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Tools & Resources
Frequently Asked Questions
For your convenience, we have assembled the answers to many frequently asked questions. If you are unable to find the answer to your question, please feel free to contact our office and one of our Professional Insurance Advisors will be pleased to assist you. Comments or suggestions on how we can continually improve the content of our website are welcome. Please e-mail us with your comments. HomeAutomobile General Watercraft Financial Services
If my home is under construction, do I still need insurance and should I inform my broker? A home under construction is still subject to loss or damage and there may also be an increased exposure to injury. Speak to your personal insurance advisor regarding appropriate coverage. You will also need to advise your broker if your home is under renovation in order to ensure adequate coverage. If you begin construction or renovations before you notify your broker, you may accidentally void your policy. It is important to speak to a professional insurance advisor before you begin any major changes. You will be asked to supply a list of personal belongings and a record of their value in the event of a loss. Original receipts would be the best way to verify ownership and value. Taking photos is helpful and can speed up the claim process. You may wish to keep a detailed inventory list of all of your personal belongings and be sure to keep the list in another location other than your home. We suggest you take digital photos and save them to a diskette and then store off premises, i.e. safety deposit box.  What do I do if I have a loss?
You should inform your broker or insurance company directly if you have suffered a loss for which you are insured. If the loss was due to burglary, theft or vandalism, the police must also be notified. You will be required to provide information respecting the loss. Reasonable steps should be taken to guard against additional damage and you should not dispose of any damaged items without first speaking with your representative.
Before making a claim, you should always consider the cost of the deductible as compared to the extent of the damage. If the difference is insignificant you may elect not to make a claim as it may affect your “no claim” discount eligibility. Your personal insurance advisor can assist you in making this decision.
If there are other owners of the property, they must be named on the policy. The insurance company will pay only the percentage of loss to each named insured. Example: John Smith and Jane Doe are 50% owners but only John Smith is named on the policy. If Jane Doe is not a spouse, relative or dependent and there is a $100,000 loss, the insurance company will pay $50,000 in total. Jane Doe was not listed as 50% owner and therefore has no insurance protection under the policy. Why should I purchase additional insurance for specific items when my insurance policy covers all of the contents of my house?
Generally, home insurance policies include limits with respect to valuable or unusual items. Such limits apply specifically to jewellery, furs, silverware, boats and certain collector's items.
It is possible to increase the coverage for such items, or to eliminate certain exclusions, by adding coverage specifically for a given item. Basic home insurance policies do not cover additional expenses incurred as a result of an extended power failure, unless the authorities order your area evacuated. Coverage for losses due to sewer backup is available. Some policies include this coverage and also offer the option for additional coverage.
Other policies cover "named perils" on the contents of your home and "all risks" on the building. "All risks" provides insurance for losses due to a wide range of causes. But instead of listing what is covered, an all risks policy lists what is not covered. This is generally referred to as a broad form policy. Then there are other policies that cover "all risks" on both the building and its contents, although these policies are still subject to some exclusions. This is generally referred to as a comprehensive policy. I will be renting out my home for a year and going on sabbatical. What protection does my insurance policy provide for damage that the tenants may cause?
It is recommended that you inform your insurance professional of a lifestyle change of this nature because there will usually be restrictions on your policy for such things as theft or damage by tenants. Your insurance professional can outline these restrictions for you so that you can take appropriate measures.
Many insurance companies offer discounts to policyholders with newer homes, if they have installed safety features like smoke detectors and burglar alarms, and if they have had no claims for a certain period of time. Discounts may also be available by some insurers to non-smokers, homes that are mortgage free and mature applicants. What do I do if I'm in a car accident? When should I call the police? Are the contents in my car covered? Is my vehicle covered if someone else is driving? Are all anti-theft devices treated equally? Why do I have to pay my deductible if I wasn't at fault for the car accident? The policy on my home is on a replacement cost basis. Why isn't my car? What does "wear and tear" mean? What is a "loss of use" endorsement? Is there additional coverage I should consider on my auto policy? What happens to my auto insurance after an accident? Does my car insurance extend to rental cars over seas? Do traffic tickets affect my insurance premiums? My child is getting their licence. Do they need to be added to my policy and how does that affect my premiums? In the event you are involved in a vehicle accident, you should:
Any contents that are permanently attached or whose purpose is for the use and operation of the vehicle will be covered. Any other contents not permanently attached may be covered under your Homeowners Policy.
Note: Should any legal operator of your vehicle be involved in an at fault accident, your insurance premium and rating will be affected. No. There are many different types, styles and qualities of anti-theft devices available. They can range from those that will sound an alarm if someone breaks into your car to those that will render your vehicle inoperable if the proper key is not used. Refer to the Vehicle Information Centre for further information or speak to your professional insurance advisor.
A "Loss of Use" endorsement is insurance protection that will cover the cost of a rental car when your own vehicle is being repaired due to an insured loss. The endorsement will typically have a daily maximum and an overall maximum, i.e. $40 per day with a $1,500 maximum.
No. If your policy has an OPCF#27 – Legal Liability for Damage to Non Owned Automobile endorsement, your policy will extend to protect you in Canada and Continental United States only. You may wish to contact your credit card carrier and confirm what territories and limits your credit card extends to. When over seas, typically you must purchase the insurance protection from the rental Car Company.
My child is getting their licence. Do they need to be added to my policy and how does that affect my premiums?
Once your child has a G1 (1st level) licence, your insurance carrier should be informed. An additional premium is not charged for the G1 level. Typically 8 months after a G1 is completed, the 2nd level licence status (G2) is obtained. Upon completion of G2, a premium is rated and charged. Upon successfully obtaining the final level (G) often times a reduced premium or discount may be applied. Many insurance companies offer different ratings and discounts for children being away at university, good grade discounts and driver training discounts. Please speak with a Professional Insurance Advisor to discuss your options.
What does "replacement" value mean? Why did my premiums increase when I haven’t had a single claim on my policy? A friend of mine claimed more than she lost in a fire. She says the insurance company can afford the exaggeration. Isn’t this fraud? How big is fraud? I have paid premiums for years. I finally now have a claim and the insurance company says I’m not covered. What’s with that? Can I be sued for more than the limit of my liability insurance? What are my options for the payment of premiums? For home insurance, the replacement value guarantee allows you to replace the insured item with a new item of the same kind and quality if that object is destroyed or rendered unusable due to an insured loss. The insurer does not apply any depreciation in this case. As with all policies, there are restrictions and limitations for this coverage to respond. For automobile insurance, the owner of a new vehicle can also take out a Waiver of Depreciation Endorsement. Various options are available in the case of a total loss, ranging from the reimbursement of the initial purchase price to the replacement of the destroyed vehicle with a new vehicle that has the same features. This insurance protection is typically offered in the first two years when a brand new vehicle is purchased or leased. A friend of mine claimed more than she lost in a fire. She says the insurance company can afford the exaggeration. Isn't this fraud?
This was most definitely fraud. What your friend doesn't realize is that she is taking money out of your pocket. One of the factors when calculating basic premiums is the cost of claims that will be paid. That number is based on what was paid before, plus a forecast built in for such things as inflation, natural disasters, fires, thefts, accidents, etc. Every claim that is exaggerated, even if only by a small amount, means that the amount used in calculating next year's premium is that much higher. Smaller claims mean significantly more than one would think. For every large claim, there are easily a thousand smaller ones. If each of those smaller claims was exaggerated by $100, that means $100,000 more was paid in claims than should have been. Following is a short list of fraudulent acts; there are a significant number more:
Excerpted from Insurance Council of Canada 1998 "FACTS"
I have paid premiums for years. I finally now have a claim and the insurance company says I'm not covered. What's with that?
Your insurance company receives a premium from you in return for their promise to pay your claim should certain events happen. However, sometimes exclusions apply and the insurance company doesn't pay for everything. It is important to read your policy carefully and ask your broker or insurance company if there is something that you do not understand. Examples of things that are not covered would include, but not be limited to, wear and tear, damage from nuclear radiation and damage from war or civil unrest. If you require coverage for some of the exclusions listed in your policy, it is advisable that you speak with your broker.
We offer many different payment options (these may vary slightly depending on which insurance company you choose) for you to choose from:
Check with your insurance professional to determine if a service charge from the insurance company applies to any of the payment plans offered. What is the difference between Actual Cash Value and Agreed Value policies? Am I covered no matter what with All-Risk Coverage? What is covered in the hull value of my policy? Does my policy provide for towing? Where can I take my watercraft? It has to do with how the claim is settled after a loss. With actual cash value coverage, depreciation is applied on all claims and the amount you receive is the current market value of the watercraft or damaged equipment. With agreed value coverage, the amount paid following a total loss is the amount shown on the policy. No. While 'all-risk' policies are superior to 'named peril' policies, they do not cover everything. Ensure that you check the exclusions of your policy to know what is not covered. An all risk policy will cover accidental damage (unless it is specifically excluded), but a named perils policy will only cover against damage from specific perils. If your vessel is rendered helpless due to an insured loss and you require assistance to return to harbour, the towing portion of the policy will provide coverage. Most policies contain a deductible for towing. Also check your policy to see if there is a limit for towing. You can take your watercraft to most inland waters within Canada and the United States , not south of 40 degrees north. On the East Coast you are limited to not north of 52 degrees north and not south of 40 degrees north within coastal waters of Canada and the United States. On the West Coast you are limited to the coastal waters of mainland British Columbia and the north and west coasts of Vancouver Island. It is important to check with your professional insurance advisor regarding this, as each insurer may have specific navigational limits. Is my personal insurance coverage adequate? Why do I need a Will? What is a General Power of Attorney? What is a Power of Attorney for Personal Care? What is the "Rule of 72"? How much should I be saving? It is recommended that you have your personal needs assessed by a professional to help determine the coverage you should obtain for material loss, death, disability, illness, etc. In the event of death, a life insurance policy may be essential for providing your dependants with replacement income or paying off your debts, such as a mortgage or inheritance tax. Take the time to consider disability and critical illness coverages, since an inability to work can have serious financial consequences. Also, make sure you have policies that provide adequate coverage for your home, automobile and other personal belongings. If you die intestate (without a Will), your assets will be distributed according to provincial law and perhaps differently than you intended. Your Will should be reviewed about every five years or whenever there is a change in your family circumstances. You should discuss any changes to your Will with your legal advisor. A Power of Attorney for Personal Care is a legal document that assigns responsibility to another person (someone you would trust and often a family member) to represent your wishes regarding your personal care in the event you are ill and unable to make decisions. A simple rule of thumb for estimating how quickly your assets will grow. Take the number 72 and divide it by your rate of return and this will tell you how long it will take to double your assets. If you are earning 8%, your assets will double every 9 years, (72/8). It is recommended that you attempt to save a regular amount of at least 10% of your income each month and use the balance for your expenses. This is known as the "pay yourself first plan". Have this amount regularly transferred to a separate account on a monthly basis.
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