Property Insurance: Special Limits


When it comes to reviewing Property Insurance policies, most people read over the declaration page which outlines the coverage and premium. But how many people actually read their policy wordings and know the special limits and exclusions associated with their policy?

One section of the policy wordings that we wanted to bring to your attention is the section titled “Special Limits”.  Although these Special Limits can vary slightly between Insurance Companies, we wanted to:

1) Make you aware that they exist, and,

2) Outline what is most commonly included (or excluded).

What is a Special Limit?

A Special Limit is the MOST that the Insurance Company will pay for insured loss or damage in any one occurrence for a specific type of personal property. The types of personal property that commonly have Special Limits applied to them are:

– Money or cash cards
– Business property (only while on your premises)
– Business property of others (usually not covered)
– Securities
– Watercraft, furnishings, equipment and motors
– Utility trailers, spare auto parts
– Jewellery, watches, gems, fur
– Coin, banknote, stamp collections
– Bicycles
– Collectible cards

Scheduled Items

Should you wish to insure these items for more than the Special Limit that applies on your policy, they can be added as a scheduled item onto your property insurance policy for an additional premium. In the event these items are scheduled, there would be a reduced deductible (or in some cases, no deductible), and any claim would be settled based on the scheduled amount of insurance. Some items, such as business property, can be insured under a separate Commercial insurance policy.

Review your Policy Wordings!

A Comprehensive Homeowner’s, Tenant, or Condominium policy wording can often exceed twenty pages in length. Although time-consuming, we strongly suggest that you sit down with a warm cup of coffee or tea one evening and review your policy wordings. Once you have had a chance to do so, you should have a better understanding of what your policy does and does not cover, and any special limits that may apply. And if you are unclear on any of the wordings, as always, we are more than happy to answer your questions and assist you in any way possible.

Thank you and happy reading!

The Costen Insurance Team