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FAQ Property

 

Frequently Asked Questions
 
Property:
 
1. If I have an "all risk" policy, does that mean that "everything" is covered?
- No. An all risk policy has named exclusions. These items are not covered. Refer to your policy wording booklet that came with your policy.
 
2. Are all water damage claims covered by insurance?
- No. Water damage such as seepage or flood is not covered by insurance. Sewer backup may be covered depending on your policy.
 
3. Do I need to inform my broker if I make changes to my home?
-Depending on the renovations, you may need to. If you are adding an addition, a deck, then yes, as it will increase the cost to rebuild your home. If you are changing cabinets, replacing windows, then we do not need to know about it, as it will not change the cost to rebuild your home.
 
4. I go away for the winter, do I need to have someone check my home?
-Yes. It is a requirement for someone to check your home every 72 hours to ensure the property is secure, and that everything is ok.
 
5. My rental property or home is now vacant, what do I do?
-It is extremely important to inform your broker of this. In the event of a claim, and the insurance company is not aware of the property being vacant, then they will deny the claim. 
 
6. I just had my home appraised, and the value of the insurance is higher than the appraised value. 
-Your appraisal is based on current market value, what is it worth today if you were to sell. Your insurance is providing coverage to clean up the site in event of a loss, and to reconstruct the home.
 
7. I just finished paying off my mortgage. Do I need to notify my broker?
-Yes. As the mortgage company is listed on the policy, in the event of a claim, the cheque may be made out to the mortgage company and yourself. Also, if you do not have a mortgage, you may qualify for a mortgage free discount.
 
8. I received my renewal, and the value of my house increased. Why?
-Most policies include "Inflation Protection". Inflation protection increases the amount of your home owner insurance to keep up with inflation so that you can maintain adequate coverage to replace your home in the event of a loss. 
 
9. I received my renewal, and my rates increased even though I did not have a claim.
-Your rates may have increased based on a number of factors. Although you may not have had a claim, many others may have. For example, worst hail storm that hit Calgary and area resulted in 63000 claims and $237 million paid out in damages.
 
For a guide to your home owners policy: Home Insurance Explained