Your home is likely one of your biggest investments, and everything inside it has value, too. From everyday essentials to treasured family heirlooms, you count on your home insurance to protect what matters most.
But here's something many homeowners don't realize: a standard home insurance policy doesn't necessarily cover everything you own, or every type of damage.
Understanding what's covered, what's excluded and where coverage limits apply can help you avoid an unpleasant surprise when it's time to make a claim.
What's the Difference Between Exclusions and Coverage Limits?
Home insurance policies typically include both exclusions and special coverage limits.
Exclusions are situations, types of damage or property that your policy does not cover. For example, damage caused by normal wear and tear or poor maintenance is generally excluded.
Coverage limits determine the maximum amount your insurer will pay for certain losses or belongings. Even with generous overall contents coverage, specific items may have much lower limits.
Details depend on your insurer, your policy, and any additional coverage you've purchased.
Which Belongings Might Need Extra Coverage?
Some of your most valuable possessions may have limited protection under a standard home insurance policy.
Items worth reviewing include:
- Jewellery and watches: Engagement rings, luxury watches and other valuable pieces may exceed your policy's special limits.
- Collectables and antiques: Coin collections, sports memorabilia, rare collectables, antiques and fine art may require additional protection.
- China, silverware and glassware: Valuable collections and delicate items may have special limits or restrictions, particularly for accidental breakage.
- Sporting equipment: High-end bicycles, e-bikes, kayaks, golf equipment and other recreational belongings may have coverage restrictions.
- Wine collections: Valuable wine and spirits may require specialized coverage, particularly for breakage or changes in storage conditions.
- Electronics and digital property: Computers and electronic equipment may be covered, but restoring lost data or software may have limited or no coverage.
- Outdoor features: Landscaping, fences, decks, pools and hot tubs may have separate limits or exclusions depending on the cause of damage.
Not every item listed above is automatically excluded. Some may already be covered under your policy, while others may require higher limits or additional insurance.
What About Flooding and Other Types of Damage?
It's not just your belongings that deserve a closer look. The cause of damage matters, too.
For example, a standard home insurance policy may cover certain types of sudden and accidental water damage, such as a burst pipe. However, overland flooding and sewer backup often require optional coverage.
Damage caused by gradual leaks, poor maintenance, mould or normal wear and tear may also be excluded.
With severe weather and water damage top concerns for Ontario homeowners, it's worth checking exactly what protection you have.
How Can You Make Sure Your Belongings Are Protected?
A little preparation today can make a big difference if you ever need to file a claim.
1. Create a home inventory. Walk through your home and document your belongings. Take photos or videos, and keep receipts for major purchases.
2. Know what your possessions are worth. Consider today's replacement costs, especially for jewellery, electronics, collectables, and other high-value items.
3. Review your policy limits. Check your contents coverage, special limits, deductibles and exclusions. Don't assume that your overall coverage amount applies equally to every item.
4. Ask about additional coverage. Depending on your needs, your broker may recommend increased limits or scheduled personal property coverage for specific valuables. Appraisals may be required for certain items.
5. Update your coverage as life changes. Renovations, major purchases, new hobbies and growing collections can all affect your insurance needs.
Don't Wait Until You Need to Make a Claim
Discovering a gap in your insurance coverage after a fire, theft or water damage claim is the last thing any homeowner wants.
At Gibb Insurance, we believe understanding your coverage is just as important as having it. Our team can help you review your existing home insurance policy, identify potential gaps and explore coverage options that fit your needs.
Not sure whether your valuables are properly insured?
Contact Gibb Insurance at 519-736-8228 to schedule a home insurance review.
We're here to help you protect your home and the things that make it yours.