An Independent Insurance Broker Covers You Best.

Here are some Frequently Asked Questions that we as brokers get. If you have others, just ask one of our members!
Remember this is intended to be a guideline only, you really should speak to an independent broker in regard to your own personal situation.

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Auto Insurance Questions & Answers

Home Insurance Questions & Answers

Apartment insurance Questions & Answers

 

Auto Insurance Questions & Answers

Q. "What is the basic type of insurance that I have to carry on my car?"

A. By law, Ontario motorists are required to carry a basic minimum of $200,000 of Third Party Liability coverage for property damage or bodily injury you may cause to someone else in the course of using your automobile.
It is very important to note however, that $1,000,000.00 and higher has become more the norm and anything less is considered to be inadequate given today's legal environment. That is why you should carry higher limits than the basic minimum. Included in the 'Basic coverage' are benefits to you if you are injured in an accident. This coverage is called "Accident Benefits."

 

Q. "What's an 'endorsement?'"

A. An endorsement to a insurance policy, simply changes the policy in some way or customizes the policy to your needs.
Endorsement's take many forms, but for example, one can be added to your car policy that waives the depreciation on a new vehicle should you have an accident driving home from the car dealer. There are endorsements that can eliminate the deductible in the event of a loss, one that excludes a specific driver or provides coverage for a rental car in the event of an accident that makes your car undriveable.

 

Q. "If we have no-fault insurance in Ontario, and I cause an accident, then its not my fault right?"

A. No! If you cause an accident, you will be charged from an insurance standpoint, and it will count against your insurance record. This is the case regardless of whether you are charged by the police or not.
The term "No-Fault" applies more to the insurance companies than to you and I driving down the road. Simply put, regardless of who is at-fault for the accident, for the property damage done to our vehicles, your insurance company will fix your car and my insurance company will fix mine, period. The driver that was at-fault driver will be penalized from a rating standpoint.
The only way we have access to one another's policy is if there are law suits regarding injury claims etc..

 

Q. "What's the difference between "collision" and "comprehensive?"

A. Collision insurance covers damage to your car as a result of an impact with another object in or on the surface you are driving. Effectively just that, a collision.
Comprehensive coverage insures against damage to your vehicle from causes such as vandalism, theft, or a flowerpot landing on your hood from a 9th floor balcony. Windshields are also covered under comprehensive.

 

Q. "Why do I have to pay a deductible?"

A. The principal of insurance is to provide coverage for large losses that could be potentially crippling financially. A deductible means that you are sharing in the risk. The basic principal being that by putting a few hundred dollars of your own money on the line with the insurance company, you will be less likely to use the 'parking by feel' method.
Depending on the situation and the insurance company you are with, no deductible applies to some losses, like fire or theft of the entire vehicle.

 

Home Insurance Question & Answers

Remember, this is intended to be a guideline only. As everyone's personal situation is different, you really need to speak with an independent insurance broker. One of our members would be pleased to discuss your insurance needs.

Q. "I paid $350,000.00 for my house. How much insurance coverage do I require?"

A. Regardless of the amount you paid for your house, your insurance broker will discuss the features of your house and use an insurance industry evaluation tool to calculate the replacement cost amount for your house. Many factors are included in the calculation of the replacement cost of a house. They include square footage, year built, # of stories, construction of the dwelling, # of bathrooms, type of flooring, type of basement, decks, garages, etc... Plus, the replacement cost figure also factors in general contractor and architect fees, debris removal costs and even permit fees.

 

Q. "What types of policies are available?"

A. There are basically two types of homeowner's insurance policy wordings. The "Broad" form policy and the "Comprehensive" policy wording. The "Broad" form policy offers "All Risks" coverage on your house and outbuildings and "Named Perils" coverage on your contents. The "Comprehensive" form wording offers "All Risks" coverage on your home, outbuildings and contents.

 

Q. "I have some jewellery and a coin collection. Are they covered under my policy?"

A. There is jewellery coverage and coverage for money. However, certain items have special "limits" of coverage on insurance policies. You need to discuss your coverage requirements with your insurance broker. Some items need to be insured and shown separately on your policy — at an extra premium.

 

Q. "Once I choose my policy, are there any other coverages that I require?"

A. Absolutely. Your policy offers the standard coverages that meet the requirements of a mortgage company, but the standard coverages do NOT fully insure your house or contents. There are additional coverages like sewer back-up coverage, by-laws coverage, earthquake coverage or even additional coverage for boats, golf carts, wheelchairs, musical instruments, furs, cameras stamp/coin collections, jewellery, etc...

Obtaining an insurance policy that suits your personalized needs can be a complicated process. Contact your local independent insurance broker to get the professional advice you deserve.

 

Apartment Insurance Questions & Answers

Remember, this is intended to be a guideline only. As everyone's personal situation is different, you really need to speak with an independent insurance broker. One of our members would be pleased to discuss your insurance needs.

Q. "Why do I need to insure my contents?"

A. There is no law that requires you to insure your contents. However, included in your tenant's insurance package policy is liability coverage. Most landlords require proof of insurance before you move into their apartment. This ensures that you have liability coverage — along with your contents coverage - in the event there is a claim and a lawsuit commences. The landlord wants confirmation that your insurance company would handle any lawsuit brought against you as a result of the claim.

 

Q. "How much contents coverage should I have?"

A. There is no single answer for this question. Everyone has different belongings and different values for their belongings. We recommend that you take an inventory of your belongings to determine the right amount of coverage. One point to remember is that when replacing an item — determine the value of that item as a "new" item. Do not try to lower your contents value by depreciating the value of the items. To determine how much insurance coverage you need; log onto vvww.knowvourstuff.org for a free inventory program calculator.

 

Q. "Are my contents only insured while it is at my apartment?"

A. No, most insurance policies offer world-wide coverage. Therefore, if you lose an item while on vacation, there could be coverage for that loss. You would need to consult your insurance broker for verification as to your policy territory coverage.

 

Q. "I have some jewellery and a coin collection. Are they covered under my policy?"

A. There is jewellery coverage and coverage for money. However, certain items have special "limits" of coverage on insurance policies. You need to discuss your coverage requirements with your insurance broker. Some items need to be insured and shown separately on your policy — at an extra premium.
Obtaining an insurance policy that suits your personalized needs can be a complicated process. Contact your local independent insurance broker to get the professional advice you deserve.

 

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