Q. What does this mean?

A. It means you have an obligation to advise your Insurance Broker of any driver(s) that have regular or frequent use of your vehicle when completing an application and/or if usage changes after you have completed the application.

Q. What will happen if I do not disclose a driver either on the application or thereafter?

A. It means, claims under your policy, with the exception of certain Accident Benefits, may be denied and your policy may be cancelled. For example, if there is someone living in your household who is a licensed driver, but not listed, and they are involved in an accident while driving a vehicle named on your policy, the claim could be denied and the policy cancelled.

Q. How do I know if I am required to list a driver or not list a driver?

A. The best advice is to describe the situation to your Insurance Broker and they will help you make that determination.

Here are some more helpful tips…

Drivers who should be listed/named on your automobile policy:

• Any and all licensed drivers living in your household.
• The actual owner of the vehicle (may not be the registered owner). For example, a grandparent who bought a vehicle and is the actual owner but ‘gifted’ the vehicle to someone living in the household.
• The registered owner of the vehicle.
• A person with regular and/or frequent use of the vehicle, such as driving to school several times/week.
• A person using your car as a part of a car pooling arrangement.
• A car insured on your policy but is garaged elsewhere with another driver; this driver must also be named on your policy.

Drivers who are not required to be listed on your automobile policy:

• A friend or neighbour who you give permission to borrow your vehicle.
• A short term visitor in your home who you loan the vehicle to on one or two occasions during their visit.

Remember that if you loan your vehicle out:

• You must provide consent to loan your car to another driver.
• The driver must be authorized by law to drive your vehicle.
• If the driver has an accident while driving your car, the incident goes on your insurance record.
• When you lend your car, you are also lending your driving record.
• The person borrowing your car cannot be using it as part of a routine i.e. every Friday for groceries.

1. Suggest a credit check

If you’ve been a responsible borrower, offer permission for your insurance company to check your credit rating. Insurers believe people who manage their credit well are less likely to burn them with a big claim. One reader reported that allowing a credit check helped cut her mother’s insurance bill by several hundred dollars.

2. Online quotes

I tried a couple of sites and wasn’t impressed at the way they seemed to be designed to generate sales leads for insurers rather than give homeowners a broad survey of the costs and options available. Still, worth a try. Just Google “home insurance quotes.”

3. Raise your deductible

David Browne, president of insurance brokers Martin Merry & Reid Ltd., said this is a very effective way to reduce premiums. People typically think of deductibles of $500 or $1,000, but Mr. Browne said there’s value to be had in going as high as $2,500. Of course, higher deductibles mean you pay more out of pocket when making a claim.

4. Bring over your car insurance

Insurers are quick to suggest this because it means more business for them. In fact, you may be able to save 10 per cent on your home insurance premium if you combine car insurance with the same group covering your house. Pay close attention to the cost and terms of your car coverage if you give it to your home insurer – I looked into this recently and found the good quote I got for our cars was tied to a higher deductible than I wanted.

5. Get an alarm system

If you’ve been considering an alarm system on its own merits, the discount you’ll get on your home insurance may help decide things. We had an alarm installed after a break-in years ago and it has generated a discount in the area of $100 per year on our coverage. Insurers are only interested in monitored alarm systems.

6. Pay annually

There may be extra administrative charges if you pay monthly. To ensure you have the money to pay your premium bill all at once, set up an online savings account and transfer in one-12th of your premium every month.

7. Do a careful check of what you own to ensure you’re not over-covered

Documenting what you own by keeping receipts and noting model and serial numbers is important to make sure your insurance company replaces exactly what you owned and not a cheaper substitute. Another benefit of knowing what you own is that you may discover you have more coverage than you need for your possessions and thus can get by with a lower amount of coverage that can lower your premiums.

An example of a company that tailors coverage to your actual possessions is Square One Insurance, which does business in British Columbia, Alberta and Saskatchewan, and plans to expand into Manitoba and Ontario.

8. Think twice before making a claim

The claims-free discount on home insurance policies can be significant. Looking at a renewal form from an insurer we dumped two years ago, our claims-free discount was quoted at $252.

9. Move down from comprehensive to broad or basic coverage …

There are three levels of home insurance coverage: basic, also sometimes called a fire policy, the mid-range broad policy and the top-of-the-line comprehensive policy. Most people go with comprehensive coverage, and you’ll find that online quote providers typically default to this type of policy. But Mr. Browne said fire is your main risk. “You can live through a sewer backup, you can live through a theft, you can live through a leaky roof,” he said. “But it’s hard to recover from a fire.”

10. … But don’t cancel your coverage entirely

You’ll need insurance to get a mortgage, but it’s optional for those who own their homes outright. Mr. Browne calls the idea of going without insurance “totally reckless,” and not just because of the risk of fire or water damage. Home insurance also covers you for liability if someone is injured on your property.

One final note: If you let your coverage lapse and then try to start it up again, your premiums may soar well above your old rate.

———-

Your Personal Home Inventory

Cataloguing what you own can help ensure you’re not paying for insurance coverage you don’t need, and it can also prevent you from being underinsured. A personal home inventory can also provide the verification required by your insurer before replacing high-end items lost in a fire, flood or break-in.

One way to document what you own is make a video of your possessions. Another is to use a free smartphone app called Encircle (encircleapp.com). With Encircle, you create an image of what you own and add the model and serial number. As an added service, Encircle registers your possessions with the manufacturer and links you with manuals and recall notices. Encircle also works with a digital camera and computer.

ROB CARRICK

The Globe and Mail

Published Monday, Apr. 22 2013, 8:23 PM EDT

View original article here

Stats show that 10% of Canadian homes use furnace oil for heat. This is higher In Prince Edward Island where 85% of households heat with oil. The Insurance bureau of Canada (IBC) confirms $78.5 million was paid out on oil tanks spills from 2008 to 2011. Unlike windstorm losses, many of these losses could have been prevented. It is the overall goal of the insurance companies to work with policy holders to help reduce claims from environmental losses.

Depending on your insurer’s offerings, there are numerous discounts that can be applied. It is always important to ask your broker to review all the discounts available to you.

It is important to know the insurers don’t set the standards for oil tanks. These standards are set by the Underwriters Laboratories of Canada (ULC) which tests and certify products. Often the
insurance industry finds that standards do not go far enough. Insurers can enforce by requesting replacement of equipment or equipment to be brought above minimum standards to reduce the exposure.

So why are oil tanks failing in the first place when many have been replaced in the last 10 to 12 years?

The main causes of oil tank failure are:

• 45% corrosion (28% outside tanks and 17% inside tanks)
• Piping 29% (outside pipes 19% and inside pipes 10%)
• Over Fill 11%
• Other 15% (New installations 5%, vandalism 2%, misc. 8%)

How do tanks rot or corrode?

Tanks designed with a side discharge valve and located outdoors, or even in damp environments (i.e. basements) can rapidly trap moisture in the bottom of the tank due condensation. Moisture in fuel oil tanks initiates a deterioration process called MIC (Microbial Influenced Corrosion). If you remove or eliminate moisture/water you stop the MIC process. This is one of the reasons why side
discharge 14 gauge tanks need to be replaced.

Whose responsibility is it to look after the oil tank? CSA standards state the owner of the oil-burning equipment shall ensure that it is adequately maintained at least once per year. All maintenance to a heating system shall be performed by a licensed OBT (Oil Burning Technician).

What is the Fuel Distributor’s or supplier’s role in preventing oil spills? Fuel distributors can only supply fuel to a certified fuel tank. They must inspect prior to supplying oil to a new client or new
installation. Also, existing clients must have a comprehensive inspection every ten years. Finally, an external inspection of tank and lines must be completed every five years.

What tanks should people be using?

As of December 2008, all single wall oil tanks must be a minimum of 12 gauge or 2.5 mm in thickness. They can only exceed 14 gauge or 2.0 mm if they are double walled tanks. Some provinces are moving towards making people heat with non-metallic and non-corrosive tanks with bottom or top discharge valves.

Here are five quick tips to help prevent oil spills.

1. You should have an annual service contract with an Oil Burning Technician to prevent malfunctions or leaks.
2. Oil tanks should be installed on a solid one-piece, non-combustible base to eliminate tip over or movement.
3. All oil filters should be heavy body, ULC approved, and located in the heated section of the building to eliminate freezing and splitting of the lines.
4. Outside fuel lines and valves must be adequately protected from any impact of falling debris i.e. ice and snow load.
5. 14 gauge or 2.0mm tanks or less need be replaced in the near future to eliminate your exposure to oil spills.
   

As parents, it is our responsibility to protect our children especially when they leave for school. As the ties that bind become undone – or do they?

As a homeowner, you can still protect your children through your insurance. Children attending university or college put enough financial strain on a family. You don’t need the extra burden of worrying about what you will do if something happens to them or their belongings while they are away. Ask your broker to explain your options to you. There are various types of coverages
available. Some homeowners’ policies extend contents coverage to “students away from home”.

The first thing you need to do is determine the amount of coverage you will require to have your “student” protected. Keep in mind that when considering insurance coverage you must always think in
WORSE CASE SCENARIOS. Make an inventory of all the personal property they are taking with them from underwear to computer equipment, and then determine the current replacement value of these items. Now you have calculated the LIMIT of insurance that you will require.

Your next step is to ask your broker to find out what your current homeowners policy covers for personal property protection for your student.

The next question is to make sure that your current insurer will also extend your liability protection to cover any legal liability issues that could arise while your child is away from home. Some examples include potentially causing a fire or accidentally causing bodily injury to another person.

Remember that incidents like these may not necessarily be their fault, but you may have to retain legal counsel to act on your behalf.

If your current insurer does not offer coverage for students away from home, you may need to ask your broker to provide you with a “tenants package policy” to provide this protection for you.

This could be a challenge depending on whether your child is in residence or is renting an apartment or sharing space in a home. Whatever the case, your broker should be able to secure coverage for you. One other thing to remember is that if your child is an occasional operator on your vehicle, depending on how far away they are, you may qualify for a discount on their portion of your premium as they won’t be driving your car as much.

Our children are priceless – we need to keep them protected even when we are not with them. Let your broker provide you with the peace of mind you need.

• Upgrades to your roof, plumbing, wiring and heating
• Installation of a sump pump and/or back-water valve
• Being mortgage free
• Installing an alarm system
• Being a non-smoker

There are even some companies that provide discounts when completing a new evaluation of your home.

Over the years the calculation tools used to determine the rebuilding cost of your dwelling have been refined. This enables insurance companies to properly insure your residence in case of a loss and to make sure you get back all that you are entitled to. While many homeowners, condominium owners and
secondary homeowner policies provide you with guaranteed replacement cost, there is the possibility that the guaranteed replacement cost endorsement could be null and void if you have not recently completed an updated rebuilding evaluation. Be sure to call your broker for more details on how the guaranteed replacement cost endorsement applies. There are always pros and cons in making the decision to take a look at how much you should be insured for. Ask yourself, “How important is it to me to have peace of mind knowing I am insured to value in the event of a loss?”

This is also a good time to see what other coverages are offered by your insurance company. So take a deep breath, pick up the phone and you never know how much
you can save unless you call your broker.

There does exist, an equipment breakdown policy that can close the gap in your coverage to ensure you are better protected. The following are common causes of equipment breakdowns:

• Power surges and fluctuations
• power interruptions
• insulation deterioration
• overload
• boiler explosion
• loose connections
• moisture or high humidity
• dirt and dust
• vibration
• oil contamination
• misalignment
• metal fatigue
• lack of lubrication
• scale build-up
• pump failure
• and overall inadequate maintenance and human error.

Although equipment breakdown policies will vary, they commonly insure damage to the equipment itself, spoilage of perishable goods due to the breakdown, and loss of income due to the equipment breakdown.

What ‘equipment’ are we talking about? What might you have that needs this extra policy?

A few examples are computers, phone systems, photocopier/fax machines, security systems, ovens, scanning equipment, boilers, hot water tanks, heat exchangers, air
conditioners, refrigeration units, pumps, fans, compressors, motors, transformers, electrical panels, presses, production machines, motors, generators, gears, and
robotic milking systems.

If you’re unsure of what’s covered in your business or property policy, call your commercial or farm broker to ensure there are no gaps, and you’re fully protected.

It’s written in lay persons language and will help to answer the questions “what is that coverage for?” and “why do I need that coverage?”.

It also tells you why you should deal with our brokerage.

For more detailed information, please contact our experienced brokerage staff.

Download Our Guide Here

Whitley Insurance & Financial Services is proud to call this spectacular part of the province home.

Automobile Insurance

Factors and trends used to form automobile rates are:

• Territory or Where the vehicle is most often used;
• Age of drivers in the household;
• Number of vehicles compared to number of drivers in the household;
• If the driver is under 25 years of age, the age and sex are determining factors;
• Claims (Number ‘claimsfree’ years differs by each insurance company’s criteria);
• Convictions in the past three years;
• Use of the vehicle (commute to work, pleasure use only, business use);
• Make, model and age of the vehicle(s);
• Coverages you have chosen (Liability, Collision, Comprehensive and Endorsements).

Depending on your insurer’s offerings, there are numerous discounts that can be applied. It is always important to ask your broker to review all the discounts available to you.

Property Insurance

Factors and trends used to determine property rates are:

• Territory or where your home, condo or apartment is located;
• Distance to a fire hall and fire hydrant;
• Building materials of the dwelling (concrete, frame, brick etc.);
• Use of dwelling (strictly personal use or partial business use);
• Unique features within the dwelling (custom finishing versus builder’s grade);
• Floor, ceiling and wall finishing (plaster versus drywall);
• Claims (Number ‘claimsfree’ years differs by each insurance company’s criteria);
• Style of dwelling (two storey, split level or high rise versus triplex or townhouse);
• Coverages you have chosen (all risk coverage versus named perils coverage and endorsements).

Again, there are many discounts that can be applied. Ask your broker to review all available discounts to you.

There are other factors as well that are completely determined through each insurance company’s system that your broker can look into for your unique risk.

Don’t be afraid to call your independent broker for clarification. That’s your broker’s commitment to you…to service you and provide sound and educated advice.