Home insurance Yorkton

How much coverage should you have for personal belongings?

Figuring out how much coverage you need for your belongings is actually easier than it sounds. The most important thing is making sure you have enough coverage to be able to replace what matters most if the worst happens. Here’s how to figure out how much you need:

Make an inventory list

Walk through your home and make a home inventory list of everything you’d want replaced after a fire, break-in, flood, etc. Furniture, electronics, clothing, sports gear, and even smaller kitchen appliances can add up quickly.

Estimate the cost

Most standard home insurance policies set their contents coverage between 50% to 70% of your dwelling coverage.

So, if your home is insured for $300,000, you could have between $150,000 and $210,000 for personal belongings. If you estimate that your personal property is worth more than that, ask about

Factor in valuables

While contents coverage has an overall limit, specific items generally have their own limit. Most items fall under a standard limit, but some may fall under custom limits, depending on their value, like:

• Jewellery

• Furs

• Fine art

• Bicycles

• Golf clubs

• Musical instruments

• Collections (e.g., cards, wine, coins, etc.)

If an item qualifies for custom limits, you can increase its limits to make sure that it's fully covered in the event of a total loss.

Consult with a broker

An experienced broker can walk you through your policy, review your inventory list with you, and recommend whether you need extra coverage. You can also keep them updated anytime you bring in new furniture or upgrade appliances, so they can make sure your coverage always matches what’s in your home.

All in all, try to aim for enough coverage that can replace everything you own, and not just the bigger items. Building a home inventory list now can help save you stress later if you ever need to make a claim.

How does your home insurance deductible affect your monthly cost?

Your deductible is the amount that you agree to pay out of pocket when you file a claim before your insurance kicks in to cover the rest. The higher your number is, the lower your monthly bill usually is. But if you select a lower deductible, you’ll likely pay more each month.

• Higher deductible = lower premium

• Lower deductible = higher premium

Insurance companies set insurance premiums based on the level of risk. When you choose a higher deductible, you’re taking on more of that risk yourself. This means that if something happens, you’ve agreed to pay a larger portion of the damage before your insurance company steps in. And since you've agreed to pay more upfront, it means the insurer is less likely to be on the hook for covering smaller claims, so they thank you by charging less each month.

Here's an example:

Let's say you have a $2,000 deductible (instead of, say, $500). One winter afternoon, your kid accidentally slaps a hockey puck through your kitchen window. You contact a window repair service, and they quote you $1,650 to replace it. Since that's less than your deductible, you pay for it fully out of pocket instead of filing a smaller claim.

Basically, the deductible you choose shows how much of the financial responsibility you’re comfortable carrying yourself versus handing off to your insurer. Just make sure to choose an amount you could realistically handle covering on short notice.