Coverage C (contents / personal property) pays for the insured's movable belongings, but with sublimits the insured must understand.
- Special limits of insurance: sublimits cap recovery on specific
categories regardless of the overall contents limit. Typical
categories and approximate Ontario industry limits (verify against
the specific policy):
- Jewellery, watches, gems, limit per loss (theft);
- Cash and bank notes, small dollar cap;
- Securities (stamps, bonds, manuscripts), small cap;
- Bicycles, sports equipment, business property at home;
- Watercraft and trailers, limited unless scheduled separately.
- Scheduled valuables floater (rider): items above the special limits are scheduled at agreed value, often with broader peril coverage (mysterious disappearance) and no deductible. Wedding rings, art, fine jewellery, musical instruments are commonly scheduled.
- Contents off-premises: Coverage C typically extends to the insured's contents anywhere in the world, subject to a limit (often 10% of Coverage C). This is what covers laptops on a trip, students' items at school, items in storage.
- Property used for business: Coverage C contains low sublimits for business property at home and may exclude business property off-premises entirely. Home-based businesses need separate consideration (endorsement or a commercial in-home business policy).
Common mistake: an insured who lost a $15,000 engagement ring in a home burglary expecting to recover the full amount under Coverage C. The jewellery special limit (often $5,000 or less for theft) caps the recovery unless the ring was scheduled. The broker should ask about high-value items at every renewal.
🧠 Memory hook, "Special limits trump policy limits": the overall Coverage C limit is the ceiling, but the special-limit sublimit is what actually pays for a covered jewellery, cash, or securities loss.
Recall: Why are scheduled valuables typically broader than unscheduled? What percentage of Coverage C typically extends off-premises?