Special Home & Auto Insurance Considerations for Dentists

For many people, obtaining appropriate home and auto insurance coverage is an open-and-closed case. But for some dentists, a little bit of sleuthing may be needed to ensure that some additional risks are being mitigated. Here are a few examples of some special considerations dentists should be aware of when insuring their properties and vehicles.

Considerations for Collectors

If your home contains valuable collectibles like works of art, antiques (or other types of valuables, such as jewellery), it's important to ensure that your home insurance will provide sufficient compensation if these items are lost (in a fire, for example).

Don't assume that a standard home policy will provide adequate protection for these types of items. In fact, most home insurance policies impose very specific limits on the amount of compensation that can be paid in the event such items are lost. Therefore, consider purchasing additional coverage for these types of objects, in the form of an endorsement or "rider" to your homeowner's policy.

Considerations for Those Who Drive Higher-End Vehicles

You might assume that an economy car is always less expensive to insure than a higher-end vehicle. In fact, that isn't necessarily true. The premium charged for auto insurance is based on the price of the car, but many other factors are taken into consideration—such as the vehicle's repair costs, the model's theft frequency and the driver's claims history. When these factors are combined, a cheaper car could cost more to insure than a luxury model.

However, if you're planning to acquire a new, higher-end vehicle, it's particularly important to consider obtaining a "depreciation rider" with your auto insurance. Doing so could save you a lot of money. Here's why:

Suppose your vehicle is lost (in an accident or if it was stolen). Without having the depreciation rider, the insurer would provide you with a cash value benefit, which is the value of your car, minus depreciation (and minus any applicable deductible). If your vehicle is of the higher-end variety, the amount of depreciation could be many thousands of dollars more than that of an economy model.

Considerations for Cottage Owners

As with home or office policies, the contents portion of your cottage insurance provides coverage up to a specified limit. However, that coverage limit may be inadequate if you have added or upgraded items within your cottage. For example, if you've outfitted your cottage with a satellite dish, new electronic devices or furniture, you should arrange for a contents coverage review with your insurance representative. You should also advise your insurance representative if you have watercraft (whether permanently at the cottage or not) as most policies also have a coverage limit for loss or damage to the watercraft and a horsepower limit for watercraft liability. You may need to obtain a watercraft "rider" to ensure it is adequately covered.

The liability coverage you have through your cottage insurance extends to the watercraft you own. However, coverage exclusions may apply depending on the boat and its use. Again, it's advisable to check with your insurance advisor to determine if you're adequately covered. (Note: RVs are insured under auto policies. Don't assume they are insured under your vacation property coverage.)

Also, be aware that some vacation property insurance policies provide a limited amount of coverage for detached structures on cottage properties, such as boathouses, garages and sheds. It's wise to consult with your insurance representative to ensure these types of structures are fully protected.

THE AUTHOR

Ms. Whiteman is a professional insurance advisor at CDSPI Advisory Services Inc.

Email: insurance@cdspiadvice.com