressed by other types of coverage) while overlooking the importance of protecting their personal property.