Most personal property including gifts, are covered under your insurance policy, but the coverage amount can differ depending on whether it’s a homeowner, condo or tenant policy. Under a homeowners policy your personal property is covered up to 80% or 90% of your dwelling value depending on the insuring company, whereas with a condo or tenant policy the limit of personal property value is determined by you.
If you’ve been gifted items like new electronics, furniture, appliances etc. these are covered under your personal property insurance, but items such as bicycles, jewellery, and fine art have a limit to their coverage. The coverage limit for these type of items is also known as ‘Special Limit’, which is the maximum an Insurance company will pay for an insured loss. For example, Jewellery is subject to a Special Limit coverage of around $6000 dollars and bicycles a limit of $1000, therefore if you suffer a loss you will not be able to recover the full amount through your insurance coverage.
Listed below are some examples of items that are considered to have special limitations.
- Computer Software
- Property of a student away for school (if item gifted be subject to ‘Special Limit’ coverage)
Can I get extra coverage for Special Limit Items?
Yes, Items that are subject to special limits can be covered for the full value by scheduling them (adding them separately as a rider) to your property insurance policy for an additional premium. Scheduled items may have a reduced deductible or in some cases no deductible, and can be scheduled anytime throughout your policy term. Claims would be settled based on the amount of insurance determined when scheduling.
Example of how a Scheduled Item would be covered:
If you received a diamond ring valued at $7,000, and your home insurance policy has a Special Limit of $6000 for jewellery coverage, you would be out $1000 if you suffered a loss and if you only claimed the ring. However, if you schedule your ring separately, the insurance company would replace the full $7000 for the ring and you would still have access to the $6000 of jewelry coverage under your policy for any additional jewelry that may have suffered a loss also.
Not sure what your limits are?
Contact our Insurance Service Centre and we would be happy to review your coverage’s with you and advise you if you require any additional coverage’s or scheduling of any Special Limit item. If you are currently uninsured request your free Home Insurance quote today.