Beyond basic home insurance coverage

In this section, we'll look at options or features you can choose for your home insurance policy that go beyond just basic coverage.

Replacement value

Replacement value coverage means that the contents of your home are insured for the amount it costs to replace them. When you replace the item(s) with a similar kind and quality, within a specified time, the insurer will pay you what it cost you to replace the item(s) not what they were actually worth in their used state. This is the most common option added to property policies and some insurance companies include this coverage automatically.

Jewellery coverage

Some policy limits the amount and type of coverage available for your jewellery and furs. Most insurance companies have a limit around $5000. (And remember, if you have a claim you'll also have to pay your deductible!) Jewellery coverage is a smart idea if you want to eliminate your deductible, or if you have a single piece of jewellery that exceeds the $5,000 limit. You can also use this option to itemize your larger pieces of jewellery separately, and use the basic policy limit to cover your smaller valued pieces.

Fur coverage

Some policy limits the amount and type of coverage available for your jewellery and furs. Most insurance companies have a limit around $5000. (And remember, if you have a claim, you'll also have to pay your deductible!) Fur coverage is a smart idea if you want to eliminate your deductible, or if you have a fur that exceeds the standard limit.

Sewer backup coverage

Your property policy covers you for any damages caused by a sudden, accidental discharge of water in your home. This includes coverage for freezing pipes and the overflow of water from public water mains carrying drinking water. If you want to be covered for damages caused by the back up of sewers, septic tanks, eaves troughs or downspouts, you should purchase the Sewer Back Up Option.

Earthquake coverage

A basic property policy doesn't include coverage for earthquake damage. If you live in British Columbia or Southern Quebec, you should seriously consider this option. The probability of experiencing an earthquake is much greater in these areas of Canada.

Limitations in coverage

Keep this in mind. You can expect to see limitations in theft coverage for jewellery and furs, silverware, business property, bicycles, money, boat and motor. If you have any of these special items, you'll want to consider adding additional coverage to your policy.

Property and home insurance quickguides

• Introduction to property insurance in Canada
• Standard home coverages
• Standard condo coverages
• Standard tenant or renters coverage
• Beyond basic coverage
• How insurance is calculated
• How to reduce your insurance premium
• Taking advantage of insurance discounts
• Special situations

The information contained within this article is subject to change. Always speak with your current insurance supplier, or a licensed insurance representative, to answer your specific questions. The information collected and compiled here is intended to simply act as a guide.