Losing a valuable possession like a diamond ring, a high-end camera, or a luxury bike can be devastating. That’s why some people choose to protect their expensive articles by scheduling them into their home insurance policies. This usually requires you to appraise the item and pay an additional premium based on its value.
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If you lose that item or it is stolen or damaged, you can claim it and the insurer will reimburse you for the loss or repair. But what happens if you lose the item, file a claim, receive your monetary compensation… and happen to find the item a few months later?
- Related Read: Top 5 Home Insurance Myths
You’ve got it back, now what?
First and foremost, you should inform your insurer. Since they’ve paid out the claim, they will ask you to either return the claim money or the item to recoup their loss.
According to a previous study done by InsuranceHotline.com, most Canadians said they would return the payout to their insurer if they found the item, but 25 per cent of Canadians would keep the cash. However, keeping the money after finding the item and not letting your insurer know would be considered insurance fraud and a criminal offence.
Though scheduled items are not subject to your home insurance policy deductible, claims still go under your record and subsequently affect your future premiums. So if you’ve made a claim on an item and happen to find it later, do the right thing by informing your insurer, and the claim should no longer factor into your home insurance rate.