Q. My car was broken into while I was shopping at the mall. A brand new golf bag and a leather briefcase I had just purchased for my husband were stolen from the trunk. Do I claim these items through my automobile or homeowners insurance policy?
A. Your home insurance will cover items stolen from you car that are not permanent fixtures of your car, as long as you have receipts to prove ownership of those items.

Q. Is my house covered while I am on vacation?
A. As long as you plan to return, your house is covered. In most cases, if you are away more than four consecutive days during the heating season, there is no coverage for damage caused by freezing of any part of a plumbing or heating or domestic water container unless you had arranged for a competent person to enter the dwelling on a daily basis. Ask your insurance broker to be sure.

Q. My son is going away to college next fall. Is he still covered under our homeowners insurance?
A. Most likely he will be covered, as long as he is a dependent and is temporarily living outside your house. Speak to us to find out what the limit of insurance is on any personal property he will take with him.

Q. How can I assist my broker in determining a realistic insurance valuation for my home?
A. Bring as much information as you can about your home: its size, construction materials and special features it may have.        [ top ]

Q. My home is brand new so I know what it cost to build. The insurance valuation provided by my broker was higher. Why is that?
A. Reconstruction costs are higher than original construction costs because damaged buildings may need to be demolished and the debris removed. These and other costs are included in the building coverage.

Q. Have my homeowners’ insurance rates gone up to pay for the forest fire losses of the summer of 2003?
A. No. While those losses were substantial ($200 million), recovery of those losses was not a major factor in determining insurance rates for 2004.

Q. How do the new insurance valuation methods affect the coverage of my furniture and other belongings?
A. When the insurance valuation on your home is recalculated, it may increase the building insurance limit. However, your policy has other limits you should consider with the assistance of your insurance broker. Items such as fine art, antiques, collections, recreation equipment and other belongings may exceed specific limits on the policy and should be scheduled separately.

Q. I plan to renovate this year. How will this affect my insurance?
A. Advise your insurance broker of any significant changes to your home or contents, or who is living in the home. Guaranteed replacement cost terms vary from policy to policy. If you have any questions, check with your broker.

Q. Why are insurance valuations on homes increasing?        [ top ]
A. Most comprehensive homeowners' policies guarantee the replacement of your home and contents in the event of a loss. In order to provide that guarantee, the value of your home must be determined at the time the policy is purchased, and the policy must adequately cover your home to that value.

Insurance brokers perform that valuation for insurance purposes. It's one of the many services a broker provides at no extra charge to you. An insurance valuation is different from an appraised value or market value because it is based on what it would cost to replace your home, and it doesn't include the value of the land. Though insurance brokers work with their customers to determine a valuation for insurance purposes, a broker is not an appraiser. In some cases the advice and services of an appraiser should be sought.

Prior to January 2003, most brokers used a valuation method, based on per-square-foot assumptions for various grades of homes, which had been standard practice for many years.This system was subjective in many ways, and provided customers and brokers some leeway in settling on a valuation figure for the home. Like so many other areas of our lives, new technology has changed the process brokers use for home valuation. New construction valuators have evolved. They are more detailed and more accurate in determining the home construction value based on the quality of materials and unique characteristics and location of the home.Much of the subjectivity has been removed.

"Part of our job is to determine the estimated Replacement Cost of your home or property to ensureadequate coverage."

During 2003, it became apparent that the valuations obtained from these new valuation tools were higher than those obtained with the previous system. Some homeowners questioned these higher valuations,and the insurance industry was re-examining the valuation issue when the devastating forest fires of the summer of 2003 struck in British Columbia. The actual replacement costs of these homes have provided definitive proof for the need of a new valuation system.

To bring insured values more into line with replacement costs, many insurance companies are requiring brokers to complete new valuations on renewal of homeowners' policies. During 2003, it became apparent that the valuations obtained from these new valuation tools were higher than those obtained with the previous system. Some homeowners questioned these higher valuations, and the insurance industry was re-examining the valuation issue when the devastating forest fires of the summer of 2003 struck in British Columbia. The actual replacement costs of these homes have provided definitive proof for the need of a new valuation system. To bring insured values more into line with replacement costs, many insurance companies are requiring brokers to complete new valuations on renewal of homeowners' policies.        [ top ]

Q. While on vacation in Florida, I rented a boat to go fishing. I accidentally caused a fire which damaged the boat and injured others trying to help. Am I covered?
A. Yes. Your personal liability coverage protects you when you are legally responsible for bodily injury or property damage to someone else.

Q. I left my apartment to go shopping, unaware that the water was still running in the kitchen. Upon my return my landlord said I was responsible for the damage to the apartment below and asked if I had insurance. Am I covered?
A. The liability coverage of your Tenant policy would pay for the cleanup costs, debris removal and damages to the building, and for the damaged property belonging to your neighbour.

Q. I bought a digital camera while I was on vacation overseas last month. I forgot to declare it at Customs when I returned. It was stolen. Am I covered for this loss?
A. No, this loss is not covered. Any items illegally kept or acquired, or not declared at Customs, are not covered by any policy.

Q. If my apartment was damaged by fire, restoration could take weeks. How will my policy respond?
A. Your policy does include coverage for temporary accommodations like a motel room and any other increased living expenses.Your broker will advise you of the claims process and work with the insurer to get your life back to normal as quickly as possible.         [ top ]

Q. Is my all terrain vehicle (ATV) covered by my Home-owners policy?
A. No, ATVs are excluded from Home-owners policies. You must buy an Auto policy for them. You can be charged by the police for driving with no insurance by merely crossing the road on one.

Q. What's the difference between vacant property and unoccupied property?
A. Property is deemed to be vacant when the occupants have moved with no intention of returning regardless whether they left personal property behind. Insurance will not cover vacant property. Property is deemed unoccupied when there is an intention to return to it. Insurance will cover it.

Q. Why do companies want to inspect my home?
A. Inspections are made to ensure there are no fire or liability hazards. Inspectors pay specific attention to roofs, plumbing, wiring, and whether there is a wood stove on the premises.

Q. Why is my oil tank causing problems for insurance?
A. Your oil tank isn't causing problems for insurance; but one day it might cause problems for the environment. The cost of oil spill clean up from leaking or bursting home oil tanks has risen dramatically in recent years. The average cost is now about $65,000 with many clean-ups costing in excess of $100,000. And, remember, your insurance might not pay for the cost of a spill on your property, only the neighboring property. In the absence of tough provincial legislation requiring oil tank inspection and replacement, it is up to you to inspect your tank regularly for leaks and to replace it in a timely manner. Call your home oil company to find out how to inspect your tank properly. And always call your broker to find out exactly what your policy covers.

Q. My home is assessed at $70,000. Why do I have to insure it for more?
A. Your home assessment is for tax purposes and it roughly equates to the value of your home if you sold it on the open market. For insurance purposes, you have to ensure it up to its replacement value which is the cost of having to rebuild it at today's prices for building materials and labour. This is almost always more.         [ top ]