Conventional insurance policies can provide coverage for most — but not all Canadians. Understanding the difference between a traditional policy and one that is designed to cover your unique lifestyle is key to help identify if you're leaving yourself at a greater financial risk.
Conventional insurance options, such as homeowner’s insurance, provide enough coverage for most, but not all Canadians. The majority of affluent Canadians are underinsured and have the wrong type of insurance products to cover their needs. Traditional insurance options are not designed to cover luxury property, assets, or individuals who incur greater financial risk as a result of their lifestyle.
What is Private Insurance?
When your business, professional and private interests grow, so do your risks. Private insurance policies are uniquely designed to address those risks by offering specialized coverage that traditional policies do not. Your specialist will conduct a Personal Risk Assessment to help identify and fill gaps in your coverage for items like vacation properties, collectors’ items, or even your home’s wine cellar or entertainment system.
Why Do You Need Private Insurance?
Unfortunately, most Canadians do not realize they have outgrown their insurance policy until the worst happens. That’s why it’s important to consider the unique assets and risks that you have and how best to protect you and your family.
When Is It Time to Consider Private Insurance?
If any of these scenarios apply to you, then you may need private insurance:
- The replacement cost of your home is greater than $1 million
- You have high-value collections of art, jewelry, wine, and more
- You collect cars or luxury vehicles
- You have boats, ATVs, or snowmobiles
- You volunteer on a not-for-profit board
- You have a need for increased personal liability coverage
- You employ a housekeeper, nanny, dog walker, or personal trainer
- You own a vacation property or other secondary residences
- You own property outside of Canada
- You are a worldwide traveler
Protect Yourself from Liability
For affluent Canadians who have more and do more, protecting your lifestyle is often an afterthought, but even the most common scenarios can put you at risk. For example, if you throw large parties, or often host friends at your vacation property or on your boat, you are taking on the risk that someone could get hurt. Private insurance ensures you have the right protection and adequate limits of insurance to match your wealth, assets, and unique exposures that go hand-in-hand with your lifestyle.
Protect Your Mental Health
Affluent families are not immune from tragic events and the trauma they cause. In fact, break-ins and thefts are more likely when you’re well-off. Private insurance can cover counselling and related expenses for these unfortunate incidents, so you can put the mental health of yourself and your family first.
Protect Your Collectibles
Most traditional policies include a limited amount of coverage for collectibles and special limitations for items like art, wine, jewelry, and furs, but with private insurance it’s possible to insure individual items for their worth and it’s easy to increase coverage. Newly acquired jewelry and other treasures can be covered under private insurance policies even before you have their value assessed. Private insurance can also offer individually tailored coverage and reimbursement options to best protect your valuables, collections, and investments.
Protect Your Property
Luxury home additions, like climate-controlled wine cellars, entertainment, security and smart-home systems, are not covered under typical home insurance policies. Private insurance policies usually cover these luxury systems. They can also offer you funds to upgrade your damaged equipment (like a water heater furnace or air conditioning system) to a newer, more energy-efficient model rather than limiting you to the model you had before.
Protect Your Reputation
Affluent families are more susceptible to lawsuits. Private insurance can offer independent legal consultation and public image consultation to help cover your legal costs and protect your name and/or company brand.
Explore Your Private Insurance Options Today
The best insurance policies address your precise needs and provide the exceptional customer service that you deserve. Explore your options today and ensure you and your family are fully covered.
When you work with RBC Private Insurance, the Risk Assessment Insurance Specialist who guides you through the insurance process is the same person you will reach out to if you ever need to make a claim. They will ensure that your coverage continuously matches your lifestyle and the associated risks by committing to checking in at regular intervals. As a result, they get to know you and your family personally and can offer you a level of customized care and responsiveness that you won’t find elsewhere.
The RBC Private Insurance program is administered by RBC Insurance Agency Ltd. Liability, home, auto, leisure and lifestyle insurance products (except for collector cars and watercraft products) are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. Actual coverage may vary by province. For full terms and conditions, speak with your RBC Risk Assessment Insurance Specialist and refer to the insurance policy wording. As a result of government-run auto insurance plans, RBC Insurance does not offer auto insurance in Manitoba, Saskatchewan, and British Columbia.
Collector car insurance policies are administered by Hagerty Canada LLC and underwritten by Elite Insurance Company, a subsidiary of Aviva Canada Inc. Some coverages are not available in all provinces. Hagerty is a registered trademark of the Hagerty Group, LLC.
Watercraft insurance products for RBC Private Insurance are underwritten by Elite Insurance Company.
TM Trademark(s) of Royal Bank of Canada. Used under license.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.