67% of Canadians believe that, when calculating home insurance premiums, insurers consider whether the outside of a house is brick or aluminum siding.
 They are right.
Most insurance companies do use type of construction as a rating
factor when calculating home insurance premiums. For instance,
construction type is factored in when insurers calculate the building
replacement cost (i.e., what it would cost to rebuild the dwelling
with materials of like kind and quality, if it were destroyed). Click here to learn more about how home insurance rates are calculated. Click here to watch the "Home Replacement Cost" video.  |
73% of Canadians believe that the cost of their home insurance is affected by the type of electrical wiring in their home.
| They are right. How
much you pay for home insurance depends on a number of factors
including the kind of wiring you have in your home. Some older types
of wiring, such as knob-and-tube or aluminum, can increase the chance
of fire, especially if the wiring has deteriorated or been damaged
during renovations. Some insurance companies want a guarantee that a
home does not have this wiring, some may give you time to have it
removed, while others might request an inspection to ensure its
safety. Click here to learn more about how home insurance premiums are calculated. |
39% of Canadians believe that their home insurance covers them for damage caused by flooding due to spring run-off – the melting of large quantities of snow and ice.
 They are wrong.
Damage caused by melting or moving snow is generally not covered by
home insurance. Home insurance is meant to help policyholders cope with
the financial consequences of unpredictable events that are “sudden and
accidental.” Predictable or preventable events are not covered. These
are called “uninsurable perils.” Damage caused by melting or moving
snow is considered predictable, so it is an uninsurable peril. For more
information about home insurance, click here. |
50% of Canadians believe that their home insurance doesn’t cover damage caused by an “act of God,” such as high winds.
| They are wrong. There
is no blanket exclusion in a home insurance policy for “acts of God”
or “acts of nature.” In fact, you will not find either of these terms
anywhere in your policy. The truth is, some damage caused by nature and
the environment is covered, and some isn’t.
For example, damage to your home caused by wind
or hail is generally covered by home insurance if the damage is done to
the outside of the building. However, items such as antennas,
satellite dishes, etc., are not covered. The interior of a building and
its contents are covered only if the storm has first created an
opening. Damage caused by flooding is generally not covered (see #1, above). Damage caused by the shaking of an earthquake is also generally not covered, but this type of coverage can be purchased as an add-on to your policy. For more information about home insurance click here.
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60% of Canadians believe that the colour of their cars does not affect what they pay for insurance.
| They are right.
The colour of your car does not affect your automobile insurance
premium. You will not be asked to specify the colour of your vehicle on
your auto insurance application. However, many other variables (such
as your driving record, how expensive it would be to replace your car,
and government regulations) are considered when setting auto insurance
rates. Click here to learn more about how auto insurance rates are calculated. |
61% of Canadians believe that the cost of their home insurance is affected by whether their appliances are powered by gas or by electricity.
| They are wrong. The
types of appliances in your home do not affect your insurance rates.
Insurance companies base the cost of your home insurance on how likely
you are to make a claim and what that claim is likely to cost them.
Generally speaking, the lower the risk, the lower the premium. When it
comes to the choice between gas and electricity, neither power source
appears to be riskier than the other. So, the way your appliances are
powered doesn’t affect what you pay for home insurance. For more
information click here. |
58% of Canadians believe that the contents of their vehicles are not covered by their automobile insurance.
| They are right.
Your automobile insurance covers the driver, the passengers and,
depending on your policy, the car itself. It does not cover the stuff
you carry around in your car. Typically, any sporting equipment (e.g.,
golf clubs), DVDs and MP3 players or other items that may get stolen
from your car or damaged in a collision are covered by your home or
tenant’s insurance. However, if you run a home-based business, your
standard home or tenant’s insurance policy will likely not cover items
related to that business (e.g., products or equipment) if they get
stolen from or damaged in your car. Check with your insurance representative to find out what types of vehicle contents your home or tenant’s insurance covers. |
68% of Canadians think that auto insurance covers damage to their vehicles if they hit a moose, a deer, or any other wildlife.
They are right, if they have Comprehensive coverage.If your vehicle hits a deer, or any other wild animal, any resulting damage to your vehicle is covered, likely under the Comprehensive section of your car insurance policy.
Talk to your insurance representative to learn more. For more information about car insurance, click here
