Do I need additional insurance for my valuables?

Would you be covered if a diamond fell out of your engagement ring, you lost the watch your grandfather gave you, or your cherished stamp collection was stolen?

Purchasing home insurance is an important step towards protecting the things you own, but your most prized possessions may require additional coverage.

Certain personal items are only insured up to a specific dollar amount, which means you may not have sufficient coverage for expensive items, such as wedding jewellery.

In this article, we’ll walk you through the steps to make sure that all your valuables stay safe.

Check your coverage limit

Most home insurance policies include coverage to replace your Personal Property.

Many valuable items, such as furniture, appliances and computers, will be covered by your existing policy, but these items will also be subject to your personal property coverage limit.

To ensure all your belongings are properly covered, make a list of everything you own and how much each item costs. This list will help you determine if your personal property coverage limit actually reflects the items in your home.

Some valuable items, like jewellery, will only be covered up to a specific amount by your home insurance.

Identify valuable items with special limits

Certain valuable items often have set coverage limits, which are commonly referred to as Special Limits.

If you own any of the following items, it may be time to check your insurance policy to ensure you have the right coverage:

• Jewellery
• Watches
• Luxury handbags and purses
• Furs
• Stamp collections
• Coin collections
• Sports card collections
• Bicycles

If you own a ring worth $15,000, for example, and your policy has a special limit that only covers jewellery against theft and mysterious disappearance up to $6,000, you’ll want to consider updating your insurance so that this valuable is sufficiently protected.

Contact your broker

Once you’ve taken stock of your possessions, it’s time to take action. Call your broker if:

• You own items whose value exceeds your Personal Property coverage limits.
• You own items whose value exceeds the Special Limits on your policy.
• You have recently purchased a valuable item, received a generous gift or inherited something of value.

You may also want to contact your broker if you have questions about your policy.

Coverage Limits and Special Limits vary depending on the valuable item that’s insured, whether you rent or own, and whether you have comprehensive, basic or broad coverage.

Keep a record

It’s a good idea to avoid showing off your valuables on social media, but that doesn’t mean you can’t use your valuables once they are properly insured.

If you purchase insurance for your valuables, here’s what you should do to make sure any future claims go smoothly.

• Keep your receipts so that you can prove ownership in the event of a claim.
• Take photographs of your valuables.
• If an appraisal was completed, ensure that your broker is aware and retain the original copy of the appraisal.
• Keep your receipts, photographs, appraisal information, and your valuables somewhere safe.

When your valuables are covered, you’ll have the peace of mind to truly enjoy them.