The purchase of your family home is one of the biggest investments you will make in your lifetime . You spend countless hours maintaining and decorating it and making it a safe place for your loved ones . To fully protect your investment , family , and personal items in the event of a loss , here are the top ten questions you should be asking your insurance broker to help provide you peace of mind and streamline the claim process , should a claim ever arise :
1 . HOW IS THE REPLACEMENT VALUE OF MY HOUSE DETERMINED ? Many brokers use industry-approved calculation methods to determine the rebuilding cost of your home . The value of your home should be reviewed at least every three years to ensure the value is current and takes into account the cost of inflation , i . e ., the increased cost of construction materials and labour . A professional building replacement cost appraisal is the most accurate valuation method .
2 . DO I HAVE GUARANTEED REPLACEMENT COST ENDORSEMENT OR IMPROVED BUILDING LOSS SETTLEMENT ENDORSEMENT COVERAGE ? Not all policies provide guaranteed replacement cost . This endorsement protects the homeowner against the risk of being underinsured in the event of a total loss . Guaranteed replacement cost endorsement will make up any shortfall if the value has been underestimated . Even if the damage exceeds the limits on your policy , the insurance company is obligated to fully replace or rebuild your property on the same site without any deduction for depreciation .
3 . DOES MY POLICY COVER EARTHQUAKE ? Earthquake insurance is an optional coverage that can be purchased to protect you and your family against damage to your dwelling and personal belongings due to an earthquake .
This insurance also includes snowslide , landslide , or other earth movements .
4 . AM I COVERED IN THE EVENT OF A FLOOD ? In most cases , your homeowners policy does not provide coverage for loss or damage caused by flood , surface water , spray , waves , tidal waves , ice , or objects in the water .
Optional coverage is available for loss or damage caused by water that escapes , overflows , or backs up through sewers , drains , sumps , septic tanks , eaves troughs or downspouts .
5 . DOES MY POLICY CONTAIN SPECIAL LIMITS ON INSURANCE ? Most insurance policies have coverage limits and restrictions for items such as jewelry , bicycles , collectibles , and watercrafts to name a few . In most cases , you can purchase increased limits to minimise the gap and provide full protection . Taking the time to review the special limits under your home policy with your broker will help avoid any frustration and disappointment in the event of a loss of such items .
6 . DO I HAVE TO NOTIFY MY BROKER IF I WILL BE AWAY ON VACATION ? While it is not necessary to inform your broker that you will be away , there are certain precautions you should take if your home will be unoccupied for seven or more consecutive days . Most homeowner policies will exclude coverage for loss or damage caused by the freezing of plumbing and heating systems while you are away from your premises unless you do the following : shut off and drain the system and appliances of water , and maintain the heat in the building and have made arrangements to assure the heat is maintained during your absence .
7 . DO I HAVE COVERAGE FOR A HOME- BASED BUSINESS OR HOME DAY CARE ? You may have a small amount of coverage under your homeowners policy for business contents kept at home ; however , depending on the type of business , an optional homebased business or day care endorsement will be required .
8 . WHAT HAPPENS IF MY HOME BECOMES VACANT ? If your home becomes vacant during the policy period , it is extremely important that you contact your broker immediately . Depending on the length of the vacancy , an additional premium will be charged and a vacancy permit will be issued . The coverage afforded under the policy will be reduced and certain coverages , such as water , could be excluded entirely .
9 . WHAT IS ADDITIONAL LIVING EXPENSE COVERAGE ? If your home becomes uninhabitable as a result of insured damage , the insurance company will cover any necessary increased costs of living such as hotels , extra restaurant costs , and moving and storage expenses so your household can maintain its normal standard of living .
10 . WHEN AND WHO DO I CALL IN THE EVENT OF A CLAIM ? If you need to report a claim or loss , you should contact your insurance broker as soon as possible once the situation is under control and all measures to minimise your loss have been taken . Most insurance brokerages have a twenty-four-hour claims service line that you can call to get immediate assistance after a loss . Depending on the type of loss , you may have to contact the fire or police department . If you have suffered a fire or water loss , a restoration company will most likely be dispatched to your home to assess the damage and assist the insurance company with arrangements and timelines for the repairs . +
Heather is the branch manager of the North Vancouver branch of Waypoint Insurance . Heather and her team are excited to introduce Waypoint Insurance to the North Vancouver community and from their office at 2120 Dollarton Hwy , they assist new and existing clients will all types of insurance . Contact Heather , or any one of our Waypoint offices , by calling 310-8442 or visit us online at waypointinsurance . ca
BY : HEATHER BATCHELOR , WAYPOINT INSURANCE
10 QUESTIONS YOU SHOULD ASK
10
Questions Every Homeowner Should Ask Their Broker