Frequently Asked Questions
- Are there risks or hazards for which I cannot buy insurance?
No policy covers everything that could go wrong, because premiums for an “all-inclusive” policy would be impractically high. Insurance is intended for unforeseeable events. “Wear-and-tear”, for example, cannot be insured against. Most losses that result from terrorism are also not covered. Ask your insurance representative to explain further.
- Do I need to have home insurance?
Yes. Most financial institutions will insist that you purchase coverage, and will ask for proof of insurance before lending you money to buy a home. If you are renting, your landlord will likely require that you have a certain amount of liability insurance, to pay for any damage you may cause to the property. Never risk financial loss due to a claim which could have been protected.
- How can I reduce my premium?
Insurance companies offer a variety of discounts to reduce your premium, if you qualify for the discounts. To name a few, premium discounts include:
-Claims free discount for clients having no claims under their policy for 3+ years
-Mature age discount & Newer home discount
-Burglar/Fire Alarm discount
-Mortgage free discount
- How long do I have to report a claim?
You have 2 years from the date of loss to report the claim.
- What do I have to do when I go on holidays during the winter?
Your policy states: We do not insure loss or damage caused by freezing of any part of a plumbing, heating or sprinkler system or air conditioning system or domestic appliance unless within a portion of your dwelling heated during the usual heating season, if you have been away from your premises for more than 4 consecutive days. However, if you have arranged to have a competent person enter your dwelling daily to ensure that heating was being maintained or if you have shut off the water supply and had drained all the pipes and appliances you would still be insured.
- What is my deductible and how does it affect my premium?
The higher the deductible (the portion of a claim that you have to pay out of your own pocket) the lower the premium. Compare premiums for policies that have higher versus lower deductibles, then decide whether a lower premium is worth the higher amount you would have to pay out of pocket if you made a claim.
- What is the difference between a broad form and comprehensive residential insurance policy?
A broad form policy offers comprehensive (all risks) coverage on your building and basic coverage (named perils) on your personal belongings. A comprehensive policy offers comprehensive coverage on both building and personal belongings.
- When do I lose my claims free discount?
The claims free discount is lost after your first claim. You must then remain claims free for a period of 3 years before you re-qualify.
- Will my homeowner’s policy cover my home-based business?
It depends. The limits on a homeowner’s policy may not be high enough to cover all of the equipment you use for your business. Because typical homeowner’s policies have a limit of $2,000 for business losses, you may not be able to replace your computer, fax machine, scanner or digital camera, for instance. It may be worthwhile to pay for additional coverage now, to ensure you can replace everything you might lose later.