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There is no such thing as a foolish question, especially when it comes to Car/Home Insurance

Do you remember your days in school when the teacher would ask a particularly difficult question? It became an involuntary reflex to drop your head, look at the pencil scratches on the desktop, and pray that she didn’t call your name. The human need to be seen as all-knowing and invulnerable really amazes me.  

Insurance brokers strive to be the opposite. It is our nature to ask questions in order to learn and understand more, and we know that clients have questions, too. We want to encourage those. So, to break the ice a little, I have captured some of the most commonly asked questions by our clients. They are categorized to help future clients benefit and perhaps even trigger some new questions that have yet to be asked.  

Please remember: If your specific question is not listed below, do not hesitate to reach out to us. We love answering questions!  


Comprehensive Coverage, what does this include? (Auto Insurance)
This will cover damage to your vehicle caused by fire, theft, weather, falling objects, vandalism, and animals. This coverage is not required. However, it is highly recommended considering the climate we live in and the high percentage of claims which are settled under this category. 

My kids are going away to school. Will they require any additional insurance to protect their stuff when attending University this year? (Home Insurance)
Under your Home Policy there is an extension of coverage for property of your child while attending  Daily writing – BLOG ideas and White Paper Topics post-secondary education. The limits of coverage vary from one company to another, so check your policy. (In our office, the limit ranges from $2,000 to a full policy limit.)  

Who can drive my car? (Auto Insurance)
A very common, and somewhat loaded question that we hear a lot. The old adage, “Lend your car, lend your insurance,” applies. The responsibility of the vehicle owner is to ensure that ONLY a licensed operator is using his/her car. Barring that requirement, you are essentially giving permission to the operator to use your insurance. This leads to the next question…  

Why do you need to know if there are ANY OTHER Licensed individuals in my house that would have access to my vehicle? (Auto Insurance)
Insurance is about managing risk. If another person who can legally operate your vehicle has access to it, the insurance company looks at this from the perspective of “additional” potential risk. If that other person has their own vehicle and insurance, then it’s not an issue. Otherwise, it factors into the fair rate that’s otherwise determined by your driving history.  

What is sewer backup coverage, and do I need it? (Home Insurance)
This endorsement (additional coverage) to your homeowner’s policy protects you from the “sudden backing up or overflow of water from within sewers, sumps, septic tanks or drains located inside the building.” One of the common misconceptions is that if you are tied into town/city sewer lines that you do not require this coverage, as it is the responsibility of the town/city to cover damage caused by their system. That is not correct. Unfortunately, many people exclude the coverage from their policy and end up without coverage.
Premium (Cost): 

Why did my Premium go up? (Auto Insurance)
In the Maritimes, ALL provinces legislate the premium (cost) of car insurance for their residents. These rates are filed every February to the provincial government for review and acceptance. This independent board of officials follows strict guidelines as mandated by the Insurance Act. Premium increases can be directly correlated to an increase in claims paid within a specific territory or province.  

Why did my Premium go up? (Home Insurance)
Property Insurance in Canada is being significantly impacted by the rise in weather-related events. Fire was the largest cause of claims for property insurance since the product inception 400+ years ago. However, over the past 6-7 years, water damage has increased to over 50% of the claims for property insurance. It also now represents over 50% of the claims dollars paid to policy owners.  Other things that may impact or damage your home: old roof, no updates for electrical, change in the heating type, inflation, etc. Our recommendation to clients is to have a FULL home owner policy review every 3-5 years.  

Will my premium be impacted by a glass claim? (Auto Insurance)
Not after the first claim, or even after a few. However, if the insurance company sees an excessive number of claims, they may force the policy-holder to add a 13C endorsement that removes glass coverage (which will see a reduction in premium on the policy), or increase the deductible of the policy.  

Discounts: What is a Backwater Valve? (Home Insurance)
A backwater valve is installed in the line of the pipe that takes water/sewage from your home to the  Daily writing – BLOG ideas and White Paper Topics town system or septic tank. If you take this preventative measure to reduce your risk, most insurance companies provide a discount on the policy premium.

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