Insurance Tip Archives : Williamson & Co. Limited, Insurance Broker

Insurance Tips

Concerned about an Insurance Issue?
Your first step is to call us. If we can't resolve the issue to your satisfaction, we will recommend that you make a formal complaint to your insurance company. This starts with your insurance company Consumer Complaint Officer (OMBUDSMAN). A list of all Consumer Compliant Officers and their phone numbers is available on the Financial Services Commission of Ontario (FSCO) website at www.fsco.gov.on.ca. If your issue is still not resolved, request a letter from the company stating is final position on your complaint. From here you will need to write to FSCO's Insurance Ombudsman, describe your complaint and explain why you disagree with the company position. Make sure you include a copy of the insurance company's letter. The Insurance Ombudsman will review your written complaint and will attempt to resolve it once and for all.

Excerpted from Staying in Touch Newsletter.

Are You On Thin Ice?

Although the calendar may say winter, no ice is without some risk. Clear, hard, new ice is the only kind of ice recommended for travel, and it is critical that the ice quality or type of ice is evaluated before you travel. Here are some recommended minimum ice thicknesses for new, clear, hard ice:

•    If there is 7 cm ( 3” ) or less, stay off.
•    For ice fishing, walking, or cross country skiing at least 10 cm ( 4” ), is required.
•    One snowmobile or ATV type vehicle requires at least 12 cm ( 5” ) .
•    A car or small pick-up truck requires 20 to 30 cm ( 8“ to 12“ ).
•    A medium truck requires 30 to 38 cm (12” to 15“ ).

Avoid slushy ice, ice on or near moving water, ice that has thawed and refrozen, and layered or rotten ice caused by sudden temperatures changes. Other risk factors that weaken or “rot” ice, include snow on ice that acts as a blanket to prevent hardening of ice, and pressure ridges due to wind or current pressure.

Home Renovations Create Additional Risks

Last month we outlined what you need to discuss with your building contractor to safeguard your position.

This month, we discuss possible coverage restrictions when your home is undergoing renovations. While most repair or renovation work will not require changes to your homeowner’s policy, there are some restrictions you should be aware of.

If building materials stored on your property are stolen, they are not usually covered. Also, if the building is under construction, there may be no coverage for vandalism or malicious acts. Water damage is also restricted, especially if it is during the usual heating season. If your property is going to be vacant during the renovation, contact your broker so that your coverage does not lapse. Remember to call before the work starts, so that your most valuable asset is protected.

Your Auto Insurance has Changed – What Should You Do?

On September 1, 2010, the Ontario government implemented a major overhaul to automobile insurance in the Province. You now have more choices to customize your medical and rehabilitation benefits, certain deductibles and income replacement coverage. So, what should you do?

If you are buying a new policy after September 1, 2010, you will receive the new Standard Auto Insurance Policy and have options to increase your benefits.

If your vehicle is already insured, you don’t have to do anything until your next policy renewal date. When your policy comes due for renewal, the new Standard Auto Policy will apply. In the meantime, your insurance company will automatically include the coverages which were in effect prior to the reform.

If you prefer to move to the new Standard Auto Insurance Policy before your next renewal ate, contact your insurance broker or agent. An explanation of options will help you make an informed choice.

The Choice is Yours

Ontario recently announced legislation that will give consumers more choice and flexibility in their automobile insurance protection. More than 40 revisions to auto regulations have been enacted that give consumers options.

The reforms will help keep insurance premiums affordable by letting Ontario drivers buy coverage that meets their individual protection needs and budgets. The overall purpose of the reforms is to stabilize insurance rates and prevent large premium increases in the future. Without reform, further 18% to 25% increases were anticipated.

In addition, 17 new consumer protection measures have been proposed, including one that prohibits using a driver’s credit score to determine whether a driver is insurable or how much to charge for automobile insurance. The reforms also streamline a number of processes to reduce costs and create a less complex auto insurance system.

A key area targeted is the Accident Benefits of the auto policy. See next month’s tip for more information on that area.

GPS Technology Could Help Criminals Rob Your Home

A thief can steal your car in as little as two minutes; a smash and grab robbery can happen in seconds. If your car has a GPS device with your home address programmed into it, a thief can rob your home too.

If you have a portable GPS system or remote garage door opener, hide them well or take them with you when you leave your car. Once the car or portable GPS unit is stolen, the thieves can find their way to your residence and use the remote garage door opener to gain access to your dwelling.

If your GPS has a key or password lock, use it. If it doesn’t, don’t put your home address in it. Instead, program a nearby address (like a store or gas station) so you can still find your way home if you need to, but a thief can’t find out where you live.

To deter thieves in general, lock your doors, keep your home visible from the street, have neighbours watch out for one another, keep all outside entrances well lit, and install and use a monitored alarm system.

Can Your Business Survive Crime?

Crime losses are a major contributor to business failure. Whether it’s robbery, burglary, theft of money and securities, computer fraud, or employee dishonesty, crime insurance coverage can be tailored to meet your specific needs.

Crime insurance is actually a collection of insurance agreements that relate to the taking of money, securities and other property from a business or organization.

One crime policy known as Comprehensive Dishonesty, Disappearance and Destruction Policy (3D), contains five insuring agreements that can be purchased individually, as a group, or in any combination.

These agreements are typically divided between losses that take place “inside” the business premises and losses that occur “outside” the business premises and can include employee dishonesty, forgery, theft, robbery and holdup, burglary and fraud, as well as a host of other crimes.

If your business or organization has employees and/or handles cash, securities or other property, you likely need crime insurance.

The Adjuster’s Role in the Claims Process

To start the claims process, your insurance agent or broker will file a “Notice of Loss” with your insurance company. An independent or company adjuster will then be assigned to handle your claim.

Their role is to oversee the process of putting you back in the same position you were in immediately prior to the loss, subject to your policy terms and conditions. The adjuster will investigate the cause of loss, confirm coverage, and may assist in obtaining estimates for professional services required. They will guide you through the paperwork and include you in the decision process of who will do the work and what services will be performed.

At this point, a “Proof of Loss” will be presented for your signature. This legal form documents the loss as presented by you and states that the damages claimed are accurate. Once your insurance company accepts the Proof of Loss, all work and services required under the claim will begin in a timely fashion, subject to the availability of products and services.

Should I File a Homeowner’s Insurance Claim or Not?

First of all, report the loss promptly to your insurance agent or broker, who will ask a few questions to better understand the events surrounding your loss and determine the severity of damage. If you have immediate needs, appropriate assistance will be offered.

It is your responsibility to mitigate the loss, which means you are expected to take immediate action for emergency repairs or tasks within your control, with resources available to you, to minimize further damage. Your insurance company will cover all reasonable expenses to prevent the loss from getting bigger.

Your agent or broker will review your coverage, your deductible, and the impact the claim will have on your policy discounts or renewal terms. You will be counselled on the prudence of making a claim, taking into account the severity of the claim, the nature of the claim, and your previous claims experience. After careful consideration, should you decide to proceed with a claim, the claims process will be started for you. Next Month: The Adjuster’s Role in the Claims Process

Why Deal with an Independent Insurance Broker?

1. They offer added value for your premium dollars by giving you choices, quality products, sound advice, and personal service - something you can’t readily get from a call centre, or direct writer.

2. They are trained professionals who understand your personal insurance needs and the specific needs of your business.

3 They act as your insurance “buyer”, shopping the market to make sure you get the broadest coverage at a competitive premium. This is a tremendous advantage, which is not available from agents who only sell for one insurance company.

4. Finally, as part of your community, independent brokers contribute everyday by dealing locally, volunteering, sponsoring, supporting, and getting involved in activities that benefit everyone.

Are You Prepared for a Winter Road Emergency?

There is still a lot of wintry weather ahead of us this season. If you become stuck in your vehicle due to dangerous weather conditions, remain inside and provide a signal to rescuers such as placing a brightly coloured cloth in a window where it is visible. Start the car once an hour and leave it running for 10 minutes. Keep the exhaust pipe clean so that fumes can escape.

It is essential to have an emergency travel kit ready in your vehicle at all times.

Here is a list of items it should contain: blankets, flashlight and batteries, fully-charged cell phone, extra clothing (hats, gloves, boots), first aid kit, map or GPS, bottled water, ice scraper and/or snow brush, flares, extra windshield washer fluid, battery booster cables, bag of sand or salt, shovel, candy or chocolate bar for energy, paper towels, matches.

Taking these important steps will help protect your most important asset – your life.

Do You Want to Go "Green?"

Today, there are various products and materials that have been recognized as environmentally friendly, non-toxic and/or energy efficient. Some examples are: paint and sealants, flooring, appliances, light fixtures and bulbs, faucets, fixtures and toilets. Certain central heating systems and windows are deemed to be "greener' or more energy efficient than others.

To address this and encourage environmental responsibility, some insurance companies are now offering a "greener home endorsement', which can be purchased by homeowners for a small additional premium.

In the event of damage to insured property, such as the dwelling, its contents, or an additional building, caused by an insured peril, this will cover any increased cost associated with replacing certain types of damaged property with materials or items of similar quality that have been recognized as environmentally friendly, non-toxic and/or energy efficient by a Federal, Provincial, Territorial or Municipal government, or a recognized certification body.

Specific limits and other conditions apply. If you are interested, check with your broker to see if your insurer offers this endorsement.

"Greener" Home Power Generation

Over the last few years, more Ontario homeowners have been installing power generating equipment on their properties for their own use, and often "selling" back power to the energy grid. Ontario's MicroFit program is designed to compensate and encourage homeowners to do this. Solar panels and wind turbines are the most common equipment used. This type of risk is not usually written on a Personal Lines form, thus creating new insurance needs.

Insurers have designed specific coverages and endorsements to meet varying needs. The insured may be in one of the 5 following scenarios: owns equipment, and is tied-in to the grid; leases equipment, and is tied-in to the grid; owns equipment, but is not tied-in to the grid; leases equipment, but is not tied-in to the grid; leases land to a 3rd party who installs their own equipment.

A detailed questionnaire/application is usually required to determine eligibility and coverage requirements. Contact your broker to discuss your particular situation so that the proper coverage can be put in place.

Are Natural Disasters and "Acts of God" Insured?

There is a lot of confusion about whether damage resulting from natural disasters and other so-called "acts of God" are covered by a residential insurance policy. One example of such an event is earthquake.
The recent tragedy in Japan focused our attention on how devastating a major quake can be. Earthquake cover is handled very differently in Canada than in Japan. There, the insurance industry and the government created a state-backed Earthquake Insurance System, which has evolved over the past 45 years, covering a full range of causes triggered by an earthquake including shaking, fire, and tsunami.
There is no such program in Canada. Fire resulting from an earthquake must be covered under a fire policy; for example a homeowner's, tenant's or condo policy. Shake damage would only be covered if the insured has added an earthquake endorsement, but some insurers do not offer such an endorsement. Tsunami damage is not covered under the basic policy or under the endorsement. Moreover, each element has different deductibles and other terms and conditions.
Roughly 60%-65% of homeowners purchase coverage in southwestern B.C. We are fortunate here in our area of Ontario, we are not subject to a high risk of serious earthquakes.

Are Natural Disasters and "Acts of God" Insured? Part 2

Last month we discussed whether earthquake damage was covered by personal property policies. Another rare type of natural disaster in our area is wildfires. Unless you live in or relatively near forested areas, the risk is quite remote. The western Canadian provinces of Alberta and B.C. are more often subjected to this dangerous phenomenon. In fact, this spring, the northern Alberta community of Slave Lake was devastated by a major wildfire. It has been recorded as the second costliest insured disaster in Canadian history.

So, yes, wildfires are covered by personal and commercial property wordings as well. It was the Great Fire of London in 1666, with its staggering property loss, which prompted the first fire insurance coverage, and fire has been an insured peril ever since.

Are Natural Disasters and "Acts of God" Insured? Part 3

So far, we have discussed whether earthquake damage and wildfire damage are considered insured perils on personal lines property policies. This month, overland flooding is the topic. This year in particular, widespread spring flooding involving the overflow of many rivers, including the Red and the Assiniboine in Western Canada, created havoc for property owners. Canada is the only G8 country where flood insurance is not available to homeowners, who are unable to buy insurance for overland flood damages.

With other forms of water damage being covered, such as sewer backup and burst pipes, and with commercial entities being able to purchase flood insurance, the coverage void tends to confuse – even anger – homeowners when they discover they are not covered after a flood event. A discussion paper was released last fall titled, 'Making Flood Insurable for Canadian Homeowners', by the Institute for Catastrophic Loss Reduction. If and when flood insurance does become available for Canadian homeowners, Canada will be put in line with most other industrialized countries, and the confusion with regard to water damage claims will end.

Are Natural Disasters and "Acts of God" Insured? Part 4

Insurance coverage on personal property policies for natural disasters including earthquake, wildfire, and overland flooding, has been discussed in previous tips of the month. Next on the list are hurricanes and tornadoes. Wind damage from both of these extreme and destructive weather phenomena is covered because they are included under the peril of windstorm.

Of the top 10 costliest insurance losses since 1970, seven have been hurricanes. To date the costliest hurricane of all was Katrina in 2005 at a total of $71 billion (USD indexed to 2009). Coincidental rain damage is not covered unless the storm first creates an opening in the dwelling, detached private structure or building. Damage due to waves or floods whether driven by wind or not, is excluded.

Beware of Fraudulent Insurance Companies

The Financial Services Commission of Ontario is warning consumers that Lima Automobile insurance Co. is not licensed to do business in Ontario. Lima has been collecting premiums without providing coverage. Consumers were offered a discount if they paid the insurance premium in advance. Individuals from this company also represented themselves as licensed insurance agents and insurers. An earlier warning advised that a company called Capital Insurance Co. is not licensed to do business in Ontario. Dealing with licensed brokers who are regulated by RIBO, and companies who are regulated by FSCO, is a good business practice.

Putting a Car to Sleep for the Winter ?

Many people have "seasonal" or classic cars which are "put to bed" during the cold, snowy months. Here are some pointers to help protect your vehicle:

Fill your gas tank and add a fuel preservative

Take one last drive to circulate the preservative

Make sure your antifreeze is fresh and topped off, and change the oil

Overinflate tires to avoid flat spotting, or jack up the car to take pressure off the tires

Put a battery manager on your car

Try a rodent repellent under the hood to prevent them nesting in the engine compartment. Remember to remove it before starting up!

Put down a few moisture pads on the upholstery to absorb moisture and prevent mildew

Cover the car with a breathable car cover to prevent corrosion and rust

The Gift of a Safe Holiday Season

With the festive season fast approaching and its frequent gatherings of family and friends, it is wise to be extra vigilant in order to prevent residential fires. According to the Canadian Association of Fire Chiefs, the number one cause is kitchen fires. A number of years ago, the average time residents had to escape a fire was 17 minutes; now it is less than 3 minutes. That startling difference is due to the fact that nowadays synthetic fibres and materials promote the rapid spreading of the fire as compared with the natural fibres which used to be more common. It is recommended that you have a floor plan of your residence and that you map out at least two escape routes from each room. Also, you should have a designated central meeting place outside. For more information consult the following website: safeathome.ca

Drinking & Driving Laws are Now Tougher

Approximately 16,000 people are convicted of driving with a blood alcohol level above the legal limit in Ontario each year; that's almost 2 people every hour. Recent changes to Ontario's Highway Traffic Act means you could now face a 3 day suspension - even for your first offence - if you operate a motor vehicle with a blood alcohol level of .05 to .08 or more. Previously, the penalty was a 12 hour suspension for a first offence. If you are caught a second time, your license may be suspended for 7 days, and you will be required to undergo a remedial measures course. From an insurance perspective, any suspension is now recorded on your driving record. After the first offence, you could face significantly higher insurance premiums. And remember, while your license is suspended, you are uninsurable.

Reduce the Risk of Loss From Car Theft or Break In

Research has shown that over 80% of people fail to register any reaction to the sound of a car alarm; it has become like urban white noise – as commonplace as dogs barking, sirens and everyday traffic. Guard against the theft of valuables from your car by placing them in the trunk or, better still, an in car safe for your valuables. If you are out without your car, ensure your keys are well hidden at home, as most home-based car thefts result from keys being stolen from the house. Choose parking spots wisely, in well lit places, or use car parks with security guards and CCTV cameras. Remember to lock you car and not leave the key in or on it. Navigation systems often contain personal data which could lead a thief straight to your home, so keep them out of sight when not in use. Make a list of all your valuables, with their worth and check that you’ve got enough insurance to cover their full value.

Do You Heat Your Home With Oil?

The insurance industry has experienced many large and expensive claims due to oil spills over the past few years. The impact of a fuel oil spill or leak can be devastating to your health, the environment, and the value of your property. As a result, many stakeholders including the fuel oil industry, government regulators, and insurance companies are working together on a collective approach to mitigate these claims.

According to Ontario legislation, oil tanks are required to have annual maintenance, and a comprehensive inspection of the tank and equipment every 10 years. Your oil tank, fuel lines and furnace should be inspected by a certified technician at least once a year. The law requires this inspection to be done to have oil delivered to your home.

More insurance companies are now requiring a detailed oil tank questionnaire, pictures of the tank, and an oil burner technician report (OBT) to assess the safety aspects and coverage provisions. Most insurance companies will not provide homeowner’s coverage if the oil tank is 20 years old or over. Next month we will provide a Preventative Measures Checklist to assist you in protecting your home family and neighbours from the consequences of an oil leak or spill.

Preventative Measures for Homeowners Using Fuel Oil

Adopt the following to protect your home, family, & neighbours:

Contact your heating contractor immediately if you smell the odour of fuel oil.

Check to make sure that your oil tank is approved by Underwriters’ Laboratories of Canada (ULC).

If your tank is 12 years of age or older, consider replacing the tank with a new tank.

Never buy or install used fuel oil tanks. Never transfer oil from an old tank to a new tank, as water & contaminants can also be transferred.

Oil tanks should be located at least 100 ft. from the nearest well. Tanks located beside driveways should be protected with concrete posts.

Ice shields are available to protect your tank & lines from falling ice & snow. If your tank is at risk, have a shield installed.

Oil tanks should rest on a solid, non-combustible, level surface.

Oil tanks should not be touching a wall, resting on wood or wood supports, or raised on stacked blocks.

If you have questions about your current coverage or would like to inquire about additional insurance,
Call us at (613) 476-7418 or Email: frank@williamsonins.com