A Happy woman hugging her husband with a small red box (a gift) in her hands.

Does Your Insurance Cover Those Awesome Gifts?

February 12, 2019 / Katharine Gebhardt

This article can help your clients understand the importance of adding high-value items to their policy and cause them to revisit their policy content coverage.

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. Although it can happen, with the help of your broker, it’s absolutely avoidable with 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-value items sometimes aren’t included in your policy. You need a “schedule” for those items. It’s easy to set up and you can find out how below. 
  • Even everyday 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 get 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 Relax and know what’s covered.

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

Ask your broker if your high-value items need a “schedule”. This is basically a list of special items you need to cover, attached to your existing policy. You might add a schedule for a piece of art or jewellery, for example. 

You might be wondering why you need to do this, if you already have a homeowners or content policy. Usually a policy has maximum amount (called a “special limit”) for certain categories of items. By adding an item in the schedule, it takes your coverage beyond that limit. All policies have special limits, but they aren’t the same from company to company. Having special limits in a policy makes them more affordable, with the option to add the schedules if you have more than average to insure.

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

Of course it’s best to do a regular inventory of your whole home. But if you’ve never done that, it can seem daunting. So, start with new, high-value items:
  • Take a picture of each item – In a claim, you need to show exactly what you’re claiming for
  • File the receipts – So you can show exact value
  • Insure new items – Either with a new policy, or by adding them to your existing policy

This 5 Minutes Can Make a Big Difference

Whether or not you need to insure it, taking a picture and filing the receipt are quick and easy. If you ever have a claim, your insurer will ask for these and you’ll be glad you have them.

Have Questions?

Give your broker a call. They’ll help you decide if you need to take action to be prepared – just in case.

Together with CAA Insurance, we want to help you Relax. Know What’s Covered. We hope you don’t experience a loss or claim, but understanding your insurance and taking a few simple steps can make it easier if you do.