This is a question with a long answer, but it’s important that you understand what the coverages and limits are under your home insurance policy. The following list is not exhaustive to your insurance policy and we recommend that you speak with an Insurance Advisor at Roughley Insurance who can tell you the coverages we recommend for your unique situation. You can count on us to have the answer to any of your insurance questions – we are standing by ready to help!
There are certain perils* that are standard under a home insurance policy. These are things like fire, lighting, smoke (not caused by fireplaces), vandalism, theft, aircraft or vehicle impact, falling objects (except if caused by earthquake or snow slide), and water damage (not all water damage is covered).
The Financial Services of Ontario Commissions outlines the three typical coverages under your home insurance policy:
- Dwelling: Covers damage or loss to the dwelling building (perils covered are outlined in your policy).
- Contents: Covers your personal belongings against an insured peril (fire, theft, etc.). Your policy will have “special limits” on some items which can be found under the policy.
- Personal Liability: Coverage for legal liability to others because of bodily injury and property damage. Your homeowner’s insurance policy will show your amount of coverage on the declaration page within your policy. We recommended that you carry a minimum of $2,000,000 liability.
There are special limits under a home insurance policy. These limits/coverages can vary from company to company and you should refer to your policy wording to obtain this information.
Examples of some special limits are:
- Money: There is a $500 limit on money kept within your home. This means if you have $10,000 kept in a safe, only $500 of that is covered under your home insurance policy if you file a theft claim.
- Business supplies such as tools while at your home: For example, if you are a contractor and you have your tools kept at your residence, your home insurance policy will only cover these supplies up to a maximum of $2000 if a covered loss occurs. Important to note is that your home insurance policy does not cover business property off your home premises. These items can and should be included in your commercial insurance policy.
- Jewelry: There is a $6000 limit on jewelry, no matter the actual cost of your precious belongings. We recommend adding a scheduled personal article, like engagement rings, so that they are covered in full.
- Bicycles: $2000 limit on bicycles. If your bike is valued at more than $2000, than it is not fully covered under your home insurance policy.
- Collections like baseball cards, coins and stamps: There is often a limit of $3000 for things like collections. If your collection is worth more than this, we recommend adding an endorsement to your policy.
You don’t need to be an insurance expert because you have Roughley Insurance! There are many, many special limits and endorsements that can be added to your home insurance policy. What works for you is dependent upon your unique situation – there is not a one-size-fits-all insurance formula.
If you have any questions about your homeowner’s insurance policy, we are available by phone and by email to review your policy with you.
*Peril: An event or occurrence that could put your home at risk.
*Endorsement: An endorsement is an add-on to your insurance policy that covers a specific item or event. These are optional.
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