Homeowners

Limits, deductibles, amount of insurance… what does it all mean? Why don’t insurance companies speak in a language we understand?

We can’t tell you everything there is to know about home insurance in one article, but we can explain a couple of terms to get the conversation rolling with your insurance broker. After all, their job is to help you sort through all the fancy insurance-speak and make sure you are covered.

Deductible refers to the amount you have to pay out of your pocket before your insurance company pays for your claim.

Amount of Insurance refers to the amount your insurance company will pay to replace your “dwelling” (the physical structure of the home and any attached structures such as a garage) and the “contents” or “personal property” (what’s inside your home).

(For Condos, Amount of Insurance refers to your contents and any upgrades or renovations you or the previous owner made to the unit. The Condo building is usually covered by the Condo Corporation’s insurance policy.)

Single Limit refers to the maximum amount of insurance you have available to cover the building (and attached structures), contents, additional living expenses while your home is being repaired, demolition, debris removal, etc.

Replacement Cost refers to the amount the insurance company will pay to cover the cost of replacing your property without deducting for depreciation (the reduction in value because of age/wear).

Did you know that many people are under-insured?

So now that you know the basics, it’s time to put them to use. First, most people know the original cost of their house, but don’t know what it would cost to replace it. Consider that the cost to reconstruct your house will likely cost more than it would to build a new house from scratch (because of the extra care and time needed to ensure that driveways and neighbouring properties are not damaged, building codes may have changed requiring more materials and design, etc.).

Also, if you’re planning to renovate or make any additions, make sure to inform your broker or insurance company to find out if you’ll still be covered. You might need to increase your coverage. Your broker is a great source of information and can help you decide if you have enough insurance.

Second, make a list of the contents of each room of your house noting the value. This can help you figure out if you have enough contents coverage. Also, if you do have a claim the list can help inform your insurance company of the items to be replaced. (Just make sure to store it in a safe place outside your home, like a safety deposit box.)

Finally, don’t wait until you have a claim to find out if you have enough insurance. Some personal items and heirlooms can never be replaced, but for the things that can, talk to your insurance broker and make sure you and your family are covered.

The above article is intended as a guide only. For specific details about your policy or coverage, speak to your insurance representative.

Insurance can be confusing. With so many insurance companies offering different products and services, how do you know what’s right for you?

That’s where your independent insurance broker comes in. Your broker will do the work for you, collecting and explaining the various options available from different insurance companies. They’re your source of information and advice, someone who will look at the whole picture, identify any gaps in your coverage, put together a plan, and review it with you to make sure your insurance is growing with you.

Insurance brokers know about different products and prices, and can help you choose the right match for you. For example, did you know that you can often save money (and time) by combining your home and auto insurance? Your broker can help you build an insurance package that covers your needs, while providing the convenience of having only one payment and renewal date to think about.

Look around your home. Perhaps you run a small business out of your home. Did you know that your home insurance does not cover your business? An insurance broker can help you identify what type of home-based business coverage works best for you.

Consider other aspects of your lifestyle. Do you travel, own a cottage or require additional personal liability coverage (a must if you car-pool or drive your kid’s friends around)?

But insurance isn’t just about buying a policy. Take into consideration the service you expect to receive, especially after a claim. Your insurance broker can advise you on the different levels of service and guarantees provided by different companies. After all, while you hope you’ll never have a claim, you do buy insurance to protect yourself and your family against one.

So if you need information and advice about insurance, go to the professionals – your independent insurance broker. Your broker will work with you every step of the way.

The above article is a guide only.

ING Ins Company’s Travel Well Health Insurance Plan can now be added to your ING Homeowners policy to provide year round Family coverage while travelling out of province or out of Canada. The cost is as little as $7.50 per month. Contact Customer Service for details.