Ask a
Broker
Questions to ask
your insurance
broker to make sure
you’re covered
What does my home
insurance policy cover?
Are there certain risks
not covered by my policy?
What is my deduct-
ible? And how does it
affect the cost of my
home insurance?
Am I entitled to any
discounts?
Are there any other
coverage options you
would recommend?
Is my home business
covered by my home
insurance policy?
Should I make a claim
for every loss?
caamanitoba.com/
insurance
58
Winter 2017
WinteR
CAA MAnitOBA
mAnitoBA
What’s
it Worth?
HOME OFFICE
Don’t forget:
• Computers
and tablets
• Desk accessories
• Cameras
Don’t forget all the little
things that can add up. Visit
caamanitoba.com/checklist
for a handy inventory
checklist
KITCHEN
Don’t forget:
• Countertop
appliances
• Place settings
and cutlery
• Pots and pans
inventory—at the office, in a safety
deposit box or saved on your mobile
device for quick retrieval.
Consider your coverage
Your home (including the land it’s
on) may appreciate over time, but
its contents typically depreciate.
That’s why it’s essential to not just
read your policy, but to understand
the differences between actual cash
value (ACV) versus replacement cost
(RC). For instance, if you purchased
a TV for $1,000 five years ago and
tried to sell it today, the market value
would be significantly less. The ACV
is calculated by determining the
replacement cost of the item and
subtracting depreciation.
Meanwhile, RC is the cost of
replacing your property with items of
similar kind and quality at the time of
the loss, without taking depreciation
into consideration. While it’s generally
considered a better option, RC has
intricacies too, Kee explains. “For
example, if you were to lose the home
completely, insurance would cover the
cost of materials and labour to rebuild
your home. It may cost more [to
rebuild] as a one-off than when you’re
building a whole new subdivision
because of economies of scale.”
That’s when your home’s insured
value versus market value factors into
the equation. “The insurance value of
LAUNDRY
ROOM
Don’t forget:
• Iron or steamer
• Vacuum
the home does not include the value
of the land,” Kee explains. Together,
the land and the improvement—your
home and its contents—make up the
market value. If you make a claim,
you’ll get a settlement on the home,
but don’t bank on taking the money
and pulling up stakes. Most policies
have a requirement that the home be
rebuilt on the same site.
Upgrade your home,
upgrade your policy
Whether you’re rebuilding after a loss
or undertaking a minor renovation,
remember that upgrades can signif-
icantly add value to your home—
especially kitchens and bathrooms,
which typically offer the highest
return on investment.
Such improvements can also affect
how your property is rated. Always
kitchen linens to the camping gear and
tools stored in the garage. Note the
make, model and age of items, being
as specific as possible, and document
serial numbers. Such details help
insurance adjusters identify what
was lost or destroyed, and determine
replacement and depreciation values.
Consider making videos or taking
photos of the rooms in your home
as well as individual items. (Family
heirlooms rarely come with receipts.)
This can be a valuable way to verify
details if you need to make a claim.
Sometimes you don’t know the true
value of obscure items, such as a
treasured hockey card collection,
until your insurance adjuster tries to
determine its replacement cost. Retain
receipts, warranties and appraisals,
especially for valuable possessions. “It’s
your proof of ownership and the age
and value of items,” Kee says.
When you’ve finished, make
and keep multiple copies of your