Limits and Floaters and Schedules, oh my! The 411 on Contents Insurance and insuring your stuff

Contents Insurance, otherwise known as insurance for your stuff, is super important. But, most people can agree that getting the right insurance for your belongings can be confusing. Don’t despair. The Home Insurance People are here to help you. Today, we’re going to wade through the confusing world of insuring your stuff properly. We promise, it won’t hurt at all.

Contents Insurance and Special Limits

All standard insurance policies will have something called Special Limits showing somewhere on the paperwork. What those limits are referencing are the agreed amounts that the Insurance Company will pay for the coverage’s showing. Most of the time the items that show under the Special Limits are items with either a higher value associated with them, or a higher risk of claim. An item that has both (like bikes) will almost always show under the Special Limits.

What if you DON’T have anything on that list?

Then you don’t need to worry. Often people think that they are paying more for those Special Limits. In truth, those limits are really restrictions to what your policy will pay. They’re “Limiting” the Contents Insurance payout for those specific items (see what we did there?). If you don’t see anything on the Special Limits that you need coverage for, you can go along your merry way.

What if you DO have items on that list?

Take a look at the amount of Contents Insurance that is showing for that item. If what you have in your home is under that limit, you’re doing great. If you have more than the limit, we need to talk.

How do you increase those amounts?

There are a few options for you. Some Insurance Markets will allow you to increase the Special Limits themselves. This may mean that you buy one of their ‘Preferred’ package policies, or you pay a little extra to increase all the limits. In some cases though we would suggest that you add on an floater or schedule.

Insurance Floaters and Insurance Schedules

Essentially a floater and a schedule are the same thing. In non-insurance terms, they are extra insurance that you buy to protect a specific item. You pay a little more, but that item is guaranteed to be replaced with like kind and quality if you have a claim, even if the item is normally limited on your Contents Insurance. An added benefit is that most schedules will also lower the deductible that you pay if you claim that item.

What do we need to add a floater?

Normally we don’t require too many details about your belongings when setting up your Contents Insurance. When we add a Floater to your policy we do need more information. Take a Bike Schedule. Often we will ask for a copy of the receipt from when your purchased the bike. We will also ask for the description of the bike (make, model, serial number). Those details will then show on the floater, so that you know you are fully insured.  Some scheduled items will also need an appraisal, especially for items that fluctuate in value, such as jewellery.

You can find more details about how to calculate the right contents amount here. Keep in mind, if you ever wonder about whether something is covered by your Contents Insurance you only need to give us a call. We love to talk about insurance and can help you make the right decisions about how to ensure that your stuff stays insured.

Contents Insurance