Did you know that your home insurance policy has has limits that restrict the amount of money you can recover when certain items are stolen or lost? This means that for items such as Jewelry, Stamps and Bicycles the amount of money recoverable in a claim is capped. There are two ways to increase your coverage where needed, read on to see which works best for you.
So what does this mean and why is it something you need to consider when reviewing your home insurance policy?
Take Jewelry for instance. Chances are pretty good that you have a home insurance policy where the special limit on Jewelry is $5k. So let's say you have a ring worth $10k that has been stolen. In a claim you would be subject to a deductible, let's say $1k, so the maximum that you can get to replace your ring would be $4k.
If you do have items whose value exceeds your special limits, however, you have options that will still allow you to protect your property.
- You can schedule each individual item and pay premium's individually to cover these.
- Some companies allow you to pay to increase these limits. We can offer this for example through products like Intact Insurance's My Extras.
Scheduling sometimes makes the most sense when insuring items with very high values. Each individual item must be scheduled, so if you had a high value ring and a high value necklace you would like to schedule, they would have to be done separately. Scheduling an item often requires that you provide regular updated appraisals on the items you're protecting.
Using a product that allows you to "buy up" your special limits allows you to group multiple items into a single and often lower premium. For example, if you were to increase your special limits to $50,000 you would have that coverage for your rings, your bracelets, your watches and anything else that was included in the package for one low price. Increasing coverage in this way does not require you to provide appraisals either.
Insurance can be complicated at times, but that's why you have an insurance broker. At Armour Insurance our brokers know to ask the right questions to ensure that you're getting coverage that actually protects you and will get you back to normal in the event of a claim.
Call Armour Insurance today to find out if you're affected by special limits on your home insurance policy. Our insurance experts can assess your coverage and make recommendations on how to better protect your belongings.