Articles

Insurance policies for homeowners or residents of apartments or condominiums are designed to cover two main areas of possible loss.

Additional Buildings - Outbuildings

Contents – Personal Property             

Loss of Use of Your Dwelling

Liability          Will pay all sums which you become legally obligated to pay as compensatory damages because of unintentional bodily injury or property damage arising out of your personal actions anywhere in the world OR your ownership, use or occupancy of the premises defined

                        Voluntary Medical Payments &Voluntary Property Damage

PERSONAL PROPERTY

Coverage for contents on an all risk homeowner’s or tenant’s package covers a wide range of things.  Below is a list of some things we thought would be of most interest.  The limits of coverage vary from company to company – and we have just provided an example from one of our companies.

·          The contents of your unit or dwelling and other personal property you own, wear or use while on your premises which is usual to the ownership or maintenance of a dwelling.

·          Personal property while it is temporarily away from your premises, anywhere in the world.

·          Personal property stored in a warehouse up to 30 days.

·          Up to $5,000 (7,500*) in all for loss of or damage to personal property of your parents, siblings or children who reside in a nursing home or retirement facility, provided that not more than two rooms are occupied by such person(s).

·          Theft of insured property from within any bank, trust or safe deposit company or occupied dwelling … in which the property has been placed for safekeeping.

·          Coverage for wheelchairs or scooters having more than two wheels and specifically designed for the carriage of a person who has a physical disability.

·          Limitation on securities up to $5,000 ($6,000*) in all, and on money, cash cards or bullion up to $300 ($500*) in all.

·          Limitation on loss other than caused by a specified peril (NOT covered for more than these limits for theft): jewellery, watches, furs up to $3,000*; coin collections up to $500*; stamp collections up to $1,500*.

·          Your personal property while in transit to and at another location within Canada which is to be occupied by you as your principal residence.

·          Will pay for your legal obligation under Canadian Law because of the unauthorized use by any person other than an insured of credit cards issued to you or registered in your name provided you have complied with all the conditions under which the card was issued

·          Will pay for loss caused by theft of debit or automated teller cards issued to you or registered in your name provided you have complied with all the conditions under which the card was issued.

 LIABILITY

 The risk of being sued as a result of our actions is something that is becoming a greater concern in our society.  The increase in law suits for a variety of things has been driving up legal fees and insurance rates for some time now. 

 Most often, a suit against an individual will come against an automobile policy … and these are the ones that come to mind most often.  Things like long term care required after a bad vehicle accident, or loss of quality of life from something as “everyday” as whiplash after a fender bender, are major expenses to be borne by the responsible person.

Types of claims that fall under a homeowners or tenant policy can cover anything arising from your personal actions anywhere in the world.   This could range from accidental injury caused to someone ahead of you on the golf course when they are hit in the head by your golf ball, to rehabilitation for accidental shooting on a hunting trip, to someone accidentally setting a hotel room or friend’s home on fire while visiting.  Anything that happens where someone else is hurt or their property is damaged could make you subject to a law suit.

Insurance companies take over the investigation and settlement of this liability exposure.  Many times the investigation itself can save you thousands in legal fees.  The coverage under most insurance policies is $1,000,000 …and the cost of the investigation is in addition to this limit.

For most companies, the minimum policy available for a tenant’s package is $25,000 - $30,000 contents.  Because of the demand for policies with lower limits for Seniors, many companies have now come up with special rates.  Most also have a discount for residents of a Senior Citizen Homes, Senior Care Complex, or Nursing Home

 These packages includes replacement cost coverage on contents, and is a Comprehensive policy wording.

Comprehensive coverage is the best – and is structured in a way that you are covered for All Risk of damage, subject to some exclusions.  The exclusions are very straightforward and are things such as nuclear incident, war, business materials, rot, mold, mildew, vermin, certain water damage, wear and tear, mechanical breakdown or the cost of making good faulty workmanship.

Please call if you have any questions.  We would be happy to help you decide what your best options are.