Home insurance is designed to fit your lifestyle, but there are a few important details worth knowing. Understanding them better can help you optimize your coverage and make the most of the protection that suits your needs.
Among the many ideas people have about home insurance, two myths come up time and time again. Can you tell which ones are true… and which are false?
Myth #1: All my high-value belongings are automatically covered by my home insurance policy.
FALSE.
Home insurance policies generally provide compensation limits and, in some cases, exclusions for certain categories of highly sought-after property, such as jewelry, bicycles, cash, works of art, etc. For jewelry, for example, that limit is often around $5,000. So, if you own a ring valued at $10,000, it’s important to know that without notifying your insurer beforehand, compensation in the event of a claim would be capped at $5,000.
Fortunately, adjusting your coverage is simple. By providing an appraisal or proof of purchase, your broker can add specific coverage, so your valuable belongings are insured for their full value.
That’s why it’s important to discuss it when submitting or reviewing your file. If you own a bicycle, a video game collection, watches, jewelry, or any other out-of-the-ordinary belongings, just a few minutes of discussion are enough to build coverage that truly reflects what you own and adjust it as needed if your situation changes.
Myth 2: My home insurance covers my belongings, even while traveling.
TRUE.
Good news: your personal belongings are covered anywhere in the world when you travel, subject to a limitation for belongings kept away from the premises temporarily. If an airline loses your suitcase, for example, you may be able to file a claim under your home insurance policy. It’s valuable protection, especially for frequent travelers.
It’s always a good idea to assess the situation before filing a claim. A deductible applies, and depending on the value of the lost items, it may be worth discussing your options before deciding.
When you return from a trip, take the time to make a list of the lost items, estimate their value, and gather any available receipts or proof of purchase. This will help you determine whether it’s worthwhile filing a claim.
Do you have questions about your home insurance? Contact us here or call 1-855-587-7437.
Charles-Alexandre Hébert
Broker - Business Developpement • Personal Lines Insurance
