Steps to selecting the right policy for you.
- Choosing the Right Level of Coverage
- Named Perils, or
- Comprehensive (All Risk, Broad)
- Choosing between actual cash value and replacement cost.
- Determine the value of your home.
- Selecting added coverage
- Sewer back up.
- Guaranteed Replacement Cost - Dwelling
- Single Amount of Protection
- Identity Theft Expense
- Enhanced Special Limits
- Glass Breakage Deductible
- Equipment Breakdown Enhancement
- Property In Storage
- Lock Replacement Expense
- Contingent Building By Laws
- Fire Department Charges
- Outdoor Tree & Shrubs
- Freezer Contents
- Business Package
- Determine If Outbuildings Coverage is Sufficient
- Is the automatic coverage limit high enough?
- Is permission needed for business use?
- Build Your Liability Insurance Protection
- Incidental Office Use
- Babysitting
- Boat and Motor Use
- Personal Water Craft Use
- Swimming Pool or Hot Tub
- Additional Named Insure
Choosing the Right Level of Coverage
Named Perils - This is the type of coverage that is very precise in what events (perils) the insurance company actually covers. The Named Perils are listed below. If one of these things (perils) occur you will have coverage. If the loss was caused by anything not listed, you do not have coverage.
1. FIRE or LIGHTNING.
2. EXPLOSION: This peril does not include water hammer.
3. SMOKE: This peril means smoke due to a sudden, unusual or
faulty operation of any heating or cooking unit in or on the premises.
4. FALLING OBJECT: This peril means a falling object which
strikes the exterior of a building but not objects which strike the
building because of snowslide, landslide or other earth
movement.
5. IMPACT BY AIRCRAFT, SPACECRAFT OR LAND VEHICLE:
Animals are not insured under this peril.
6. RIOT or CIVIL COMMOTION
1. FIRE or LIGHTNING.
2. EXPLOSION: This peril does not include water hammer.
3. SMOKE: This peril means smoke due to a sudden, unusual or
faulty operation of any heating or cooking unit in or on the premises.
4. FALLING OBJECT: This peril means a falling object which
strikes the exterior of a building but not objects which strike the
building because of snowslide, landslide or other earth
movement.
5. IMPACT BY AIRCRAFT, SPACECRAFT OR LAND VEHICLE:
Animals are not insured under this peril.
6. RIOT or CIVIL COMMOTION
7. VANDALISM OR MALICIOUS ACTS: This peril does not
include loss or damage:
a. occurring while the building is under construction or vacant
even if permission for construction or vacancy has been
given by us;
b. caused by you;
c. caused by theft or attempted theft.
8. WATER ESCAPE, RUPTURE, FREEZING:
This peril means;
a. accidental discharge or overflow of water or steam from
within a plumbing, heating, interior sprinkler or air
conditioning system, domestic appliance, swimming pool
or equipment attached and public water mains;
b. sudden or accidental bursting , tearing apart, cracking,
burning or bulging due to pressure of water or steam, or
lack of water or steam, in a plumbing, heating, interior
sprinkler or air conditioning system or appliance for
heating water;
c. freezing of any part of a plumbing, heating, sprinkler or air
conditioning system or domestic appliance within a
building heated during the usual heating season;
d. accidental discharge or overflow of water from a water bed
or aquarium.
This peril does not include damage:
a. caused by continuous or repeated seepage or leakage;
b. caused by backing up or escape of water from a sewer;
c. to an appliance caused by rust or corrosion;
d. occurring while the building is under construction or vacant
even if we have given permission for construction or
vacancy.
9. WINDSTORM OR HAIL. This peril does not include loss or
damage to your personal property or improvements and
betterment's within a building caused by windstorm, hail or
coincidental rain damage, unless the storm first creates an
opening in the building.
Any watercraft you own are insured up to $1,000. if they were
inside a fully enclosed building at the time of loss. Canoes and
rowboats are insured while in the open.
This peril does not include damage due to weight or pressure
or melting of ice or snow, waves, floods whether driven by
wind or not.
10. TRANSPORTATION. This peril means loss or damage caused
by collision, upset, overturn, derailment, stranding or sinking of
any automobile or attached trailer in which the property is being
carried. This would also apply to any conveyance of a common
carrier.
This peril means loss or damage to your personal property
while it is temporarily removed from your premises.
This peril does not include loss or damage to;
a. property in a vacation or home trailer which you own;
b. any watercraft, their furnishings, equipment or motors.
11. THEFT, INCLUDING DAMAGE CAUSED BY ATTEMPTED THEFT.
This peril does not include loss or damage
a. which happens at any other premises which you own, rent or occupy, except while you are
temporarily living there;
b. caused by any tenant, employee or member of the tenant's
household if the part of the dwelling containing the
property insured normally occupied by you is rented to
others;
c. of animals, birds or fish.
12. WEIGHT OF ICE, SNOW OR SLEET. This peril means the
weight of ice, snow or sleet which causes damage to property
contained in the building.
13. COLLAPSE OF A BUILDING OR ANY PART OF A BUILDING.
This peril does not include settling, cracking, shrinking, bulging,
expansion or the falling of ceiling or wall plaster.
14. SUDDEN AND ACCIDENTAL DAMAGE FROM ARTIFICIALLY
GENERATED ELECTRICAL CURRENT. This peril does not
include loss to a tube, transistor or similar electronic
components.
15. FUEL LEAKAGE. This peril means the sudden and accidental
escape of fuel from a permanently installed domestic fuel tank.
(including any attached equipment, apparatus or piping).
16. GLASS BREAKAGE. This peril means breakage of glass which
is part of a building or private structure (if you are a homeowner
or mobile home owner), or part of your improvements (if you are
a tenant or condominium unit owner), on your premises
including glass in storm windows and doors.
include loss or damage:
a. occurring while the building is under construction or vacant
even if permission for construction or vacancy has been
given by us;
b. caused by you;
c. caused by theft or attempted theft.
8. WATER ESCAPE, RUPTURE, FREEZING:
This peril means;
a. accidental discharge or overflow of water or steam from
within a plumbing, heating, interior sprinkler or air
conditioning system, domestic appliance, swimming pool
or equipment attached and public water mains;
b. sudden or accidental bursting , tearing apart, cracking,
burning or bulging due to pressure of water or steam, or
lack of water or steam, in a plumbing, heating, interior
sprinkler or air conditioning system or appliance for
heating water;
c. freezing of any part of a plumbing, heating, sprinkler or air
conditioning system or domestic appliance within a
building heated during the usual heating season;
d. accidental discharge or overflow of water from a water bed
or aquarium.
This peril does not include damage:
a. caused by continuous or repeated seepage or leakage;
b. caused by backing up or escape of water from a sewer;
c. to an appliance caused by rust or corrosion;
d. occurring while the building is under construction or vacant
even if we have given permission for construction or
vacancy.
9. WINDSTORM OR HAIL. This peril does not include loss or
damage to your personal property or improvements and
betterment's within a building caused by windstorm, hail or
coincidental rain damage, unless the storm first creates an
opening in the building.
Any watercraft you own are insured up to $1,000. if they were
inside a fully enclosed building at the time of loss. Canoes and
rowboats are insured while in the open.
This peril does not include damage due to weight or pressure
or melting of ice or snow, waves, floods whether driven by
wind or not.
10. TRANSPORTATION. This peril means loss or damage caused
by collision, upset, overturn, derailment, stranding or sinking of
any automobile or attached trailer in which the property is being
carried. This would also apply to any conveyance of a common
carrier.
This peril means loss or damage to your personal property
while it is temporarily removed from your premises.
This peril does not include loss or damage to;
a. property in a vacation or home trailer which you own;
b. any watercraft, their furnishings, equipment or motors.
11. THEFT, INCLUDING DAMAGE CAUSED BY ATTEMPTED THEFT.
This peril does not include loss or damage
a. which happens at any other premises which you own, rent or occupy, except while you are
temporarily living there;
b. caused by any tenant, employee or member of the tenant's
household if the part of the dwelling containing the
property insured normally occupied by you is rented to
others;
c. of animals, birds or fish.
12. WEIGHT OF ICE, SNOW OR SLEET. This peril means the
weight of ice, snow or sleet which causes damage to property
contained in the building.
13. COLLAPSE OF A BUILDING OR ANY PART OF A BUILDING.
This peril does not include settling, cracking, shrinking, bulging,
expansion or the falling of ceiling or wall plaster.
14. SUDDEN AND ACCIDENTAL DAMAGE FROM ARTIFICIALLY
GENERATED ELECTRICAL CURRENT. This peril does not
include loss to a tube, transistor or similar electronic
components.
15. FUEL LEAKAGE. This peril means the sudden and accidental
escape of fuel from a permanently installed domestic fuel tank.
(including any attached equipment, apparatus or piping).
16. GLASS BREAKAGE. This peril means breakage of glass which
is part of a building or private structure (if you are a homeowner
or mobile home owner), or part of your improvements (if you are
a tenant or condominium unit owner), on your premises
including glass in storm windows and doors.
Comprehensive - This is the type of coverage that starts off by saying every possible event that could occur is insured. There are a number of exclusions, however. The exclusions that I am listing below are simplified for this post and are general in nature. A more detailed list and explanation will be found in your policy and they may vary from company to company. Note that wordings are different from company to company. Part of our job is analyse the differences from company to company and one work can make quite a difference in coverage.
We do not insure:
1. buildings or structures used in whole or in part for any business
or agricultural purpose unless declared on the Coverage
Summary page;
2. property illegally imported, acquired, kept, stored or transported;
3. books of account and evidences of debt or title;
4. any property lawfully seized or confiscated unless such property
is destroyed to prevent spread of fire;
5. losses or increased costs of repair due to the operation of any
law regulating the zoning, demolition, repair or construction of
buildings and their related services;
6. property at any fairground, exhibition or exposition for the
purpose of exhibition.
We do not insure loss or damage:
7. occurring after your dwelling has, to your knowledge, been
vacant for more than 30 days;
8. caused by any nuclear incident as defined in the Nuclear
Liability Act, nuclear explosion or contamination by radioactive
material;
9. caused by war, invasion, act of a foreign enemy, hostilities, civil
war, rebellion, revolution, insurrection or military power;
10. resulting from any intentional or criminal act or failure to act by:
a. any person insured by this policy; or
b. any other person at the direction of any person insured by
this policy;
11. to personal property undergoing any process, including a
process involving the application of heat, or while being worked
on, where the damage results from such process or work, but
resulting damage to other property is insured;
12. any dent damage to the outer metal cover of any mobile home,
caused by windstorm and/or hail, unless the metal cover is
punctured (pierced to make an opening in the metal roofing or
metal siding);
13. caused by continuous or repeated seepage or leakage of water
or steam from within a plumbing, heating, sprinkler or air
conditioning system or domestic appliance;
14. caused by theft or attempted theft of property in or from a
dwelling under construction or of materials and supplies for use11
in the construction until the dwelling is completed and ready to
be occupied;
15. caused by vandalism or malicious acts or glass breakage
occurring while your dwelling is under construction or vacant
even if permission for construction or vacancy has been given
by us;
16. caused by rupture or bursting, backing up or escape of water
from a sewer or drain, sump, septic tank, eaves trough or
downspout, unless the loss or damage resulted from the escape
of water from a public water main, swimming pool or equipment
attached;
17. caused by accidental discharge or overflow of water or steam
from within a plumbing, heating, sprinkler or air conditioning
system, domestic appliance, swimming pools or equipment
attached and public water mains occurring while your dwelling is
under construction or vacant even if permission for construction
or vacancy has been given by us
18. caused by sudden or accidental bursting , tearing apart,
cracking, burning or bulging due to pressure of water or steam,
or lack of water or steam, in a plumbing, heating, sprinkler or air
conditioning system or appliance for heating water, occurring
while your dwelling is under construction or vacant even if
permission for construction or vacancy has been given by us;
19. caused by freezing of a plumbing, heating, sprinkler or air
conditioning system or domestic appliance unless it happens
within a building heated during the usual heating season and
you have not been away from your premises for more than four
consecutive days. However, if you had arranged for a
competent person to enter your dwelling daily to ensure that
heating was being maintained or if you had shut off the water
supply and had drained all the pipes and appliances you would
still be insured. If the loss or damage occurs while your building
is under construction or vacant, you would not be insured, even
if permission for construction or vacancy has been given by us;
20. occurring while the mobile home is being moved, except in an
emergency to protect it when endangered by an Insured Peril.
Moving includes the period of time during which the leveling
jacks or blocks are removed or all utilities are disconnected;
21. due to conversion, embezzlement or secretion by any person in
possession of the mobile home;
22. caused by artificially generated electric current, including
electric arcing, that disturbs any tubes, transistors or similar
electronic components. If loss by fire results, we will pay only for
the resulting loss or damage;
23. caused by snowslide, earthquake, landslide or any other earth
movement. If any of these results in fire or explosion, we will
pay only the resulting loss or damage.
Choosing Between Actual Cash Value and Replacement Cost
Actual Cash Value - If you insure for Actual Cash Value you agree to allow the insurance company to deduct a percentage of the property damaged in relationship to how old or what condition the damaged property was in. For example, if your roof has 25 year shingles on it and they are 30 years old, they are basically worthless. Suppose your rugs are 20 years old and in pretty poor condition. The actual cash value may be only 20 or 30% of what it would cost to replace them.
Replacement Cost - Simply says that new material will be used and there will be no deduction based age and condition of the property damaged. If the siding is blown off they will cover the cost of new siding and pay to remove and replace the siding. The only cost to you would be the deductible.
When you insure for Replacement Cost you always have the option to except the actual cash value if you decide not to repair or replace the damaged property. It would not make much sense for someone with a home in the city not to rebuild if they were insured for replacement cost because it would actually increase the value of the home. Everyone wants a new home. However, sometimes, people who live in a rural setting may prefer not to rebuild because they want to relocate.
People who may be tempted to insure for actual cash value must think about what they would plan on doing if there was only a partial loss. The actual cash value of the home could be $150,000 and a claim may require $50,000 in repairs. The insurance company only has to pay the actual cash value of the damaged property which may be $30,000. The homeowner now has to either invest $20,000 in the home to fix it up, or abandon a $130,000 of equity. If given the choice most people prefer to insure for replacement cost once they understand they can always except the actual cash value.
Determining the Value of Your Home
Regardless of whether you want to insure your home for actual cash value or replacement cost it is important to know what it would cost to rebuild you home right now, on the same location, with like kind of material. The insurance industry has adopted a system which is widely used in the construction industry for estimating residential construction costs. This estimator is used by the construction industry to estimate costs so it is accurate.
To build an average home in any location in Canada is quite easy to estimate.
They begin by determining some basic construction features. How many square feet, square, rectangular, bi level, two story, bungalow, walkout, duplex, roof covering, height of walls, siding, roof pitch,wall construction, basement construction, etc. Costs will vary depending on the location such as rural or urban, and resort.
They then determine if it is low cost, average, superior, or architecturally designed. Each level is based on the type of material used. Average would be, 2x6 walls with pink insulation, lino, carpet, and laminate, with standard cabinets, forced air heat, average light fixtures, standard hot water tank, etc.
One must then look at upgrades. Often a home may be average construction but have some special features like granite counter tops. You would expect to find granite counter tops in superior home but not one with average valued finishing. This allows you to customize the value according to each home.
If there is deck or garage attached one can calculate what it would cost to construct. Same with hot tube or swimming pool.
Add the cost of finishing the lower level which can be customized as to the type of finishing for that level. Some homes have lower cost basement finishing than the rest of the home.
This will give you a pretty close assessment of the cost to reconstruct.
Now add in the cost of demolition. Usually that is 7%.
The software then does its job and value is given. In most cases this is amazingly accurate, if it is done right. If you insure to this value the insurance company usually guarantees that value so that if it is insufficient to cover the real cost they will pay more than the insured amount. There are conditions to this that are covered under a separate post in the block here Guaranteed Replacement Cost - What is it?
Choosing Your Deductible
The basic deductible these days is $500. This means that you pay the first $500 of any claim. The higher the deductible the less you pay in premium. A $1000 is becoming very popular because many companies reduce there premium by 15% to 20% if you choose this option. We are now experiencing changes in the deductible for windstorm and when the results are in I will be posting with more information on this topic.
Choosing Additional Coverage
The following additional coverage are usually optional and must be purchased with an additional premium.
REDUCED GLASS DEDUCTIBLE
(Dwelling Building(s) Only) Form — 0722
If the Coverage Summary Page indicates Form 0722 applies, we
insure glass that forms part of your dwelling or private structure on
your premises, including glass in storm windows and doors against
accidental breakage. We are responsible only for the amount by
which the breakage exceeds the amount of the deductible shown on
the Coverage Summary page.
All the statutory and additional conditions of the policy.
If Water Damage Extension (Limited), form 0116 is shown as an
additional coverage for any location, the form insuring that location is
extended to insure, at that location, against direct loss or damage
caused by the backing up or escape of water from a sewer or drain,
sump, septic tank, eaves trough or downspout connected to a sewer.
This coverage does not apply to loss or damage:
1. caused by flood, surface water, spray, waves, tides, tidal
waves, ice or waterborne objects, all whether driven by wind or
not;
2. caused by water below the surface of the ground, including
water which exerts pressure on or flows, seeps or leaks through
side walks, driveways, foundations, walls, basement or other
floors or through doors, windows or any other openings;
3. occurring while the dwelling is under construction or vacant,
even if we have given permission for construction or vacancy;
4. caused by backup, escape or overflow of water or sewage from
sewers or drains outside your dwelling;
5. caused by continuous or repeated seepage or leakage.
Coverage under this extension is limited to a maximum of $5,000. in
all or other such limit specified on the Coverage Summary page for
this extension.
Coverage under this endorsement is subject to the deductible and all
other terms and conditions of the form it extends.
All the statutory an
Identity Fraud Expense Endorsement:
This coverage reimburses you for
expenses you incur while dealing with your identity fraud claim up to
a 15,000 limit.
The above included limit is a maximum aggregate amount payable in
any one insurance contract period regardless of the number of acts
of identity fraud claims made or of the number of insureds affected.
Definitions:
―Identity Fraud‖ means the act of knowingly transferring or using,
without lawful authority, your means of identity which constitutes a
violation of federal law or a crime or offence under any applicable
federal, provincial, territorial or local law.
―Identity Fraud Occurrence‖ means any act or series of acts of
identity fraud committed by a person or group discovered during the
current policy period.
Coverage:
We reimburse the following costs incurred directly and solely as a
result of the fraudulent use of your identity;
telephone expenses for calls to businesses, law enforcement
agencies, financial institutions or similar credit grantors, and
credit agencies;31
the loan application fees for re-applying for loan(s) due to the
rejection of the original application because the lender received
incorrect credit information;
the reasonable lawyer fees incurred, with prior notice to and
approval by us, for:
your defense against any suit(s) brought against you by
businesses or their collection agencies.
the removal of any criminal or civil judgments wrongly entered
against you; or
any challenge to the information in your consumer credit report.
the reasonable costs or expenses (including mileage,
associated parking costs, taxi cab fees or public transit fees)
incurred for notarizing affidavits or similar documents for law
enforcement agencies, financial institutions or similar credit
grantors, and credit agencies;
the costs for sending certified mail to law enforcement
agencies, financial institutions or similar credit grantors, and
credit agencies;
your loss of earnings by you as a result of time off from work to
complete fraud affidavits, meet with law enforcement agencies,
credit agencies, merchants, or legal counsel;
reasonable costs of obtaining up to two credit reports after an
Identity Fraud Occurrence has been reported to us, for a period
of up to 12 months from the date of the reporting of the
occurrence, but not limited by the expiry date of the policy.
Credit Card, Fund Transfer Card, Forgery and Counterfeit Money:
We will pay up to $1,000. for:
1. your legal obligation to pay because of theft or unauthorized
use of credit cards issued to you or registered in your name;
2. loss caused by theft of your fund transfer cards;
3. loss caused by forgery or alteration of any cheque or negotiable
instrument; and
4. loss sustained through acceptance in good faith of counterfeit
Canadian or United States paper currency.
We do not pay for loss:
a) unless you have complied with all the conditions under which
the cards have been issued;
b) caused by the use of your cards by a resident of your
household or by a person to whom cards have been entrusted.
ENHANCED SPECIAL LIMITS ENDORSEMENT
Form – 0401
If the Coverage Summary indicates ENHANCED SPECIAL LIMITS
ENDORSEMENT is included, your policy is subject to the following
enhancements:
In the policy DEFINITIONS, the definition of ―YOU‖ or ―YOUR‖ is
enhanced by adding the following paragraph:
―In addition, an Insured or parent of an Insured who is dependent on
the Named Insured or his or her spouse for support and
maintenance is also insured while living in a nursing home.‖
The Insuring Agreement for Coverage C – Personal Property for both
Broad Form and Comprehensive Form, Principal Residence riders is
enhanced with the following amendments:
1. Motorized golf carts are considered as covered motorized
vehicles by adding ―motorized golf carts‖ after ―snow blowers‖ in
the third paragraph of Coverage 1.
2. The following paragraph is added to Coverage 2:
―Personal Property of an Insured or parent of an Insured who is
dependent on the Named Insured or his or her spouse for
support and maintenance, while residing in a nursing home, is
covered up to $15,000.‖54
The Special Limits of Insurance Under Coverage C – Personal
Property are increased as follows:
1. Books, tools and instruments pertaining to a business,
profession or occupation for an amount up to $5,000 while on
your premises and $2,500 while off your premises. This applied
to all items whether used in whole or in part for business,
professional or occupational purposes. Other business property,
including samples and goods held for sale, is not insured.
2. Securities and memorabilia collections (such as sports cards or
comic books) up to $6,000 in all.
3. Money or Bullion, gold other than goldware, silver other than
silverware and platinum up to $1,000 in all.
4. Watercraft, their furnishings, equipment, accessories and
motors up to $5,000 in all.
5. Jewellery, watches, gems, fur garments and garments trimmed
with fur up to $6,000 in all.
6. Manuscripts, stamps and philatelic property (such as stamp
collections) up to $3,000 in all.
7. The personal property of a student, insured by the policy, while
at a residence away from home if the student was there at any
time during the 45 days before any loss up to $20,000 in all.
8. Motorized lawn mowers, other motorized garden equipment,
garden tractors and their attachments, or snow blowers up to
$15,000 in all.
9. Motorized golf carts: contents limit.
The limits provided under ADDITIONAL COVERAGES are increased
as follows:
1. Outdoor Trees, Shrubs and Plants: The limit shown for any one
tree, shrub or plant including debris removal expenses is
increased to $1,000.
2. Fire Department Charges: The limit shown is increased to
$5,000. or such other amount as may be specified on the
Coverage Summary Page.
3. Food Freezer Contents: contents limit.
4. Lock Repair or Replacement: The limit shown is increased to
$1,000.
5. Credit Card, Fund Transfer Card, Forgery and Counterfeit
Money: The limit shown is increased to $10,000.
The following is added under ADDITIONAL COVERAGES:
1. Cemetery Property/Headstones: We will pay up to $5,000. for
loss or damage caused by a Specified Peril to grave markers
and mausoleums, that mark the grave of a spouse, child, parent
or grandparent of an Insured.
The following coverage is usually added into most policies without charge. You may have the option to increase the coverage if you feel you need to do so.
Lock Repair or Replacement:
We will pay up to $500 (without
deductible) to replace or rekey, at our option, the locks on the
insured premises if your keys are stolen, provided the theft is
reported to the police or law enforcement agency having jurisdiction
at the location of the theft.
Outdoor Trees, Shrubs and Plants:
You may apply up to 5% in all
of the amount of insurance on your dwelling (if you are a
Homeowner) or personal property (if you are a Condominium Unit
Owner) to trees, shrubs and plants on your premises. We will not pay
more than $250 for any one tree, shrub or plant including debris
removal expenses.
We insure these items against loss caused by fire, lightning,
explosion, impact by aircraft or land vehicle, riot, vandalism and
malicious acts as described under Insured Perils.
Fire Department Charges: We will pay up to $1,000. or such other
amount as may be specified on the Coverage Summary page for
your liability for Fire Department charges incurred when a Fire
Department is called to save or protect property insured by this
policy from an insured peril. No deductible applies to this coverage
Food Freezer Contents: We insure foodstuffs up to $2,000 in all,
but only while contained in a food freezer located within the dwelling,
unit or detached private structure (homeowner only) and only for loss
by spoilage caused by an outside power failure or mechanical or
electrical breakdown of the freezer unit.
We do not insure loss or damage caused by:
1. improper or faulty wrapping, packing or handling;
2. inherent vice or natural spoilage
Inflation Endorsement
Applicable to a Homeowner only and not a Mobile Homeowner.
During the term of this policy, we will automatically increase the limit
of insurance on your Dwelling Building in the following manner:
By an amount up to but not exceeding
2% — 3 months after the current effective date
4% — 5 months after the current effective date
6% — 7 months after the current effective date
8% — 9 months after the current effective date
We will also automatically increase the limit of insurance on your
Detached Private Structure, Unscheduled Personal Property and
Additional Living Expense by the same proportion.
On renewal date we may elect to increase the limit of insurance
shown on the Declaration Page in accordance with the latest 29
published Statistics Canada Building Construction Index and adjust
the premium.
If at your request, we change the limit of insurance on your Dwelling
Building shown on the Declaration page, we will apply the Inflation
Protection on the changed limit of insurance from the date the
change is made.
The following additional coverage are usually optional and must be purchased with an additional premium.
REDUCED GLASS DEDUCTIBLE
(Dwelling Building(s) Only) Form — 0722
If the Coverage Summary Page indicates Form 0722 applies, we
insure glass that forms part of your dwelling or private structure on
your premises, including glass in storm windows and doors against
accidental breakage. We are responsible only for the amount by
which the breakage exceeds the amount of the deductible shown on
the Coverage Summary page.
All the statutory and additional conditions of the policy.
WATER DAMAGE EXTENSION
(Sewer Back-up) Limited Form — 0116If Water Damage Extension (Limited), form 0116 is shown as an
additional coverage for any location, the form insuring that location is
extended to insure, at that location, against direct loss or damage
caused by the backing up or escape of water from a sewer or drain,
sump, septic tank, eaves trough or downspout connected to a sewer.
This coverage does not apply to loss or damage:
1. caused by flood, surface water, spray, waves, tides, tidal
waves, ice or waterborne objects, all whether driven by wind or
not;
2. caused by water below the surface of the ground, including
water which exerts pressure on or flows, seeps or leaks through
side walks, driveways, foundations, walls, basement or other
floors or through doors, windows or any other openings;
3. occurring while the dwelling is under construction or vacant,
even if we have given permission for construction or vacancy;
4. caused by backup, escape or overflow of water or sewage from
sewers or drains outside your dwelling;
5. caused by continuous or repeated seepage or leakage.
Coverage under this extension is limited to a maximum of $5,000. in
all or other such limit specified on the Coverage Summary page for
this extension.
Coverage under this endorsement is subject to the deductible and all
other terms and conditions of the form it extends.
All the statutory an
Identity Fraud Expense Endorsement:
This coverage reimburses you for
expenses you incur while dealing with your identity fraud claim up to
a 15,000 limit.
The above included limit is a maximum aggregate amount payable in
any one insurance contract period regardless of the number of acts
of identity fraud claims made or of the number of insureds affected.
Definitions:
―Identity Fraud‖ means the act of knowingly transferring or using,
without lawful authority, your means of identity which constitutes a
violation of federal law or a crime or offence under any applicable
federal, provincial, territorial or local law.
―Identity Fraud Occurrence‖ means any act or series of acts of
identity fraud committed by a person or group discovered during the
current policy period.
Coverage:
We reimburse the following costs incurred directly and solely as a
result of the fraudulent use of your identity;
telephone expenses for calls to businesses, law enforcement
agencies, financial institutions or similar credit grantors, and
credit agencies;31
the loan application fees for re-applying for loan(s) due to the
rejection of the original application because the lender received
incorrect credit information;
the reasonable lawyer fees incurred, with prior notice to and
approval by us, for:
your defense against any suit(s) brought against you by
businesses or their collection agencies.
the removal of any criminal or civil judgments wrongly entered
against you; or
any challenge to the information in your consumer credit report.
the reasonable costs or expenses (including mileage,
associated parking costs, taxi cab fees or public transit fees)
incurred for notarizing affidavits or similar documents for law
enforcement agencies, financial institutions or similar credit
grantors, and credit agencies;
the costs for sending certified mail to law enforcement
agencies, financial institutions or similar credit grantors, and
credit agencies;
your loss of earnings by you as a result of time off from work to
complete fraud affidavits, meet with law enforcement agencies,
credit agencies, merchants, or legal counsel;
reasonable costs of obtaining up to two credit reports after an
Identity Fraud Occurrence has been reported to us, for a period
of up to 12 months from the date of the reporting of the
occurrence, but not limited by the expiry date of the policy.
Credit Card, Fund Transfer Card, Forgery and Counterfeit Money:
We will pay up to $1,000. for:
1. your legal obligation to pay because of theft or unauthorized
use of credit cards issued to you or registered in your name;
2. loss caused by theft of your fund transfer cards;
3. loss caused by forgery or alteration of any cheque or negotiable
instrument; and
4. loss sustained through acceptance in good faith of counterfeit
Canadian or United States paper currency.
We do not pay for loss:
a) unless you have complied with all the conditions under which
the cards have been issued;
b) caused by the use of your cards by a resident of your
household or by a person to whom cards have been entrusted.
ENHANCED SPECIAL LIMITS ENDORSEMENT
Form – 0401
If the Coverage Summary indicates ENHANCED SPECIAL LIMITS
ENDORSEMENT is included, your policy is subject to the following
enhancements:
In the policy DEFINITIONS, the definition of ―YOU‖ or ―YOUR‖ is
enhanced by adding the following paragraph:
―In addition, an Insured or parent of an Insured who is dependent on
the Named Insured or his or her spouse for support and
maintenance is also insured while living in a nursing home.‖
The Insuring Agreement for Coverage C – Personal Property for both
Broad Form and Comprehensive Form, Principal Residence riders is
enhanced with the following amendments:
1. Motorized golf carts are considered as covered motorized
vehicles by adding ―motorized golf carts‖ after ―snow blowers‖ in
the third paragraph of Coverage 1.
2. The following paragraph is added to Coverage 2:
―Personal Property of an Insured or parent of an Insured who is
dependent on the Named Insured or his or her spouse for
support and maintenance, while residing in a nursing home, is
covered up to $15,000.‖54
The Special Limits of Insurance Under Coverage C – Personal
Property are increased as follows:
1. Books, tools and instruments pertaining to a business,
profession or occupation for an amount up to $5,000 while on
your premises and $2,500 while off your premises. This applied
to all items whether used in whole or in part for business,
professional or occupational purposes. Other business property,
including samples and goods held for sale, is not insured.
2. Securities and memorabilia collections (such as sports cards or
comic books) up to $6,000 in all.
3. Money or Bullion, gold other than goldware, silver other than
silverware and platinum up to $1,000 in all.
4. Watercraft, their furnishings, equipment, accessories and
motors up to $5,000 in all.
5. Jewellery, watches, gems, fur garments and garments trimmed
with fur up to $6,000 in all.
6. Manuscripts, stamps and philatelic property (such as stamp
collections) up to $3,000 in all.
7. The personal property of a student, insured by the policy, while
at a residence away from home if the student was there at any
time during the 45 days before any loss up to $20,000 in all.
8. Motorized lawn mowers, other motorized garden equipment,
garden tractors and their attachments, or snow blowers up to
$15,000 in all.
9. Motorized golf carts: contents limit.
The limits provided under ADDITIONAL COVERAGES are increased
as follows:
1. Outdoor Trees, Shrubs and Plants: The limit shown for any one
tree, shrub or plant including debris removal expenses is
increased to $1,000.
2. Fire Department Charges: The limit shown is increased to
$5,000. or such other amount as may be specified on the
Coverage Summary Page.
3. Food Freezer Contents: contents limit.
4. Lock Repair or Replacement: The limit shown is increased to
$1,000.
5. Credit Card, Fund Transfer Card, Forgery and Counterfeit
Money: The limit shown is increased to $10,000.
The following is added under ADDITIONAL COVERAGES:
1. Cemetery Property/Headstones: We will pay up to $5,000. for
loss or damage caused by a Specified Peril to grave markers
and mausoleums, that mark the grave of a spouse, child, parent
or grandparent of an Insured.
The following coverage is usually added into most policies without charge. You may have the option to increase the coverage if you feel you need to do so.
Lock Repair or Replacement:
We will pay up to $500 (without
deductible) to replace or rekey, at our option, the locks on the
insured premises if your keys are stolen, provided the theft is
reported to the police or law enforcement agency having jurisdiction
at the location of the theft.
Outdoor Trees, Shrubs and Plants:
You may apply up to 5% in all
of the amount of insurance on your dwelling (if you are a
Homeowner) or personal property (if you are a Condominium Unit
Owner) to trees, shrubs and plants on your premises. We will not pay
more than $250 for any one tree, shrub or plant including debris
removal expenses.
We insure these items against loss caused by fire, lightning,
explosion, impact by aircraft or land vehicle, riot, vandalism and
malicious acts as described under Insured Perils.
Fire Department Charges: We will pay up to $1,000. or such other
amount as may be specified on the Coverage Summary page for
your liability for Fire Department charges incurred when a Fire
Department is called to save or protect property insured by this
policy from an insured peril. No deductible applies to this coverage
Food Freezer Contents: We insure foodstuffs up to $2,000 in all,
but only while contained in a food freezer located within the dwelling,
unit or detached private structure (homeowner only) and only for loss
by spoilage caused by an outside power failure or mechanical or
electrical breakdown of the freezer unit.
We do not insure loss or damage caused by:
1. improper or faulty wrapping, packing or handling;
2. inherent vice or natural spoilage
Inflation Endorsement
Applicable to a Homeowner only and not a Mobile Homeowner.
During the term of this policy, we will automatically increase the limit
of insurance on your Dwelling Building in the following manner:
By an amount up to but not exceeding
2% — 3 months after the current effective date
4% — 5 months after the current effective date
6% — 7 months after the current effective date
8% — 9 months after the current effective date
We will also automatically increase the limit of insurance on your
Detached Private Structure, Unscheduled Personal Property and
Additional Living Expense by the same proportion.
On renewal date we may elect to increase the limit of insurance
shown on the Declaration Page in accordance with the latest 29
published Statistics Canada Building Construction Index and adjust
the premium.
If at your request, we change the limit of insurance on your Dwelling
Building shown on the Declaration page, we will apply the Inflation
Protection on the changed limit of insurance from the date the
change is made.
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