In 2014, over 150,000 Canadian households experienced a break-and-enter. While your home insurance provides basic coverage for items such as furniture, appliances and clothing, items of higher value like jewellery, art or musical instruments require an added level of protection.
Your home insurance policy may not be enough.
Consider a Personal Articles Floater your own insurance lifesaver . ‘Floater’ policies act as additional coverage for individual disclosed items with a limit that will cover the additional value gap between your home insurance limit and the appraised value of the item.
For example, take the below engagement ring. In the event of an incident, your current home insurance policy may only cover the value of the ring for $1,000. A Personal Article Floater policy will provide coverage and reimbursement for the total value, as long as an appraisal was done within the last five years.
There are a variety of items that qualify for protection under a Personal Articles Floater policy including:
- Fine art
- Collections such as coins, stamps, sports memorabilia, collectables or wine
- Antiques and heirloom pieces
- Musical instruments
- Camera equipment
- Sporting equipment such as bikes or skis
Before purchasing a Personal Articles Floater, you should first make a list of your most valuable possessions. Next, hire a qualified appraiser to determine the current value of the items. Their appraisal should include:
- Your name and address
- Purpose of the appraisal or its intended use, for example: donation, estate or insurance
- Type of evaluation used: replacement value or fair market value (for insurance purposes, choose replacement value)
- If the items are valued in Canadian or American dollars
- Qualifications of the appraiser
- Appraisal date
- Statement of physical inspection or method used in determining value, noting all qualifications (such as: description, cut, clarity, size or weight)
- Statement of belief in authenticity
It’s important to update your appraisal every five years to ensure that the value of your items is accurately represented, especially in the event the item appreciates in value over time.
If you already have a floater for a specific kind of item, any newly acquired item in this same category is automatically covered under this floater for up to 30 days. After that, you must add it specifically to your insurance policy.
BrokerLink tip: One of the ways you can protect your belongings, have peace of mind and save on your insurance is by installing a monitored home security system. Learn how home security systems affect your home insurance.
Whether you have high value items or not, it’s a good idea to make sure your coverage needs are being met. Our downloadable home inventory checklist can help you take regular inventory of your belongings.
Preparing a list of your possessions beforehand is much easier than creating a list from memory later. Along with photos and proof of ownership, a home inventory list will make it easier and faster to file an insurance claim.
Let a Personal Article Floater policy be a life raft for your most precious possessions. To learn more, talk to a BrokerLink broker today.