Whether it’s a ring from a loved one or a cherished personal collection, certain items have a lot of value — both sentimental and monetary. If something were to happen, are these items covered under your home insurance policy? Here is everything you need to know about insuring valuables.
Although your belongings are generally covered under your home insurance policy, it’s important to note that some categories of items are subject to limitations. Some of these limitations only apply in the event of theft, while other items are always limited, regardless of the type of claim. Here is a brief guide to help you make sense of these distinctions.
Items with limited coverage in the event of theft
This category includes valuables such as:
- Fur or fur-trimmed garments
- Gold or silver items
- Collector’s items
- Works of art
- Regular and electric bicycles
Items with limited coverage for all perils
This category includes items that your insurer will not cover beyond the policy limit, even in the event of a fire.
- Anything with monetary value, such as bullion, bank notes and gift certificates
- Boats and any other watercraft, including accessories. For these items, we recommend that you take out a boat insurance policy, which is better suited to protecting your property.
- Wine and spirits
- Goods and samples for business purposes
- Outdoor maintenance equipment such as lawnmowers or snowblowers and their accessories
What are the coverage limits?
Coverage limits vary from one insurer and policy to another. For example, if you choose to take out a more limited policy that only covers a list of named perils, the limit for these items will be less generous. On the other hand, if you have greater insurance needs and the chosen insurer offers a high-value product, the limits will be less restrictive — or even non-existent — for certain items.
What should I do if my policy limit doesn’t meet my needs?
Insurers also offer the opportunity to insure specific items. To do so, you will need a receipt or an appraisal to prove the item’s value. The insurer will offer you appropriate coverage in exchange for an additional premium. While you’ll pay more for your insurance, if you need to make a claim, your property will be insured for its fair value.
Another significant advantage of specific insurance coverage is not having to pay a deductible. In the event of a claim, you will be reimbursed for the full value of the item.
To find out which amounts apply to you or to modify your insurance coverage to better meet your needs, contact your broker here at Lareau.