1. Why is Property Insurance Important

2. Types

3. When to Buy

4. Insurance to Value

5. Types of Policies

6. What’s not Covered

7. Special Limits and Limitations

8. Optional Coverage Extensions

9. Umbrella Liability Coverage

10. Guaranteed Replacement Cost

11. Discounts

12. Deductible

13. Working from Home

14. Crime Prevention Tips

15. Tips for Inside your Home

16. Tips for Outside Your Home

17. What Not to Do

18. Going on Vacation
    

Why is Property Insurance Important!

Your home is your haven.  There are few things more valuable in life than our own personal possessions and the space we call home. You’ve worked hard to get them and they are all important to you.   In the case of a fire most people could not afford to rebuild their home and replace their  precious belongings.  Most banks and mortgage lenders require that you purchase coverage in order to secure the loan.  Landlords will often insist that renters carry Tenants Insurance in order to make sure they have liability coverage.

back to top

Types

 Property policies separate losses into various types:  

• Personal Property – This includes most of the normal contents of your home from clothing, pots and pans, furniture, to electronics;
• Real Property – buildings are considered Real Property;
• Liability - your responsibility to other people when they suffer  a property loss or bodily injury due to your negligence. Liability coverage extends to most everyday life situations.

Polices are packaged together to cover the various types of losses.  The main policy forms available include:

• Homeowners forms – for owner occupied houses;
• Condominium forms – for owner occupied condominiums (both high-rises and town homes);
• Tenants Forms – for renters;
• Seasonal Dwelling Forms – for the various types of seasonal occupied buildings;
• Rented dwellings or rented condominiums – for buildings not occupied by their owners.

back to top

When to Buy

Insurance coverage  should begin as soon as you become the legal owner or tenant.  This also includes buildings under construction.  It is important to know how your policy covers your contents when moving from one location to another and to make sure that your old location stays covered until you no longer legally own it or are responsible for it.  It is important to note that most companies do not provide theft coverage for vacant buildings and also require a vacancy permit when a property is vacant for over 30 days.

back to top

 Insurance to Value

Don’t under estimate your contents.  Complete an inventory annually and keep it up to date.  Make sure to include taxes.  Most polices are based on Replacement Cost, which is the replacing of an item with one that is new, and of like kind and quality. Consider taking photographs or a video tape to keep with the list.    An inventory will not only help you to access the total amount of contents you have but it  will also help to prove your loss to your insurer in the event that you have a claim.    The onus is always on you to prove your lost to the insurer.

Building limits should be based on  the buildings estimated rebuilding cost and not it’s market value.    Most home policies usually include Replacement Cost coverage for buildings.  The settlement can be up to, but not greater than, the amount of insurance on the building.  If the replacement cost of the building is underestimated, the policy will not pay more than the cost stated in the policy.   There is an optional coverage called Guaranteed Rebuilding Cost that can change this.  Please see a description of this in the preceding.  

As part of our service we use the RCT Evalurater to help determine rebuilding cost.

back to top

 Types of Policies

There are three common types of policies available for  Personal Property.  They are  Comprehensive,  Broad , and Named Perils.

The “Comprehensive ” policy  covers both the building and contents for all risk that are not specifically excluded in the policy.  This is the best form of protection that can be purchased.

The “Broad ”  policy provides all risk coverage on the building and named perils coverage on the contents.  Although this form is good it is  not as good as the ‘Comprehensive Form”  but it does come at a lower cost.

The "Named Perils" policy is a very basic form and only provides protection for a specific list of coverages as follows:  

• Fire;
• Lighting;
• Smoke;
• Explosion;
• Falling Object;
• Aircraft or Land vehicle Impact;
• Riot & Vandalism;
• Theft;
• Water Damage;
• Wind and Hail.

It is normally the least expensive policy that is available.

back to top

• Flood;
• Freezing damage from outside the house;
• Damage from insects and Rodents;
• Direct Damage from the intentional application of heat;
• Damage from earth movement, snow slides, landslides;
• Intentional Damage.

back to top

 Special Limits and Limitations

Most Personal property policies contain special limits of coverage for a number of items.  These items include:  

• Business Property;
• Jewellery;
• Fur Coats;
• Silverware;
• Cash;
• Negotiable securities;
• Garden tractors;
• Watercraft;
• Computer software;
• Bicycles;
• Coin, stamp and card collections;
• Manuscripts.

If a building has been vacant for over 30 days all coverages ceases unless arrangements have been made with the insurer for a  vacancy permit.   It is important to be aware that even with a vacancy permit coverages are greatly reduced.   If a house has been unoccupied for more than 96 hours during the normal  heating season, frozen pipes will not be covered unless all the  pipes have been drained and water shutoff, or arrangements have been made for a competent person to enter the house daily  to check the heating system.

Property of roomers and boarders are not automatically covered.

back to top

Optional Coverage Extensions

There are a number of additional coverages that you can be added to your policy in order to receive the full protection that you  require.  A partial list of these coverages are:

• Replacement Cost;

• Guaranteed Rebuilding Cost ;

• Jewellery, furs, fine arts, silverware, cameras, bicycles, tools, property in storage, firearms, musical instruments, personal computers, stamp/coin collections, sports equipment, safety deposit boxes, and golf carts;

• Identity Theft;

• Home-based business;

• A parent in a long term care facility;

• Students property;

• Liability extensions for rented land or dwellings, vacant land, incidental office use, swimming pools, draft or saddle animals, elevators, escalators, residence employees, and child care;

• Watercraft including fishing boats, cruising boats, jet skis, etc.;

• Vacation trailers;

• Sewer backup endorsement;

• Earthquake;

• Bylaws Endorsement;

• Loss Rental Income.  

back to top

Umbrella Liability Coverage

The purpose of this coverage is  to provide additional liability protection in the event of a large lawsuit that exceeds the limits of your automobile  or  your homeowners policies.  The cost of this protection may be as low as $120 for a $1million limit.  Limits of up to  $5  million are generally available.  Given today's litigious society where serious claims can easily exceed policy limits this coverage is highly recommended.  This is one of the best disaster protections you can purchase.  

back to top

 Guaranteed Replacement Cost

What is Guaranteed Replacement Cost Coverage on Dwellings?  Your  insurer will guarantee to rebuild your home, even if the cost to rebuild it  is more than the amount of insurance you have purchased.  To obtain this coverage you must  insure your home to its estimated replacement cost,  keep the home updated and notify your company of any changes made to the home which would increase the homes' rebuilding value by $5,000 or more.    The perk of this coverage is that you will never be underinsured.

back to top

Discounts

There are many discounts provided by Insurers.  Make sure you are aware of the discounts offered by your company so that you may maximize your savings.  Some of the more common discounts are:

• New Home Discount - for newer homes that are generally 15  years old or newer;

• No Claims Discount - you have had no claims in the last 3 years;

• Loyalty Discount - you have been with the same company for a number of years;

• Alarm Discount - usually provided for a monitored  burglary and/or fire alarm; 

• Age Discount - provided when the home owner reaches a certain age;

• Multi-Line Discount - provided when you also insure your automobile with the same company;

• No Mortgage Discount;

• No Smokers Discount;

• Seniors Discount.