Home Insurance Topics: Do I Need Extra Coverage for High Value Items?
Most policies limit payments for certain items and categories
It is common practice for policies that cover personal property to have special limits on the amount that will be covered for specific items or items within specific categories. If you require the full replacement or market value to be insured, you will have to arrange for additional insurance and pay the appropriate premiums.The rationale behind this practice is to ensure that everyone is provided with a base level of insurance at reasonable rates and those with high value items cover their own extra costs. Examples include:
- Jewelry, watches, gems and furs
- Coin collections
- Silver and gold ware
- Money or bullion
- Business property
A thorough home inventory will tell you where you stand
One of the best ways to know if your belongings are covered is to do a complete inventory of your contents and review it with your broker. A home inventory will help you itemize your property if you need to make a claim, and it is a good way to test if your overall policy limits are adequate. You should include a list of contents, a brief description or photograph and an estimate of the replacement value of each item. Consider making a video of your rooms, cupboards and shelves and store it off-site.You can also take advantage of inventory tools such as the IBAC Home Inventory Form available online, at http://www.ibac.ca/Pages/English/Consumers/Downloads.aspx.
With a professional appraisal, you can arrange the extra insurance you need
If you have high value items that exceed the limits in your policy and you want to have them separately insured, you will probably need to have the items valued by a professional appraiser so that you know what limits of coverage to purchase. Depending on the type of property and how much information you can provide, an estimate of value can be determined. There is a fee for this service.
Knowing the value of the contents of your home is vital to being properly insured. Your broker can help you find the tools and resources you need.