Home Insurance in the Montreal Area - Car Insurance in the Montreal Area - GENERAL INSURANCE BROKER - RONALD WILLIAMS (RWI)- INSURANCE BROKERS - COURTIERS D'ASSURANCE

If you are like most home owners, you will probably never need to submit an insurance claim. But no one is immune from misfortune! It's good to know that the premiums of many people like you are available to pay for the insured losses of a few. Within limits, home insurance reimburses you for your financial loss arising from mishaps that are generally "sudden and accidental" and hard to predict and prevent.

Throughout Canada, private insurance companies compete for your business either directly with their own agents or through independent brokers. They compete not only on price, but also on service and coverage. There's no such thing as a standard home owner's policy. Because coverage may vary from one insurer to another, it is important to have your broker or agent explain the policy to you before you agree to coverage. You are also welcome to call any of the Insurance Bureau of Canada's information centres listed at the end of this pamphlet.

Note to tenants: if you're renting your home, you may wish to skip the sections on condominium insurance, insuring your cottage, and insuring your mobile home; these will likely apply to home owners only. Please be sure to read the special section on tenant insurance.

Insurance coverage on your home should begin as soon as you become the legal owner or tenant, even if it is still under construction. The policy can also cover related building materials on or adjacent to your property. If you're about to move to a new home, ask your broker or agent if your current policy will cover your contents at both old and new locations, and in transit, too. Theft insurance applies only when a building is ready for occupancy; vacant buildings are not normally insured for more than 30 days. (See Vacancy)

Not all home insurance policies are created equal, nor are they priced the same. When buying a new policy or renewing a current one, you may wish to obtain quotations from a variety of insurance company agents and independent brokers. When dealing with independent brokers, it is important to know which companies they represent and where they place most of their business. It can pay to consult brokers who represent different groups of companies as well as agents employed by individual insurers.

When comparing quotes and coverage, don't forget service! While good service may cost a bit more, it may well be worth it.

You may wish to enlist the aid of a reference library in researching insurers' financial ability to meet their obligations to policyholders. Many insurance companies buy reinsurance (insurance for insurers) to enhance their ability to meet claims. Be sure to talk to your agent or broker about this as well.

In the unlikely event of an insurer's collapse, the industry-funded Property and Casualty Insurance Compensation Corporation (PACICC) will respond to claims of policyholders under most policies issued by property and casualty insurance companies. The maximum recovery from PACICC will be $250,000 with respect to all unpaid claims for losses arising from a single occurrence. PACICC will also refund 70% of the "unearned" (unused) premium (maximum payout $700) applicable from the date of the insurer's collapse until the policy's expiry date.

Some insurers offer discounts or other incentives for policyholders who install smoke alarms, sprinkler systems, and monitored intruder alarms. Some reduce premiums for seniors. Employment by a particular organization, or membership in a organization such as a credit union or alumni association may qualify you for an "affinity" discount.

Some insurers offer discounts to loyal, long-term policyholders - a factor worth considering if you have been happy with your insurer's prices and service.

Although "tied selling" is not generally permitted, government regulators find the term difficult to define. Some regulators, for example, may decree that an insurer cannot offer to insure your car only on condition that you also buy your home insurance from that company. On the other hand, your insurer may be willing to offer you a discount if you choose to do so.

Consider lowering your premiums by opting for higher deductibles for claims relating to your home and its contents. A deductible is the self-insured part of each loss; it is not a feature of liability insurance, however.

Don't under- or overinsure!

Don't underinsure the contents of your home. Estimate the value of your possessions and update your inventory (See Know what you own!) at least once a year. Remember to include taxes. If the value of your possessions is greater than the amount of contents coverage specified in your policy, have it changed accordingly. Minimum contents coverage for home owners is normally a percentage of the building amount.

Resist any advice to overinsure the building by including the market price of the building site itself in the insured value. Whatever the limits of your policy, however, you can never claim for more than the actual loss to insured property. Insured property does not include the market value of the underlying land.

Home owner insurance policies cover the building and its contents (contents only for tenants and condominium owners) for "direct loss" or damage caused by insured perils, which may be stated individually or merely described as "all risks".

A "comprehensive" policy covers both buildings and contents for all risks that are NOT specifically excluded.

If you are inclined to save money by carrying more of the financial risk yourself, you may wish to consider a "named perils" policy, which covers only those perils, such as fire, that ARE specifically included in the policy.

Or, if you find the comprehensive policy too expensive, and the "named perils" policy too risky, a mid-price compromise is the so-called "broad" policy, which provides "comprehensive" coverage on the really big-ticket items like buildings, and "named perils" coverage on the contents.

Some insurers offer very "bare-bones" or "no-frills" coverage for properties that don't meet their normal underwriting standards; contact your agent or broker for details. If physical problems with your home are the only reason it does not meet insurers' standards, you may save money in the long run by correcting the deficiencies in order to qualify it for better coverage.

Also see "Insurable perils", "Optional coverages", "Uninsurable perils".

*Policy wordings and coverages may vary within these general policy categories from one insurer to another; trade names may also be used.

Tell your insurer about major changes

If you plan to build a rental apartment into your home, duplex it, begin operating a business there, or make any other significant alterations to the structure or the way it's used, be sure to tell your insurer. For insurance to work well, full disclosure of risk is required. With insurance, the best surprise is no surprise at all!

Wood-burning stoves

Caution: Wood stoves are a common source of fires and carbon-monoxide poisoning, particularly if they are not properly installed and maintained. Insurance companies often want to inspect such installations. Consult your agent or broker before buying or renting a home with a wood-burning stove or before installing one.

This section applies mainly to "broad" coverage for contents, to "named perils" and "basic" coverage for both building and contents. Insurable perils include:

Aircraft
Electrical current
Explosion
Falling object -(not including objects propelled by snowslide or earth movement)
Fire
Lightning
Riot
Smoke -(released suddenly from malfunctioning cooking or heating devices, but not from fireplaces)
Theft
Transportation -(of personal property while it is temporarily away from your home; includes building fixtures and fittings being repaired or in seasonal storage)
Vandalism -(while building is normally occupied).
Water damage -(this is a complex issue; be sure to discuss it carefully with your agent or broker!)
Wind and hail -(applies to the outside of a building except for antennas, satellite dishes, etc.; the interior of a building and its contents are covered only if the storm has first created an opening).
Window glass -(breakage in a building that is normally occupied; not covered by tenant insurance).

Water damage

Coverage usually includes damage arising from sudden and accidental escape of water from an indoor plumbing, heating, sprinkler or air-conditioning system; or from an indoor or outdoor "domestic appliance" on your premises; or from a water main. "Domestic appliance" is defined in the policy and includes water heaters, water beds and swimming pools. "Water" may be in liquid form, or it may be steam or ice. However, coverage for freezing damage is restricted to property inside your home and there are special requirements if your home is unoccupied for more than four consecutive days in winter. (Read carefully the comments about freezing under "Uninsurable perils")

Coverage usually excludes damage arising from [1] floodwater such as that from an overflowing creek; [2] repeated or continuous water seepage (from a cracked basement wall, for example, or from an unrepaired pipe; [3] malfunctioning sump pumps, leaky gutters and downspouts); [4] plumbing vibration or "water hammer" (often caused by a loose valve stem on a tap); [5] sewer back-up. (See "Optional coverages)

Optional coverages

Coverages for the following perils, not normally included in any type of home insurance policy, may often be purchased separately:

Earthquake - (particularly worth considering in 'quake-prone regions of Quebec and British Columbia; cost varies according to location and type of construction; your insurer may be able to advise you of techniques for reducing earthquake damage)

Furnace oil spills - (consider replacing steel tanks more than 20 years old; beware of damage to concealed pipes and tubing - see Your liability to others.)
Sewer back-up - (useful in some low-lying areas, particularly those with combined storm and sanitary sewers; your insurer can advise you about the merits of back-flow prevention devices)
Replacement cost and actual cash value

The calculation of how much money your insurer will pay to you following an insured loss is described in your policy, usually under "Basis of Claim Payment".

Actual cash value (ACV)

There's good news and less good news if you and your insurer agree on a cash settlement of your claim. The good news is that there are "no strings attached"; you can spend the money as you please. The less good news is that a cash settlement takes into account the effect of depreciation due to wear, condition, age, and obsolescence. The actual cash value is usually the cost of replacing the property with something of like kind and quality... minus an allowance for depreciation. A deductible may apply (see "Making a claim").

Replacement cost

You may be able to receive a settlement of your claim without deduction for depreciation, but this requires you to have the property repaired or replaced with like kind and quality. A deductible may apply (see "Making a claim")

Home insurance policies automatically include "replacement cost" payments for building losses if repair or rebuilding occurs. The settlement can be up to, but not greater than, the amount of insurance stated in the policy.

Although you and your insurer may appraise your home carefully, it is still possible to underestimate the replacement cost of a building. Guaranteed replacement cost coverage will make up such a shortfall either completely or to an agreed amount.

A note about roofs: some policies will pay only depreciated values, as low as 25%, for damaged roofs that are near the end of their designed service life. Replacement costs are paid on the rest of the damaged building, but only if reconstruction occurs on the original site.

By-law endorsement

When construction codes and zoning bylaws change, existing buildings are usually exempted. But when a severely damaged building has to be substantially rebuilt, the entire building may have to comply with current standards. This could mean costly addition of a sprinkler system or even demolishing, relocating and rebuilding those portions of the structure that are undamaged. An optional "by-law" endorsement may be purchased to cover this additional expense, but the overall amount of insurance may need to be higher.

Although most policies provide replacement-cost coverage for the contents of your home, such coverage may be optional on your policy. To speed things along, you may receive actual cash value as a "down payment" (see "Making a claim").

Keep in mind that comparatively low limits apply to money and securities and to some items such as bicycles, jewellery and boats (see "Personal property").

If an insured peril makes your home UNFIT TO LIVE IN*, and you have to move out while insured damage is being repaired, your insurer will cover any necessary increase in living expenses - including moving costs - so that your household can maintain its normal standard of living. Payment is limited to the reasonable time required to repair or rebuild your home, or for you to settle elsewhere.

If a tenant must leave because of insured damage to your home, your policy will cover FAIR RENTAL VALUE* for the reasonable time required for repairs or rebuilding. Rent-related expenses, such as heating or electricity, that don't continue during reconstruction aren't covered, nor is a lease cancellation.

If you are DENIED ACCESS* to your home by the police or other civil authority as a direct result of damage by an insured peril to neighbouring premises - such as when a burning house collapses and breaks a gas main - you may be reimbursed by your insurer for additional living expenses and/or lost rental income for up to two weeks. Additional coverage may be available in the event of mass-evacuation, for example, following a toxic spill from a train wreck. Check your policy.

* A single claim limit normally applies to combinations of the three circumstances causing the "additional living expenses"; for home owners, the amount of insurance is usually equal to 20% of the building coverage; for tenants, 20% of contents coverage.

A home insurance policy is not a maintenance contract! Home insurance is generally intended to help policyholders cope with the financial consequences of unpredictable events that are "sudden and accidental". If a peril such as FLOOD, for example, cannot be insured against, that's usually because such damage is inevitable. After all, a house built in an area which can be flooded... eventually will be flooded. That's what Mother Nature does on flood plains!

However, water damage arising from a sudden rupture of an indoor water pipe would be a different story. That damage would be covered unless the break was caused by something preventable such as "WATER HAMMER" (prolonged vibration). Damage arising from the FREEZING of indoor plumbing is likewise regarded as generally preventable. If you are away from home for more than four days during the normal heating season, you must drain the plumbing or arrange to have your home checked daily by a competent person to ensure that heat is maintained. However, if freezing-related damage occurred despite such precautions, it would likely be covered. Damage from freezing outside the home is not covered; nor is damage from waves, melting or moving snow and ice, and heaving frost.

Damage by INSECTS and RODENTS like squirrels, mice and rats is not insurable (except for damage to building glass). Many policies also exclude damage by RACCOONS.

Direct damage resulting from the intentional APPLICATION OF HEAT is not covered; for example, clothing shrunk by a clothes dryer. However, if the dryer were to set the clothing on fire and the flames spread to the room and its contents, the resulting collateral damage would be covered.

Damage by snowslide, landslide and other forms of earth movement is not insurable. However, damage from a fire or explosion caused by earth movement would be covered.

(See also "Tenant insurance" and "Condominium insurance")

The personal liability portion of home insurance applies at your home or anywhere in the world to bodily injury you may unintentionally inflict on others - often referred to as "third parties" - or to your accidentally damaging their property. No deductibles apply. Legal defence costs, if there is potential for a liability claim against you, are in addition to policy limits. The choice of lawyer(s) is up to the insurer, however. There is no liability coverage for disease transmission and physical - including sexual - abuse.

For example, suppose a visitor or a household employee were to be injured by slipping on a wet floor in your home, and you were judged to be legally responsible: there would be no deductible and you would be covered for the damages you were legally obliged to pay because of the injury. This coverage does not apply to injuries sustained by you or by members of your immediate household. Also, there's no coverage for "punitive" damages assessed by a court as punishment for your actions; only "compensatory" damages are covered.

Sometimes an insurer may not wait for a claim to occur before taking remedial action, as when a spill of home heating oil threatens to migrate - (see Optional Coverages) to adjacent property. Regardless of the insurance coverage for oil spills on your own property, your insurer may elect to clean up the mess quickly so as to avoid incurring liability for damaging your neighbour's property.

Your boats, golf carts, trailers... and liability

Your liability insurance automatically covers losses arising from your ownership or non-business use of:

a trailer, except when it's attached to a motor vehicle
small boats up to 16hp with outboard motors, otherwise 50hp; sailboats up to 26ft long (see your policy for exact limits)
golf carts on a golf course
self-propelled lawnmowers, snowblowers, garden tractors (25hp maximum, used mainly on your own property)
motorized wheelchairs (3 wheels minimum, designed for disabled persons)
Watercraft and unlicensed motorized vehicles owned by others
You are covered for claims arising from your non-racing, non-business use - with the owner's consent - of watercraft (without restriction as to size or power) and of vehicles designed mainly for recreational off-road use. Such watercraft and vehicles must not be owned by you or any person insured by your home insurance policy, and the vehicles must not be subject to registration. Damage to the actual craft and vehicles is not part of this liability coverage.

Business activities

Home insurance is not business insurance! However, you are insured against liability claims arising from certain activities, such as those shown below. Any other business pursuits require specific insurance arrangements; check the summary page of your policy.

When you rent to others

You are insured against liability claims arising from your rental to others of:

portions of your two- or three-family dwelling, usually occupied in part by you, as a private residence, providing that no family unit includes more than two roomers or boarders
space in your residence for incidental office, school or studio occupancy
up to three garage spaces for cars
Also, you are insured against liability claims that may arise when you occasionally rent out the part of your home that you normally live in.

Other business pursuits

Temporary or part-time business pursuits - such as babysitting - of an insured person under 21 are also covered.

Legal defence and settlement

If someone alleges in a lawsuit that you are responsible for injuring him or her - or for damaging his or her property - your insurer will defend you against any resulting suit for compensation, even if the suit is groundless, false or fraudulent. Of course, the suit has to be related to your insurance coverage.

Note: your insurer has the right to investigate, negotiate and settle any claim or suit as it sees fit.

Voluntary payments

Although you may not be legally responsible for accidentally injuring someone or damaging someone else's property, you may feel morally obliged to make amends. You may wish to reimburse others for direct property damage caused, even intentionally, by a child 12 years of age or younger in your household. That's where "voluntary payment for damage to property" and "voluntary medical payments" coverage can be useful. Although this provision can apply to loss or injury experienced by household staff, members of your household are not covered. The recipients of such voluntary payments must agree not to sue you. Limits for this coverage are comparatively low.

Landlords have relatively few legal obligations to compensate tenants for damage to or loss of their tenants' personal possessions. Tenants, on the other hand, are responsible for harm they may cause to any part of the building in which they live or to others who live or visit there. A fire ignited by a tenant's defective toaster could, for example, gut an entire apartment complex. That's a lot of liability!

If you've just moved into your first apartment, you may think you haven't accumulated anything of real value yet. Think again! A small amount of furniture may not look as if it's worth much, but when you have to replace it with something new, it could break your budget. If you've bought a CD player or furniture on credit and it's destroyed by fire or stolen, you're still responsible for paying the balance to your creditor, even though you now don't have the item. That can hurt, too!

Tenants can choose from a variety of insurance policies that remove much of the worry from renting.

Tenant's improvements coverage is important because policies generally have standard limits that are sometimes not high enough to cover all of the improvements that you may have made to your rented home or apartment. Such improvements could include broadloom, built-in cabinets or sound systems. For these you may need additional coverage.

If you own a condominium unit, you can choose from a range of insurance policies that will enhance the enjoyment of your home. Condominium dwellers experience some of the best aspects of home ownership and renting. As a condominium owner, you have title to your own "unit" as well as a share in common areas such as the lobby, swimming pool, parking garage, or garden. In fact, virtually the whole structure is "common" except, perhaps, for the interior paint and wallpaper and floor covering of your unit! You are a shareholder in the corporation from which you "rent" access to the common areas. However, you and your fellow owners can be held personally liable if things go wrong. A condominium insurance policy is a low-cost way to remove some of the financial worries of condominium ownership.

Contents coverage is as important for condominium owners as it is for all home owners and tenants.

Owner's improvements coverage is an important consideration as most policies have standard limits which may not be high enough to cover upgraded broadloom, for example, or built-in cabinets or sound systems.

Supplemental coverage: apart from insuring any owner's improvements, you may also wish to insure your condominium unit itself so that you will be protected in the event that the corporation's insurance does not fully cover a loss to your unit. Your agent or broker can explain in more detail.

Loss assessment coverage is an important feature of condominium insurance because you share responsibility with others for common property. The insurer will pay, up to a stipulated limit, your portion of any special assessment that is valid under your condominium corporation's governing rules:

if it is due to a direct loss that affects a shared part of the premises (see first paragraph) and if it has been caused by an insured peril if it is due to legal liability arising out of shared ownership of common areas of the condominium premises (for example - to compensate a visitor for injuries incurred by tripping over a frayed carpet in a corridor)
providing that the assessment has not been made necessary because of a deductible in the corporation's own insurance policy.
Normally, the condominium corporation's own insurance coverage will be adequate. Insurance-related special loss assessments seldom occur.

If you own a cottage, not on the premises of your primary dwelling, you may insure it separately or have it insured on the same policy as your home insurance. Coverage is usually more limited than with dwellings that are occupied year-'round. Burglary can be covered, but not theft; in other words, for a claim to be considered, there must be signs of forcible entry and/or exit. In winter, make sure that snow does not accumulate on the roof; a collapse due to the weight of snow would not be covered. Your agent or broker can explain further.

Remember to include outbuildings, fences, and so on when calculating the coverage you need. Insurance to cover vandalism and malicious acts is not automatically included but can often be purchased separately. Although most policies covering cottages do not specify separate amounts of insurance for outbuildings, they do allow up to a specified percentage of the amount of insurance to be used for this purpose.

With cottage insurance, it's particularly important to invest whatever time it takes to be certain that you understand the policy's limits before you agree to coverage. Also, if your "cottage" is really more of a "second home" and has many of the features of a primary dwelling, you may be able to obtain better insurance coverage; again, talk to your agent or broker.

Mobile (not motor) homes and their contents can be insured only for "named perils". Replacement cost insurance is available for contents, but usually not for the mobile home itself. The cost of removing the home out of the way of an endangering peril such as fire or wind can be covered. To qualify for "package"-type coverage, mobile homes must usually be "tied-down" to keep them from shifting during strong winds. Any breaks in the foundation must be protected by a "skirt" to keep out animals and debris.

Some so-called "mobile" homes - often factory-built, "double-wide" assemblies - properly installed on substantial foundations and hooked up to water and sewer systems, may qualify for conventional home insurance.

Most insurance claims are subject to a deductible - the initial amount of every claim that you've agreed to pay. Deductibles help make insurance more affordable for everyone by eliminating minor "nuisance" claims.

If you have suffered a loss for which you are insured, inform your insurance agent or broker of the nature of your claim. If there has been a burglary or theft, the police must also be informed. You'll be required to supply information about the circumstances of the claim as well as reasonable evidence to justify the amount claimed. Your insurer will want to know exactly what was stolen, when you acquired it, and what you paid for it.

A claims adjuster may then be appointed - at no cost to you - to look after the details. You should take reasonable steps to protect against additional damage. If a pipe has burst, for example, shut off the water supply. Don't dispose of damaged goods without first getting your insurer's "okay". In some instances, your insurer may arrange assistance for temporary repairs, such as covering a damaged roof, or boarding over a broken picture window.

If you have replacement cost coverage, some insurers will assist you by providing the cash value of the used item immediately, topping up that amount later when you provide proof of replacement purchase within 180 days of the loss. There are exceptions, however, such as when you have been using an already damaged or obsolete item for some purpose other than its original one (e.g., a defunct refrigerator as a bookcase). When part of a pair or set of items is damaged, the loss will be calculated as a reasonable proportion of the whole set.

An up-to-date inventory of your possessions and a record of their value will be helpful to you, your insurer, police and others in the event of a burglary or fire. After a loss, it could be difficult for you to recall the details of things that are now damaged or missing. Some people like to make a drawer-by-drawer, room-by-room video recording of their possessions; some use a regular camera. An audio cassette recorder could be useful for making a spoken list of collections - books, tools, stamps, and so on. This would capture more detail than you could achieve with a camera. Written or typed descriptions are useful, too; be sure to include makes, models, serial numbers or other identifying marks. Keep purchase receipts for major items. Store your inventory records in a safety-deposit box or another secure location away from your home.

It is a crime to inflate a claim or to file a bogus one. Your local Crime Stoppers will be pleased to receive tips leading to the arrest and conviction of persons engaged in insurance fraud. Reporting is anonymous and rewards are based on the value of funds recovered or fraudulent claims denied. Insurance fraud hurts honest policyholders by driving up the cost of insurance for everyone.

Note: Illegally acquired property is not insurable and some policies exclude smuggled items which have not been declared to Canada Customs. Damage that results from your criminal activity would not be covered, nor would any intentional damage by you.

As well as technical jargon, insurance-industry practitioners often use some every-day words in a very precise way. We hope you find this glossary helpful; your comments and suggestions for future editions are cordially invited.

The term "all risks" describes insurance for losses due to a wide range of causes. Instead of listing each insured peril, such as fire, lightning, and so on, the policy covers all loss or damage to insured property that is the result of any "risk" that is not specifically excluded. "All risks" is a confusing insurance term and does, in fact, incorporate some listed exclusions which allow coverage to be tailored to individual needs and priced more fairly. Perhaps a better description would be "all common risks"!

A "risk" is a chance event that is unexpected and accidental as far as the policy holder is concerned. For example, if a dog's tail sweeps an ornament off a table and onto the floor where it breaks, that is due to a "risk"; the ornament would not otherwise have broken. The gradual wearing out of clothes, however, or the rotting of fruit, are quite natural and expected... and therefore are not insurable "risks".

Business premises, equipment at home

Loss or damage to buildings or structures is not normally insured if they are used for business or commercial farming. Business equipment is covered only while at your home, usually only up to $2,000 in all. There is no coverage for samples and merchandise for sale. If these limits are a problem, you may wish to consider buying an insurance policy - or an endorsement to your home insurance policy - that is designed for home-based businesses.

A "direct loss" arises when insured property or goods are damaged or lost. The term does not include other losses or expenses incurred as an indirect result of the damage, such as having to rent a video camera if your own is destroyed by fire shortly before you leave on a vacation trip.

Your "dwelling" coverage applies to your home and "attached structures" such as a garage or carport. Permanently installed outdoor equipment on the premises, such as a swimming pool and the equipment attached to it, is included. Building materials for use in construction, alteration or repair of the insured dwelling or related structures on the premises are covered, too, if they are on the site or adjacent to it. Theft and vandalism losses during construction are usually not covered.

You may apply up to 10% of the amount of insurance on your dwelling to insure building fixtures and fittings, such as mirrors or air conditioners that may have been removed temporarily for repair or seasonal storage.

You may apply up to 5% of your insurance to trees, plants and shrubs; but there's often a limit for any one item. Lawns aren't insured, and trees, shrubs and plants aren't covered for weather-related damage.

Other buildings and structures

Separate structures and buildings on the same premises as the primary dwelling are also covered for specified amounts, usually up to 10% of the main coverage. This could apply to detached garages, tool sheds, retaining walls, and even landscaping. If 10% seems too low, consider buying additional coverage.

Personal property

Your home owner's policy will cover the contents of your home and other personal property that you own, wear or use (including clothing, cameras, furniture, etc.) while on your premises. It may even cover uninsured personal property of others, excluding roomers or boarders who are not related to you. Your policy will normally cover personal property while it is temporarily away from your home anywhere in the world. Personal property not normally kept at home is not covered. Personal property in a warehouse is usually covered against theft without time limit; but other perils may not be covered, or may be covered only up to 30 days, so be sure to consult your agent or broker.

Relatively small dollar limits apply to negotiable securities, cash, garden tractors, watercraft and computer software; read this section of your policy carefully!

Coverage limits apply also if the following are stolen: bicycles; jewellery and gems; watches; furs; coin, stamp and card collections; and manuscripts. Many insurers no longer limit coverage of silverware. Check your policy.

Reasonably priced supplementary insurance is usually available. These "riders" or "floater" policies provide all-risk coverage for specific items - often fragile and/or valuable -- subject to certain exclusions. Coverage can be world-wide and there's usually no deductible.

Your insurer may try to recover some or all of its costs in settling your claim by suing others responsible for the loss. The effect is roughly the same as if you yourself were to sue the responsible party, except that you are compensated more quickly by your own insurer, often on a replacement-cost basis.

Insurance coverage on dwelling and contents ceases automatically when the premises have been vacant for more than 30 consecutive days without the insurer's prior approval. Coverage for certain perils such as vandalism lapse immediately. A "vacant" building, regardless of the presence of furnishings, is one that you've moved out of, not intending to return. Be sure to notify your insurer before you vacate your home.

"You" and "Your"

When the text of an insurance policy uses the words "you" or "your", it refers to insured person(s) named on the coverage summary page. The policy also includes, while living in the same household, a named insured person's legal - and, sometimes, common-law - husband or wife, the relatives of either, or any person under 21 in their care.

The nature of insurance requires consumers and claimants to supply some relevant personal information to insurance companies. Without such disclosure, insurers would find it difficult to assess premiums and pay claims fairly. If you have any questions or concerns about how the information will be used, it is important to discuss them with your insurer or agent/broker before applying for coverage or submitting a claim. You may wish to determine if your insurer follows a privacy code of conduct based on guidelines established by the Insurance Bureau of Canada and the Canadian Standards Association.

When you buy home insurance, you buy peace of mind. Insurance is a product like any other, and it works better when both sellers and buyers are knowledgeable. If you have questions that are not answered in this pamphlet, all you have to do is ask!

For more information:

Talk to your agent/broker.

Look under "Insurance, Home owners" in your local library for up-to-date, comprehensive books on insurance written expressly for consumers.

Talk to one of the experienced information officers at the Insurance Bureau of Canada.

Here are things you can do to prevent or be ready for emergencies. Are you prepared?