When Emma bought her first home in Toronto, she felt thrilled to start a new chapter. After a long search, she found the perfect house and, of course, took out a standard home insurance policy. Her mind felt at ease knowing her home and belongings were covered.
However, when a break‑in occurred and her collection of high‑value jewellery and antique furniture was stolen, Emma was shocked to learn that they weren’t covered by her standard policy. The insurance company explained that valuable items like these often require additional coverage, which wasn’t included in her basic plan.
Emma’s experience is not unique. Many homeowners, especially those with high-value items, are surprised to discover that their standard home insurance policy doesn’t fully protect certain possessions. In fact, some of the most valuable items in a home — such as fine art, jewellery, collectables, and even expensive electronics — may require special endorsements or additional coverage.
To avoid being in the same position as Emma, you must understand these exclusions in advance. Let’s explore the types of high-value items typically not covered by standard home insurance policies in Ontario and what to consider when comparing quotes.
Standard home insurance policies in Canada include “personal property” or “contents” coverage, but this coverage often contains sub-limits — also called “special limits” — for specific categories of valuables. That means even if your total contents coverage is high (e.g., $200,000), the maximum claim allowed for certain types of items may be much lower.
These sub-limits are commonly set between $1,000 and $10,000 per category, which rarely covers the full value of a high-end collection. You should always review the “Personal Property” section of your policy to find these limits.
Several types of items almost always fall under these low sub-limits. If you own any of the following, you likely need extra protection:
Jewellery, watches, and furs: This is one of the most common areas where coverage falls short. For example, your policy might limit total jewellery coverage to $5,000. If your engagement ring, wedding bands, and other pieces are worth $25,000, you would only receive the sub-limit amount in a claim.
Collectables: Items such as coins, stamps, trading cards, and rare memorabilia often have very low sub-limits — sometimes as low as $2,000 — which means you would not be able to replace your collection if it is lost or stolen.
Fine art and antiques: High-value paintings, sculptures, and antique furniture typically fall under a combined limit, often around $5,000 to $10,000. A single valuable piece can easily exceed that amount.
Precious metals and bullion: Many insurers cap coverage for gold, silver, and platinum (especially in bullion form) at $1,000 to $5,000, if they cover it at all. Some providers may require a separate policy for these items.
Bicycles and watercraft: High-end road bikes, mountain bikes, or non-motorized watercraft (e.g., canoes and kayaks) may carry sub-limits between $1,000 and $3,000 per item or per category, which is usually too low for carbon-fibre bikes or custom outdoor gear.
Cash and gift cards: The coverage for currency, bank notes, or gift cards is strictly limited, often between $200 and $500, depending on the provider.
These amounts can vary by location and insurer, so always check your specific policy or consult a broker. Some insurance companies may treat precious metals, rare collectibles, or bullion under separate policies rather than the standard home insurance coverage.
Even when the dollar limit appears acceptable, a standard policy does not always cover every type of loss. This presents a second major gap in protection.
Accidental loss or mysterious disappearance
Standard home insurance policies are typically based on named perils, meaning they only cover losses from events specifically listed in the contract — such as fire, theft, or windstorm.
They do not cover the following common situations for valuables:
Accidental dropping or breakage: For example, if you drop a diamond earring down the sink, your policy likely won’t cover the loss.
Mysterious disappearance: This term applies when an item is lost and there’s no clear cause — for instance, misplacing a watch while on holiday.
Damage during maintenance or repair: If an item is damaged while being cleaned or restored, the standard policy won’t cover that damage either.
When comparing home insurance quotes in Ontario, always ask whether coverage includes protection against accidental loss or mysterious disappearance, especially for your most valuable items.
The best way to avoid these gaps is to schedule your high-value items individually under your policy. This is done by adding a specific endorsement, often called a Personal Articles Floater (PAF).
Scheduling an item moves it outside the special limit category and ensures it is insured for its full, verified value. To schedule an item, you usually need to provide documentation such as:
A recent professional appraisal (usually within 3–5 years)
Original purchase receipt, if available
A description and serial number, when applicable
It’s advisable to work with a licensed broker or insurance advisor to ensure all required documentation is in order and the floater is correctly applied.
Key advantages of a Personal Articles Floater
A PAF provides enhanced protection that goes far beyond what the standard home insurance policy offers:
Guaranteed replacement value: Your item is covered for its full appraised value, not just a small sub-limit. This ensures that you receive fair compensation in case of loss, theft, or damage.
All-risk protection: Floaters often cover all types of physical loss or damage, except for a few listed exclusions (such as wear and tear or war). This usually includes accidental loss and mysterious disappearance — which is crucial for jewellery and luxury items.
Low or zero deductible: Many PAFs come with reduced or no deductibles, which means you could make a claim without paying out of pocket first.
Though adding a floater involves a modest premium increase, the cost is small compared to what you would pay to replace high-value items after a loss without sufficient coverage.
That said, even with a floater, some exclusions still apply. Always read your policy’s fine print or consult your broker to understand the full scope of coverage and any exceptions.
Even the most comprehensive home insurance policy in Canada comes with certain exclusions that no insurer will cover without additional endorsements. These generally include:
Common structural and natural peril exclusions
Earthquake and landslide damage: These events fall outside most standard policies and require specific add-ons.
Flooding (overland water): Water entering your home from rivers, rain runoff, or snow melt is not covered unless you add overland water protection.
Sewer backup: Damage caused by a sewage backup usually requires a separate sewer backup endorsement.
Wear and tear / maintenance issues: Losses due to deterioration, mould, rust, or rot are excluded, as they are considered preventable or part of normal upkeep.
Connect with us at Begin Insurance. We believe getting the right protection should be simple and transparent. We work with many of the top Canadian insurance companies to compare and find policies that fit your unique needs. Whether you are looking for home insurance quotes in Ontario or need a dedicated expert to review your current policy's sub-limits, our friendly and trusted brokers will guide you through scheduling your high-value assets and ensure you are covered for accidental loss and mysterious disappearance.
Request a quote today to find the best policy for your property.
Posted Jul 4, 2019