87% of BC residents pay for home insurance they don’t need

Nearly 90% of BC home insurance policyholders are paying for insurance protection they don’t need or want, according to Square One Insurance. Out of 1,000 policyholders, 87% are paying for irrelevant protection with traditional home insurance policies.

“Most home insurance policies were designed in the 1970s, meaning they provide too much coverage for fine china, silverware and furs, but not enough for computers, cameras and cell phones,” says Daniel Mirkovic, president & CEO, Square One Insurance. “What this means is that if there was a loss, many policyholders wouldn’t be adequately covered for some of their most prized possessions.”

One of the most notable findings is that 87% of house owners with a traditional policy are paying for significantly more personal property coverage than is actually needed, and 67% are paying for detached garages they don’t have.

Other notable findings include:

• Only 13% of policyholders needed/wanted protection for china, silverware and furs
• Only 14% needed/wanted coverage for fine arts
• 8% needed/wanted coverage for collectibles

Traditional home insurance policies cannot be truly customized to individual needs. Coverage, such as the above, is automatically included, whereas important coverage, like earthquake insurance, is not.

“Traditional home insurance providers don’t take into account the unique needs of policyholders living in metropolitan cities,” adds Mirkovic. “With real estate prices as high as they are, many of us are ‘house poor’ and simply don’t need all the coverage for personal property automatically included in traditional home insurance policies.”

This story was originally published by Canadian Insurance Top Broker.