Home & Property Insurance
- How do I make sense of all the different terms insurers use for their policies and make the right choice? Answer
- How do I get home & property insurance when all the insurance companies are turning me down because of two break-ins? Answer
- I run a small business out of my home. Is the equipment I use for it covered by my home insurance? Answer
- Are home computers, printers, modems, and photocopiers covered? Answer
- Is sewage backup covered? Answer
- What are claim settlements based on? Answer
- Can I do the repairs myself? Answer
- Can I choose my repair company and the store where I go to replace the items? Answer
- Do I absolutely have to replace the damaged or stolen goods? Answer
- Do I have to tell my insurance company if I decide not to renew my home & property policy? Answer
- If there's a fire and the damage is greater than my total insured amount, what happens? Answer
- Is my furniture insured during a move? Do I have to tell my insurance company if I move, but store my furniture at my old home for a while? Answer
- How are additional living expenses reimbursed? Answer
- How long do I have to submit a claim? Answer
- If I go on a winter vacation, do I have to take any precautions for my home & property insurance? Answer
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Frequently Asked Questions: Home & Property Insurance
Q - How do I make sense of all the different terms insurers use for their policies and make the right choice?
A - Companies may give their policies different names for marketing reasons, but contracts generally fall into three main categories:
- Some policies only cover "named perils." In other words, if the peril (the cause of damage) is not indicated in the contract, it's not covered. This is generally known as "basic/named perils" coverage.
- Other policies cover named perils for the contents of your home as well as all perils for the building itself. An "all perils" policy covers loss from a wide range of causes but instead of listing the perils, it lists the EXCLUSIONS, or what is NOT COVERED. This is generally known as "broad" coverage.
- Another category of policies covers all perils that could affect the building or its contents, again with certain exclusions. This is known as "comprehensive" coverage.
Q - How do I get home & property insurance when all the insurance companies are turning me down because of two break-ins?
A - There is no government policy or law that obliges an insurer to sell someone a home & property insurance policy, unlike auto insurance, for which civil liability insurance is mandatory.
However, the IBC runs an Insurance Information Centre to help consumers like you find insurance. Although there's no obligation, we are very often able to find insurance for those who call on our services. However, the contract negotiated for you may have a coverage limit, a different deductible, or a higher premium.
First, apply to five insurers. If they all turn you down, fill out the attached home & property insurance application form and return it to us as soon as possible.
Q - I run a small business out of my home. Is the equipment I use for it covered by my home insurance?
A - Books, tools, and equipment used for professional purposes on the insured premises are covered for up to $1,000. However, they are not covered if they are off site, or away from your place of residence.
Q - Are home computers, printers, modems, and photocopiers covered?
A - They are covered if they are for personal use. Software coverage, however, is capped at anywhere from $500 to $1,000.
Q - Is sewage backup covered?
A - Generally, no. But it is available as a rider.
Q - What are claim settlements based on?
A - In home & property insurance, most claims are settled based on replacement value, meaning that the damaged or destroyed article is replaced by a new one as similar as possible to the original in terms of use and quality. Ask your broker or insurer if you have a replacement cost policy. Of course, you have to actually replace the article to receive its replacement cost. Some policies, however, provide only the value of the object on the day of the loss, calculated as the purchase cost minus depreciation.
Q - Can I do the repairs myself?
A - Before doing anything, talk to your insurer or broker. If you have to make emergency repairs, keep your bills and take photos before and after the repairs.
Q - Can I choose my repair company and the store where I go to replace the items?
A - Generally, yes. However, you would be best to discuss it with your insurer before going ahead since policies can vary from one company to the next.
Q - Do I absolutely have to replace the damaged or stolen goods?
A - No. If you don't want to replace them, your insurer will pay you the value of the item on the day of the loss.
Q - Do I have to tell my insurance company if I decide not to renew my home & property policy?
A - Unlike auto insurance, home & property insurance is not automatically renewed. It expires on the date set out in the policy unless you or your insurer provides notice to the contrary. However, it's always best to tell your insurer if you're not renewing your policy.
A word to the wise: Take note of your policy expiry date so you have the time to review the policy and get the renewal conditions you want (coverage, deductible, premium).
Q - If there's a fire and the damage is greater than my total insured amount, what happens?
A - You will have to assume any excess expenses. Your insurer will only cover you for the amount indicated in your policy. For example, if your tenant's insurance is for $15,000, but $20,000 worth of property is destroyed, you'll have to pay the $5,000 difference. That's why it's so important to keep your inventory up-to-date and increase your insured amount as required.
Q - Is my furniture insured during a move? Do I have to tell my insurance company if I move but store my furniture at my old home for a while?
A - It's very important that you inform your insurer of any change of address and the date of your move, and, of course, make sure your property is insured at both locations. Most policies give you 30 days to complete a move, assuming, of course, that your policy remains in effect and that you'll be keeping the same insurer at your new address. Your property is also insured when being transported, or during the move itself.
Q - How are additional living expenses reimbursed?
A - As with any other claim, you have to provide proof of the additional expenses you incurred after a loss. Remember, this means costs you've incurred above and beyond your regular living expenses because of the loss. You must have complete paperwork on your rent or mortgage as well as receipts from the hotels where you stayed, restaurants where you ate, and cleaners that you used to take care of your property.
Q - How long do I have to submit a claim?
A - All insurance policies, whether home & property or automotive, state that you must report any losses affecting your policy as soon as you are aware of them. Failure to do so may invalidate your claim.
Q - If I go on a winter vacation, do I have to take any precautions for my home & property insurance?
A - If you're planning to be gone for four or more days during the winter, ask someone you trust to check on your heating system. Or, you can drain all your pipes and turn off the water. Otherwise, if your pipes burst, you may not be covered.