Special Limits of Home Insurance

 In Blog, Home Insurance

Do you know what the Special Limits of your home insurance policy are? If you don’t, you’re not alone. Most home insurance policies include a Special Limits section that outlines specific items and their coverage limitations if they need to be replaced. In order to protect yourself and your precious belongings, it’s important to understand what’s included in the Special Limits of your home insurance. To find out more, read on.

What Do Special Limits Mean?

Special Limits mean that these items are generally covered if they are lost, stolen, or damaged — but only to the maximum amounts listed below. 

Example: if you have jewelry in your home valued at $25,000, your regular home insurance policy may only provide coverage for up to $6,000 if these items are lost, damaged, or stolen. If you want to insure your belongings for their full value, you may need to purchase additional insurance.

Some Examples of Special Limits Include*:

  • Business property (up to a maximum of $2,500 – $5,000)
  • Cannabis (plants and all consumable forms) – ($500)
  • Luggage, pet carriers, handbags ($10,000)
  • Money or cash cards ($1,000)
  • Securities ($1,000)
  • Spare auto parts ($1,000)
  • Bicycles ($1,000)
  • Jewellery, watches, furs ($6,000)
  • Stamp collections ($500-$1,000)
  • Outdoor trees and plants, excluding cannabis ($1,000)

*This is not an exhaustive list and is meant to provide a general example of most Special Limits, however they can vary from company to company.

Why Do Special Limits Exist On Home Insurance?

In most cases, Special Limits exist to help keep the cost of home insurance down — since not everyone commonly owns these types of belongings.

Next Steps

We always recommend that you review your home insurance policy with your advisor to ensure that you understand the coverages and have the best policy for your needs.

If you’re unfamiliar with your policy’s Special Limits or you’re concerned about your belongings, get in touch with the experts at Jeffery and Spence Insurance Brokers and we’d be happy to help!

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