Dusyk & Barlow Insurance Brokers Ltd. has two locations in Regina, SK.  We are family-based, locally-owned Insurance brokers who have been involved in the Saskatchewan insurance industry since 1936.  Insurance products we offer include auto insurance, including Saskatchewan SGI motor licensing services, home insurance, condo insurance, tenant insurance, travel medical insurance, commercial insurance, and bonding and surety services.  In our latest article, we share advice about adequate residential insurance coverage.

Reviewing Your Belongings: The Importance of Ensuring Proper Residential Insurance Coverage

We often underestimate the value of our personal belongings until the unexpected happens. Whether it’s a theft, a fire, or a natural disaster, having the right insurance coverage can be a lifesaver when protecting your valuable possessions. One crucial but often overlooked aspect of insurance is ensuring that your belongings are adequately covered. In this blog post, we’ll explore why it’s essential to review your belongings, such as jewelry, musical instruments, and collectibles, to make sure your insurance policy fully protects them. We’ll also discuss when to increase your basic coverage or opt for individual insurance for specific items.

  1. The Changing Value of Your Belongings

Over time, the value of your possessions can change significantly. This is especially true for items like jewelry, which may appreciate in value, or collectibles that become worth more as they age. When you initially set up your insurance policy, you may have accurately estimated the value of these items, but it’s crucial to revisit their worth periodically. Failing to do so can result in being underinsured and not receiving adequate compensation if something happens to them.

  1. Standard Insurance Coverage May Have Limits

Most standard home insurance policies limit coverage for items like jewelry, musical instruments, and collectibles. These limits are typically a percentage of your policy’s total coverage for personal property. If the value of your belongings exceeds these limits, you risk being inadequately covered. For example, if your policy has a limit of $2,000 for jewelry, but your engagement ring alone is worth $5,000, you would only receive $2,000 if it’s stolen or damaged, leaving you with a significant financial loss.

  1. When to Consider Increasing Coverage

To avoid being underinsured, it’s essential to reassess your insurance coverage when the value of your belongings changes. Here are some situations when you should consider increasing your coverage:

Valuable Additions: If you acquire new items, such as expensive jewelry, high-end musical instruments, or rare collectibles, you should notify your insurance provider and increase your coverage accordingly.

Appreciating Assets: If the value of your possessions has increased due to market trends or appreciation over time, it’s wise to update your coverage to reflect their current worth.

Inflation: The cost of replacing your belongings may rise due to inflation. Regularly reviewing and adjusting your coverage can ensure you’re adequately protected against these rising costs.

  1. Insuring Items Individually

Individual insurance policies, also known as “floater” or “rider” policies, might be more practical for precious items. These policies provide specific coverage for one item or a group of items, and they offer advantages like:

Higher Coverage Limits: Individual policies often have higher coverage limits than standard homeowners’ or renters’ insurance, ensuring your high-value items are fully protected.

No Deductibles: Some individual policies may have no or lower deductibles, making it more cost-effective if you need to file a claim.

Specialized Coverage: These policies may offer broader coverage options and protection against additional risks, such as accidental damage or loss outside the home.

Regularly reviewing your belongings and assessing their insurance coverage is crucial to maintaining comprehensive protection for your valuable possessions. Remember that the value of your items can change over time, and standard insurance policies may have limits that leave you underinsured. To ensure peace of mind and financial security, take the time to revisit your insurance policies, consider increasing coverage where necessary, and explore the option of individual insurance for your most valuable possessions. By doing so, you can rest assured that your treasured items are fully covered in the event of the unexpected.

If you would like additional information, a quote on insurance, or information about any insurance products we provide, don’t hesitate to contact us at either of Dusyk & Barlow’s locations.