Claims questions: home burglary and limitations

“While I was away on vacation my home was burglarized. The burglars smashed a window and made off with my computer, some jewellery, and some coins I had been collecting. I called my insurance company and was told certain limits apply. I wasn’t aware of that.”

Response by Ibrahima, Claims Centre Agent:

Insurance policies contain certain limits on coverage which you’ll see in the first section under “Personal Property Insurance.” What the limits mean is that in case of theft, for instance, the compensation payable cannot exceed the amount specified in your insurance policy

Here is an example of some of the limits set out in one of our home insurance policies:

- jewellery: $5000

- cash: $400

- bicycle: $3000

- collectibles: $6000

Why do these limits exist? An insurance policy is designed to cover belongings that are normally all found in the home. In the case of certain valuables, over and above the limits on the amount of compensation, we ask professional analysts to do an assessment in order to tailor premiums and coverage to the needs of the policyholder.

The limits that apply to various types of belongings can vary from one policy to another. For example, in the case of jewellery theft, depending on the policy, there can be limits of $2000, $4000, $5000 and even $50,000.

That’s why it’s important to find out what limits apply to your home insurance policy.

Software is covered in case of theft but the limits vary. Depending on the type of policy you have your limit could be $2000, $3000, $4000 or $5000.  The same is true for video games of all kinds.

Take an inventory of your belongings, keep all your bills, take photos and keep all these records in a safe place, such as a safety deposit box at your bank. You can also scan them into a digital record and email a copy to yourself. That will make it much easier to settle a claim should the need arise.