Update Home Insurance Plans To Include Household Valuables

By: Gary Parkinson on October 11, 2014

The largest cause of home insurance claims in Canada is water damage caused by heavy rain, overland flooding, or a combination of the two. Other elements like fire or wind can also be responsible for home insurance claims, though at a far lesser extent than water damage, especially in recent years.

Homeowners can financially prepare for many of these disasters by opting into the right home insurance policy. However, if those policies are not updated annually or within every few years, there are some household items that may be left out of the plan, subsequently forcing the victim to pay for the losses out of pocket.

The IBC frequently finds that homeowners do not update their policies to include smaller items of value like jewellery, family inheritances, or even their newest mobile devices. Coverage for these types of items can be covered under a home insurance plan, but at an additional, optional cost that must be negotiated with the insurance provider.

IBC spokesperson Pierre Babinsky was in Montreal this week where he discussed the rate of break-ins in Quebec and across Canada where victims lost small items of value. Babinsky says claims for stolen jewellery can be submitted for amounts as high as $6,000, but the actual amount depends on the plan and the insurer.

“What we see is that often enough people underestimate the value of the goods they accumulate over the years, so an adequate update of your inventory and adjustment to your policy is the basic principle to ensure you have the proper coverage.”

Insurance claims for stolen jewellery and other heirlooms are far less common, and less expensive for insurers than other reasons for claims, such as damage to the home itself. The IBC advises homeowners to document all items of value within the home, either on paper or recorded on camera in the event a claim is required.

Any questions about what may or may not be covered under the plan should be shared with the insurer to acquire the right answers.