The Hidden Gaps in Home Insurance: What Your Policy Doesn’t Tell You
Many homeowners believe that as long as their home insurance lists a large personal property limit, every item inside their home is protected. What most policies don’t make obvious is that insurers apply separate maximums—called special limits—on certain types of belongings. These caps can reduce a claim dramatically, even when the overall contents limit appears generous.
Why Special Limits Exist
Insurers use special limits to control risk on items that are frequently stolen or costly to replace. While this is standard practice, the amounts differ significantly between companies. Some provide meaningful limits, while others set them at levels too low to cover even basic valuables.
Where Homeowners Get Caught Off Guard
Typical items affected include jewellery, expensive bicycles, high-end tools, and collectibles. A homeowner may have $200,000 in contents coverage, but still receive only $1,000 for a stolen ring or $2,000 for missing tools.
The Real Issue: Variation Between Carriers
Two companies can offer identical overall limits but entirely different special limits. One might provide $10,000 in jewellery coverage, while another offers only $1,500. Without reviewing these details, homeowners can unknowingly select a policy that leaves them exposed.
Tri City Insurance’s Recommendation
Before assuming your contents are fully protected, review your policy or speak with a broker. We’ll break down the special limits in your plan and compare them to other insurers so you can make an informed decision.
