Does Your Insurance Cover Those Awesome Gifts?

A gift can be a wonderful surprise. The surprise of finding out your home insurance doesn’t cover it if you ever have to make a claim isn’t so wonderful. With the help of your Broker, you can ensure this never happens, by following these tips.

If you have homeowner or contents insurance, you probably assume it covers everything in your home. You might be surprised to find out there can be exceptions.

Two Common Reasons Your Policy Might Not Cover Everything In Your Home

  • High-valued items sometimes aren’t included in your policy, or the insurance limit is insufficient. You may need to insure items like high-end art or expensive jewellery through a “schedule” on your policy. It’s easy to set up and you can find out how below.
  • Even every-day items add up. Altogether your possessions could be worth more than you’ve insured them for. That’s especially true if you are lucky enough to receive some expensive gifts for a birthday or holiday, or if you’ve just been married or had a baby.

Wondering If You’re Covered?

Here are two ways you can ensure your insurance covers all of your awesome gifts.

1. Protect High-Value Items Through a “Schedule”

Ask your Broker if your high-value items need to be insured through a “schedule”. This is basically a list of special items, which require special coverage, attached to your existing policy.

You might be wondering why you need to do this if you already have a homeowners or contents policy. Usually a policy has a maximum amount payable (called the “Special Limit of Insurance”) for certain categories of items. When you “schedule” an item, the amount payable is the actual value of the item.

Also, some items may not be covered for all circumstances through your property policy. For example, if you lose a ring, some policies will not cover ‘mysterious disappearance’. However, if the ring was listed on a “schedule”, this situation would be covered.

Every insurance company offers different coverage and “Special Limits of Insurance”, so speak with your Broker to ensure you are adequately covered.

2. Be Prepared for a Claim by Keeping a Record of Special Items

Completing an inventory of your whole home, and keeping it up to date, is an important exercise so that should you experience a loss, you’ll know exactly what items are affected. But if you’ve never completed one, it can seem daunting. So, start with new, high-value items:

  • Take a picture of each item – so you can show your insurance company exactly what you’re claiming for
  • File the receipts – so you can prove the exact value
  • Insure new items – by adding them to your existing policy
  • Store your inventory – so that it’s safe and accessible in the event of a loss, such as a fire-proof filing cabinet or a safe deposit box

Once your big-ticket items are inventoried, walk around your home documenting your regular contents. Taking a video will help you remember what you own in every room of the house.

Whether or not you need to specially insure an item, such as on a “schedule”, taking a picture and filing the receipt is quick and easy. Taking a video of every-day items is even easier. If you ever have a claim, your insurance company will ask for details on what you’ve lost, and you’ll be glad you have this information at your fingertips.

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