Did you know that it is possible to increase the coverage in your home insurance policy to protect your passion? Whether you have a collection of extremely rare figurines, a cellar full with wine bottles, have a passion for road bikes, or even love high-quality jewellery, you can make sure that your guilty pleasure is covered! Our broker explains how you can adequately insure your passion below.
Step 1: Know the Limits in Your Underlying Policy
Very often, people stop at this step and believe that a high limit for property will cover all of their assets—even the most valuable ones. That being said, special attention must be paid to the limits listed in your underlying insurance policy. Here are the steps to find them:
- Look at the wording of your insurance policy.
- In the property damage coverage section, find Coverage C—Personal Property.
- Look at the section on specific limits.
This comprehensive list of property is crucial, because it determines the property that has limits in the policy for all types of claims or only in the event of theft and/or loss. The following are among the items generally found on this list: precious metals, bank notes, boats, software, animals, professional equipment, wine and spirits, works of art, jewellery, and bicycles. If you have belongings that are on this list, you need to go to the next step, which for you, collectors, is very important.
Step 2: Insure Your Passion
After checking the limits, you decide to cover a high-value, treasured belonging. There are three questions to ask yourself at this step:
- Is the insurer providing my underlying policy able to provide me with specific insurance that meets my particular needs?
- If not, must I go to an insurer specialized in high-end home insurance?
If you answered “no” to both of these questions, here is a third to ask yourself: can an insurer provide me with insurance specifically for my passion? The answer is most certainly “yes”, and your Lareau broker would be delighted to find one for you!
In fact, some insurers provide insurance policies to insure specific types of property and even sometimes have a deductible that is lower than that in your main underlying policy.
Step 3: Analyze the Possible Scenarios
You now have multiple scenarios to compare. Naturally, it is at this step that your broker becomes your best ally because your broker will be able to make all of the available options understandable and determine, with you, which solution is best for you. Here are the possible scenarios:
Scenario 1: Underlying policy only.
Scenario 2: Underlying policy + an amendment to the policy that covers the specific property for the total amount needed.
Scenario 3: Underlying policy +a 2nd policy from another insurer that only covers the total amount of the specific property you wish to cover.
Scenario 4: High-end policy (with higher underlying limits). Conditions must be complied with; call your broker to find out if this market is for you.
To conclude, note that these additional steps are very important if you wish to adequately cover your most treasured belongings. In all cases, your Lareau broker is here to help make your life easier and to carry out this analysis for you. Never assume that your high-value belongings are automatically covered because you asked for a large amount for personal property in your policy, since you may be in for an unpleasant surprise when it comes time to make a claim.
Feel free to pick up the phone and call one of our experienced brokers to discuss your passion. It would be our pleasure to quickly get back to you with an estimate that will meet your needs as a collector!