All property insurance policies have certain limitations or exclusions that policyholders need to be aware of. Unfortunately, most policyholders simply skim over their policy and tuck it away in a drawer somewhere.
Now that the holidays are fast approaching, we wanted to bring the “special limits” commonly found in personal property insurance policies to your attention.
What are “Special Limits”?
A “special limit” is the maximum amount that an insurance company will pay in the event of a loss for a specific type of property. Though not an exhaustive list, below are some examples of the types of property that commonly carry special limits are:
- Jewelry, watches, gems, fur garments and garments trimmed with fur
- Collections of coins, money, tokens, or stamps
- Collectibles such as sports cards, sports memorabilia, comic books, etc
- Silverware, silver-plated ware, gold ware, gold-plated ware and pewter ware
- Books, tools and instruments pertaining to a business
- Securities, books of account, deeds, evidences of debt or title, letters of credit, notes other than bank notes, manuscripts, passports, tickets and documents or other evidence to establish ownership or the right to claim a benefit
- Money, bullion, or cash cards
- Golf carts, lawn and/or garden tractors including their attachments and accessories
- Watercraft, their furnishings, equipment, accessories and motors
- Computer software
- Antiques
- Bicycles and related equipment
- Spare automobile parts
Reviewing your Policy
Each insurer is different. It’s important that you take the time to read through your policy including the actual company wordings. This may seem like a daunting task. The wordings are long with very small print, but its an important exercise that will give you a better understanding of what coverages you have – and you may even discover some coverages you’re missing.
If you do review your policy and find that you want to insure any of the “special limit” items for more than the specified amount, be sure to ask your broker if you can purchase a higher limit by scheduling the item onto your property policy.
As always, if you’re unsure, contact your broker today to find out about the limitation and exclusions on your policy. Don’t wait until there’s been a loss to find out you don’t have the coverage you need.
