By Jason MacDonald, Foxquilt —
Whether or not you wanted them to, family and friends often use the holiday season as a way to express their care for you with gifts and presents! And although it’s really the thought that counts when it comes to gifts, sometimes you may receive an expensive and special item as a present – let’s say, the vintage fur coat you’ve had your eye on since the beginning of the year, or a brand-new, lightweight, top-of-the-line bicycle. It’s easy to forget this important next step during the holidays when there’s so many plans and events but you should look into contents insurance and the special limits in your policy.
Chances are, you probably already have contents insurance as part of your home insurance policy package – especially if you’re renting as a tenant or own a condo as this is the main property coverage in those policies – since it covers your belongings that aren’t part of the actual home. Think: clothing, TVs, furniture and so on.
However, a common home insurance myth is that your contents insurance will cover and fully pay out for everything you own if something were to happen. That’s not necessarily the case as policies often have unique, lower sub-limits on special items such as jewellery, furs, collectibles, and bicycles, depending on the claim. If you receive a special, high-value item as a gift this holiday season, be sure to talk to your broker about what your special limits are and how to proceed in covering it.
There are several options, such as increasing the sub-limit or insuring the object on its own policy. Usually you can increase special limits across the board. You can also add a floater for specific items which can have the benefit of enhancing the coverage to anywhere outside your home and can remove the deductible.
Consider looking into contents insurance and their special limits for these items:
- Bicycles and their equipment
- Computer software
- Golf carts and their equipment/accessories
- Personal belongings in a safety deposit box located at a financial institution
- Personal belongings located at a nursing home or a residential care facility
- Watercraft and their accessories, equipment and motors
- Wine Collection
- Collectables (sports memorabilia, comics, rare books, coins, stamps etc)
- Jewelry, watches, gems, furs
As mentioned, the thought and care of getting the perfect gift may mean more than the monetary value of any item.
Contact us at Foxquilt to review your contents insurance situation to ensure it’s protected.
Learn more: Foxquilt has some holiday safety and home insurance tips to offer as we approach mid-December.
About The Author
Jason MacDonald has been licensed as a broker in Ontario and Alberta since 2014, has completed his CAIB designation and holds a Bachelor of Commerce with Honours in Business Administration from the University of Windsor’s Odette School of Business. Jason worked with the Hallmark Insurance Group where he received the President’s Award during his first year and was promoted to Commercial Insurance in the McLean Hallmark merger. There, he expanded into more complex commercial risks – ranging from Craft Distillers to Golf Courses to International Warehousing and Mining Companies. He also received McLean Hallmark’s “New Kid on the Block” Award for excelling in his first year in Commercial Insurance. Jason is now an Account Executive at Foxquilt and continues to insure personal and commercial properties using Foxquilt’s group insurance savings model.
Foxquilt is a Canadian financial technology company focused on using big data and machine learning to empower social groups to save on Home and Small Business insurance. We create new value opportunities for customers by bringing people and communities together online with a smart and modern approach to insurance. Leveraging innovative technology and creating unique products, we make it easy for customers to buy insurance online from leading carriers and access group purchasing power. Foxquilt customers achieve savings upfront on premiums, reduced deductibles and are rewarded with further savings at renewal. For more information, please visit www.foxquilt.com.