Property Insurance 

Depending on the type of property insurance that you own, there will be different coverage offerings. With that being said, there are 5 main categories of coverage available on property insurance.

1. Liability Coverage
2. Dwelling Coverage
3. Contents Coverage
4. Outbuildings Coverage
5. Additional Coverage Options (Company Specific)

Property liability insurance is a coverage that financially protects you in the event of a lawsuit. This coverage is not involved in protecting your property or the physical structure of the home.

This will cover the damages for bodily harm or property damage that occurs on or off the property. This type of coverage is sometimes referred to as “slip and fall” insurance due to the commonness of that type of claim.

Liability coverage is the foundation of all property insurance policies and will be included on all types of property policies.

Your property liability coverage extends to all the resident members of the household. This includes, but is not necessarily limited to: You, your spouse/significant other, your children, and even your pets (some exclusions for exotic pets).

If your household has a single family consisting of two adults, two children, a cat, and a dog, then all of these members would be covered under your property insurance liability coverage. Temporary guests and tenants would not be covered under the property’s liability coverage and would need their own liability protection.

No, your liability coverage extends outside of the home and virtually everywhere in the world. If you’re on holiday and your child inadvertently knocks over a $500,000 antique vase, your liability protection would cover the cost of a potential lawsuit.

Note: If you’re driving a vehicle, motorcycle, ATV, or other insurable product, you need an insurance policy with specific liability protection for that item. Your property liability coverage is not meant to cover you while using a motorized vehicle. 

Contents coverage is the portion of the policy that protects the personal belongings inside the insured property, such as: Furniture, clothing, electronics, and other items, against covered events like theft, fire, or water damage. It provides reimbursement for repairing or replacing these items if they are damaged, destroyed, or stolen.

Home appliances such as a microwave, refrigerator, stove, etc., are considered a part of your content’s coverage. If you are renting your dwelling out, you will still need contents coverage to cover the cost of the appliances.

Contents coverage does extend outside of the home as well. If you have expensive personal belongings in a vehicle and they are stolen, it is your property insurance that covers the cost to replace them and not your auto insurance.

All insurance providers offer different levels of coverage on certain categories of personal property. Companies have something called "special limits" on items that put a cap on the amount that can be claimed in the event of a loss. Some categories with special limits include:

• Coins
• Jewelry
• Utility trailers
• Musical instruments
• Luggage
• Bicycles
• And more

Talk to your agent or broker about your coverage limits or if you have any unique items/collections that may need additional coverage. You can name items on your insurance that will provide additional coverage for your contents. Naming something on your insurance is known as scheduling. 

Jewelry is one of the most commonly scheduled items on a home insurance policy as the special limit is usually $5,000-$15,000. If you have a collection or specific high value pieces, it is important to ask your broker about scheduling them. 

If you're looking to schedule and item or collection on your property insurance you gain a number of benefits from doing so:

• Broaden coverage to include mysterious disappearance
• Get coverage limits beyond what a standard property insurance policy gives you 
• Pay a lower or even no deductible if you need to make a claim for that item or collection

When you schedule something on your home insurance you will pay a small additional premium on your insurance when you schedule an item. 

Talk to your agent or broker about your options or for more information. 

Outbuildings are other physical structures on your property that aren’t directly attached to your home. This can include, but is not limited to:

• Detached garages/Shops/Sheds (including their contents)
• Pool house/Recreational structures (including their contents)
• Fences
• Decks
• Playgrounds

Outbuilding coverage is usually calculated at a percentage of the estimated replacement cost of the property. It does vary by company, but it will usually be between 8%-15% of the homes replacement cost. Note, that estimated replacement cost refers to the cost it would take reconstruct the home in a total loss, and not the purchase price of the home (land value is not a part of the calculation).

The standard 8%-15% coverage for outbuildings is typically included in your annual premium and does not cost extra. You can get supplemental coverage for outbuildings with only a small premium increase. If you install a new deck, fence, or shed, it’s a good idea to talk to your agent or broker to ensure you have sufficient coverage for your structures and their contents.

Extra protections vary by insurance provider, but some examples include:

• Identity Theft Coverage: For legal fees, lost time, emotional distress, and damage to credit done as the result of a stolen identity.
• Home Systems Coverage: For damage caused to home systems such as heating, cooling, appliances and electronics that are not typically covered under standard property insurance policies. 
• Service Line Coverage: For damage resulting from a leak, break or other damage to a water, sewer, heat, steam, power, or other service line. 
• Even more: Talk to your insurance broker about all of the possible coverages for your property.