VIP insurance for your luxury items

From the Riopelle painting to the Pétrus bottle, passing through the collection of jewelry, porcelain or watches, all luxury items have something in common: insurance. But how to choose it?

“So far I have secured works of art, wine cellars, jewelry, sports memorabilia collections, books, porcelain, Fabergé eggs and even a coffee table made from gold bullion, worth several hundred thousand dollars,” says Daniel Coyle , regional. director for Quebec of the Gold Guarantee division of La Garantie.

If gold tables are quite rare, luxurious residences, that is, valued at more than a million dollars, are more numerous. It is from this threshold that the division led by Daniel Coyle begins to offer the so-called VIP insurance, and it is within them that a large part of the luxury items are insured.

Table of the day or a la carte?

Luxury property insurance generally comes in “coverage” or “specific” form, meaning it covers the residence and a group of properties, or conversely a single property. For example, La Garantie offers two “coverage” insurance formulas. The comprehensive plan offers complete protection equivalent to 210% of the value of the residence. It protects the latter, but also the assets it contains, the replacement costs if it is necessary to rebuild, the rental of a similar home during the works, etc. The insured who does not wish to rebuild, for example after a fire that destroyed the home, can choose to receive the insurance amount. The other formula is called “a la carte”. The insured then separately chooses the insurance elements that she wishes to pay for.

“But in certain cases it is preferable to insure a luxury property separately, with specific insurance, especially when the value of the property is less than the home insurance deductible, to be sure of being reimbursed in case of theft or loss” , explains Daniel Coyle. This is especially the case with items such as jewelry, paintings or wine bottles. You should know that the home insurance deductible will vary between $1,000 and $1,000,000, depending on the risk that the insured wishes to assume. In contrast, there is no deductible for a specifically insured item.

The premium follows the risk.

“Taking into account the amounts involved, insurance companies may impose certain security requirements or vary premiums up or down depending on the use made of luxury goods,” warns Julie Line Paquette, a broker. Property Insurance and Lussier Dale Parizeau VIP/Special Projects Director. .

Most luxury residences have alarm systems with cellular link. But insurers increasingly value water detectors, accompanied by a water shut-off in case of a problem, or even low temperature detectors (which can cause pipes to freeze). Water damage continues to be the cause of the majority of claims insurers face. La Garantie will even launch a program in the coming weeks in which they will pay for the installation of a water shut-off valve for certain policyholders, a first in the world of VIP insurance in Quebec.

“In the case of jewelry, for example, the premium will be lower if it is deposited in a bank safe, will increase slightly if it is kept in a safe at home, and will increase even more if it is worn frequently,” Julie illustrates. Line Package. . The premium is largely proportional to the risk. »

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