Did you know that some of the items in your home may not be covered by your insurance policy?
What do you mean? I have great homeowners insurance!
That may be true, but traditional homeowner insurance may not cover more valuable or rare items. Most policies have restrictions on how much and what they cover. For example, your policy might cover a bicycle up to $500. If you have a higher-end bike for hitting the trails and your bike is stolen or damaged in a flood or fire, you won’t recuperate the total value of your bike, meaning you would have to dip into your savings to purchase the same model bike you had before. Sometimes traditional insurance will cover the value of one thing—a collectible doll for example—but it may not cover multiples of the same thing, like an action figure collection. The focus of most homeowner’s insurance is on protecting the basics and day-to-day items, not necessarily your precious items.
What kind of things may not be covered in my homeowner’s insurance policy?
- Fine Art (including rugs)
- Collectibles and Collections (stamps, coins, comic books, action figures, etc.)
- Computers and equipment
- Musical Instruments
- Medical devices
- Sports Equipment
I own some of these things, what do I do?
Step 1: Create a list and get them appraised.
The first thing to do is come up with a list of items that have a high-value. You’ll want to take pictures of the items so that you can prove both the condition of the item as well as ownership. If you have receipts about what it cost for your items, keep them in a folder to bring to the insurance company. If your item’s value can change, for example, antiques, collectibles, jewellery, and art, you’ll want to contact an expert to get them appraised. Professional appraisers can provide you with the documentation you’ll need to give your insurance broker to prove the value of your possessions.
Step 2: Talk to your insurance broker
You’ll want to contact your insurance broker as soon as possible. They will be able to tell you what coverage you will need to protect your valuables. Usually, you can easily add an extension to your insurance policy to protect your high-valued items. There are also specialty insurance policies out there, like jewellery insurance coverage, that can also help you protect your investment. Your insurance broker will be able to guide you through the process, tell you what it will cost, and can point out what further documentation you will need to protect your valuables.
Ultimately, nothing can protect you from the sentimental value you place on things like engagement rings, family heirlooms, or collections you’ve been building since childhood. But insurance can give you peace of mind that your investment will not be completely lost if something were to happen down the road. Peace of mind and protection, ultimately, are priceless.
Contact Us today to talk about your insurance coverage needs.