Are Your Valuables Fully Covered?
Your home, condo or tenant insurance helps protect your personal belongings, but some possessions may be worth more than the amount your policy would pay following a covered loss.
Consider an engagement ring that slips off while travelling, a high-end bicycle stolen from a garage or a collection damaged by water. Would your existing insurance provide enough coverage to repair or replace it?
Standard Coverage May Have Special Limits
Insurance policies generally include coverage for personal property such as furniture, clothing, appliances and electronics. However, certain categories of belongings may be subject to a special limit, meaning the policy will only pay up to a specified amount, even when the total value of the items is much higher.
Items that commonly have special limits may include:
- Jewellery and watches
- Fine art, antiques and collectibles
- Coins, stamps, trading cards and rare books
- Designer handbags and valuable vintage clothing
- High-end bicycles and sporting equipment
- Cameras, computers and specialized electronics
- Musical instruments
- Furs, silverware and other valuable possessions
Special limits and covered causes of loss vary by insurer and policy. Some belongings may be covered for theft or fire but not for accidental damage or an unexplained disappearance.
Take Stock of What You Own
A home inventory can help you determine whether your current coverage reflects the value of your belongings. Walk through each room and record valuable items, including their approximate purchase dates, prices, serial numbers and identifying features.
Photographs, videos, receipts, appraisals and certificates of authenticity can also help document ownership and value. Store digital copies somewhere secure and accessible outside your home.
Update your inventory following major purchases and review it at least once a year—especially before renewing your insurance.
Consider Appraisals and Additional Coverage
The value of jewellery, art, collectibles and other specialized belongings can change over time. A current professional appraisal can help establish an item’s replacement value and determine whether additional protection is needed.
Depending on the item and policy, your insurance professional may recommend adding an endorsement or “scheduling” the possession individually. This can provide a higher coverage limit and, in some cases, protection against a broader range of losses.
Review Your Protection Before Something Happens
Do not wait until a valuable possession is lost, stolen or damaged to discover a gap in your coverage. Review the personal property limits, special limits, exclusions and deductibles in your policy, and consider the total replacement cost of what you own.