Home insurance is a way to help handle the cost of unexpected events, such as damage to a home. The “unexpected” can also happen to valuables, including jewellery or paintings. When it comes to insuring valuables, scheduled reappraisals – a specified time frame customers follow, set out in an insurance policy, to complete a reappraisal – are important. We outline why and the benefits of sticking to a reappraisal schedule.
Why reappraisals are important
While dependent on the home insurance policy, reappraisals are usually scheduled every three to five years. Reappraisals are completed by a certified appraiser; once complete, the owner sends the certificate to their broker. If the owner doesn’t complete their reappraisal within the required time frame set by their insurance provider and a loss occurs, the owner may not receive the market value of the item if they make a claim. Instead, the owner would receive a maximum of the value of the item when it was last appraised.
In addition to ensuring an owner gets the market value of their item, there are benefits of scheduled reappraisals. These benefits will be dependent on the policy and could vary by province.
1. No deductible or reduced deductible: while dependent on the policy, if a homeowner has a valuable on a scheduled reappraisal and a it becomes lost or damaged, they may only need to pay a reduced deductible or no deductible.
2. Coverage for mysterious disappearances: any event which occurs where the owner can’t account for how their valuable went missing, is called a “mysterious disappearance.” For example, if a person suddenly lost a diamond earring while they were at work (such as the backing becoming lose) this could be classified as a “mysterious disappearance.”
3. Protection of claims record: if an owner makes a claim on a scheduled item, it may not count against their claims history. A claims free discount could also be applied if the owner is claim free for one year – a BrokerLink broker can explain how this discount works and if it can be applied to the owner’s home-insurance policy. Additionally, each year an owner is claims free, their claims-free discount could increase – a BrokerLink broker can also provide more details as this can be dependent on the policy.
Common reappraisal questions
1. What happens if an appraisal is never completed?
A home insurance policy usually has a set amount of money to cover the cost of lost or stolen valuables. If a valuable is never appraised and it’s lost or stolen, the owner will only receive the amount of money identified in the policy – which may or may not reflect the value of the item. Depending on the item and policy purchased, certain items are subject to special limits. A BrokerLink broker can verify these limits, as they change depending on the insurance company.
2. What information needs to be on an appraisal certificate?
The information needed on an appraisal certificate will depend on the policy and item being appraised. A BrokerLink broker will be able to determine this information for an owner. In general, information in the appraisal will include a summary of the item, estimated value and the appraiser’s credentials.
3. How are certified appraisers found?
To find a certified appraiser, it’s recommended to contact well-known sellers of the object being appraised – such as a chain jewellery store. These sellers are usually able to recommend a certified appraiser.
In addition to helping customers find insurance which covers the expense of their valuables, BrokerLink brokers can help in the reminder process.
“We do our best to ensure customers are aware of when it’s time for their scheduled reappraisal so they don’t forget,” said personal insurance manager Meghan Noren. “We care and want to ensure if a claim occurs, it goes as smoothly as possible.”
To learn more about the reappraisal process, contact a BrokerLink broker.