Do You Need Extra Insurance for High-Value Items?

When it comes to protecting your home and belongings, a standard home insurance policy offers essential coverage for most of your possessions. However, if you own high-value items like jewelry, fine art, antiques, luxury watches, or collectibles, you may be surprised to learn that these items aren’t always fully covered. In fact, many standard home insurance policies have strict limits on how much they will reimburse for specific types of valuables.

Please note: This blog provides a general overview of updating your home insurance policy. It is not all-encompassing and should not be taken as specific advice. Be sure to discuss your unique circumstances with a licenced insurance broker to receive guidance tailored to your situation.

What Counts as a High-Value Item?

• High-value items typically include possessions that are significantly more expensive than average household contents. Some of the most common types include:
• Jewelry (engagement rings, heirlooms, gold chains)
• Fine art and sculptures
• Antiques and vintage furniture
• Designer handbags and fashion accessories
• High-end electronics (home theatre systems, photography equipment)
• Luxury watches
• Rare collectibles (coins, stamps, memorabilia)
• Musical instruments

If you own any of these, your insurance provider will likely impose a coverage limit on what you can claim in the event of loss. For example, many policies cap jewelry claims at around $6,000, which may not come close to replacing a high-end engagement ring.

What Are Standard Coverage Limits?

Most Canadian home insurance policies come with pre-set limits for valuables. Here are typical limits you might encounter:

• Jewelry: $3,000 - $6,000 total
• Artwork: $5,000 - $10,000
• Collectibles: $2,000 - $5,000
• Electronics: $1,000 - $5,000 per item

These caps are often far below the actual value of high-end items, and they apply whether the item is lost, stolen, or damaged. This means if your $25,000 art collection is destroyed in a fire, you may only be reimbursed for a fraction of its value unless you have extra protection in place.

Why a Personal Property Endorsement Matters

To protect high-value belongings that exceed the limits of a standard home insurance policy, adding a personal property endorsement, also known as a “rider” or “floater”, is often essential. This type of coverage matters because it offers extended protection for specific items, raising the claim limits to reflect their true value. Unlike general contents coverage, which may only insure valuables up to a few thousand dollars, a personal property endorsement ensures that individual items are covered for their full appraised amount.

Additionally, a personal property endorsement in Canada, typically provides all-risk protection, meaning you're covered for a broader range of scenarios, including accidental loss or damage—not just theft or fire. These endorsements are tailored to each item and usually require documentation or a professional appraisal. For instance, if you own a $12,000 diamond ring or a $15,000 vintage guitar, a floater guarantees you’ll be reimbursed appropriately if something happens to those prized possessions.

How to Appraise and Document Your High-Value Belongings

Before you can get extra insurance, your provider will likely ask for proof of the item's value. Here’s how to prepare:

1. Get a professional appraisal: Look for certified appraisers who specialize in the type of item (jewelry, art, antiques, etc.).
2. Keep receipts and certificates: Any paperwork proving purchase price or authenticity can help.
3. Photograph your items: Document the condition and store these photos somewhere secure.
4. Create an inventory list: Include descriptions, serial numbers, and any valuation details.

Having this documentation will streamline the process of getting additional coverage and make filing a claim much easier.

When You Should Consider Extra Insurance

There are several situations when it’s especially important to consider purchasing extra insurance for your high-value belongings. For instance, if you’ve recently received or purchased a valuable item, such as an engagement ring, rare collectible, or antique furniture, it’s wise to update your policy immediately to reflect its worth. Inherited items can also pose a risk if they haven’t been formally documented or appraised for insurance purposes, leaving a potential gap in coverage.

If you're storing valuables off-site, like in a safety deposit box or another property, your standard home policy may not extend to those locations, making additional coverage necessary. Similarly, if you travel frequently and take expensive items with you, such as jewelry, electronics, or high-end accessories, adding a personal property endorsement can ensure you're protected even when you're away from home.

The key thing to remember is that coverage for high-value items is not automatic. Assuming your standard home insurance will fully reimburse a $20,000 necklace, for example, could lead to a costly and frustrating surprise if you ever need to file a claim.

Common Misconceptions About High-Value Item Coverage

Many homeowners believe that because they have "comprehensive" or "all-risk" home insurance, all their belongings are fully protected. Unfortunately, that’s not the case for most high-value items.

Let’s bust some common myths:

• Myth: All belongings are covered equally.
   Fact: Item-specific sub-limits apply to certain categories.
• Myth: Theft outside the home is always covered.
   Fact: Some policies only cover loss within your residence unless an endorsement is added.
• Myth: You can get reimbursed based on market value.
   Fact: Reimbursement often depends on replacement cost or declared value.

Don’t rely on assumptions. If an item is especially valuable to you, make sure it has the coverage it needs.

Does Adding an Endorsement Increase My Premium?

Yes, your home insurance premium may increase slightly when you add a personal property endorsement. However, the cost is often minimal compared to the value you stand to lose. For example:

• Insuring a $10,000 ring might cost $100-$150 annually
• A $15,000 painting could be covered for around $200 per year

Premiums depend on the item type, value, your claims history, and the insurer’s risk calculations. Speak with your broker for a personalized quote.

How to Get the Right Coverage

To protect your most valuable belongings, follow these steps:

1. Review your current policy to understand what limits apply to valuables
2. Make an inventory of your high-value items
3. Get appraisals for anything you believe may exceed your standard limits
4. Contact your broker to discuss endorsement options

At BIG Insurance, our brokers specialize in customizing home insurance coverage to match your lifestyle.

Standard home insurance is designed to cover typical household belongings, but it often falls short when it comes to protecting high-value items. If you own luxury goods, valuable collections, or heirlooms, extra coverage through a personal property endorsement is not just smart—it’s essential.

Want to protect your high-value items properly? Contact a BIG Insurance broker today for a no-obligation quote and personalized advice.