Is your home based business covered under your home insurance policy?

©Insurance Bureau of Canada. All Rights Reserved. A home business: great idea - do I need more insurance? Running a business out of your home? Watch this video to find out how this affects your insurance needs and make sure your business is protected.

When someone cheats, everyone pays

By Meredith Hogan

March was Fraud Prevention month and at Insurance Bureau of Canada, we want to remind you that when someone cheats, everyone pays.When you buy insurance for your home, car or business, you put your money into a pool with many others to help the few every year who suffer financial hardship because of tragedy, such as fire or a car crash.

But what happens when criminals or cheaters take more than their share? Or even fake the whole event? We’re all forced to pay more. It isn’t fair – but it’s a reality.

Insurance Bureau of Canada (IBC), in partnership with member insurers, works to investigate and identify suspected fraudsters. Just this year, the leader of a crime ring that staged a dozen collisions and defrauded insurance companies of approximately $1.5 million pled guilty in a Toronto court. A collaborative effort between IBC, insurance companies, police and dedicated prosecutors connected the dots allegedly linking body shops, towing companies and medical and rehabilitation clinics operating this scam.

While organized crime gets the press, many other forms of insurance fraud happen on a smaller scale but still add up to millions of dollars. Because insurance is paying, in these schemes often shady medical facilities bill for services never provided to a collision victim, or a contractor might pad a repair estimate for property damage. The person making the claim may not even recognize that he or she is part of a scam. But they are.

And then there’s the smallest – and most pervasive - insurance crime of all. Your neighbour’s garage gets broken into and he starts bemoaning the loss of his high-end tools although you could have sworn the drill you borrowed was the cheapest on the market. Lying on an insurance claim may not seem as bad as staging a collision or over-billing but it’s all insurance fraud. And it costs everyone money.

You can reduce fraud by being vigilant and willing to speak up. If you’re in a collision, be aware that everyone involved may not be above board. And if you suspect fraud, call IBC’s tip line at 1-877-422-8477 (it’s anonymous) or submit a confidential tip on line. After all, fraudsters are stealing from the same pool that contains your hard-earned cash.

Some important things to remember. It’s a crime to:

• Make a claim for items not stolen or for items of higher value than those stolen.
• Include pre-collision damage in a claim.
• Exaggerate injuries to collect benefits.
• Make a claim for an event that never happened.
• Offer or accept “free” treatment for an injury unrelated to a collision.
• Charge an insurer for treatments that never happened.
• Encourage anyone to participate in insurance fraud.

5 home repairs you shouldn't ignore

Use our expert advice to stop trouble in its tracks

Too little, too late

By the time this home's owner discovered the water damage, his roof had to be removed down to the rafters.

You might be tempted to put off fixing your home until the economy rebounds. Rebuild the patio? Sure, right after your investments rally. But some problems, if left unchecked, can lead to thousands of dollars in repairs (rebuilding a foundation wall, for instance) and might even compromise your family's health, such as mold contamination. 

The trouble signs are easy to spot, provided you know what to look for. What's more, contractors aren't as busy now, so they're likely to be more flexible on price. Here are the five biggest red flags of home maintenance, with our advice on how to deal with them. No problems? Check out these Simple spruce-ups.

1. Runaway rainwater

"If there are 10 things that can go wrong with a house, 15 of them have to do with water," says Bill Loden, a Madison, Ala., home inspector. Gutters, downspouts, and leader pipes collect rainwater and channel it away from the house. In very wet regions, leaders should extend at least 5 feet from the house. Check the entire gutter system seasonally for proper pitch and for clogs, corrosion, broken fasteners, and separation between connections and where gutters meet the fascia board. When inspecting gutters, extend straight ladders 3 feet beyond the roof at a 75-degree angle to the ground.
The soil around the foundation should slope away from the house at least 1 inch per foot for 6 feet or more. If you have planting beds along the foundation, make sure the grading of the bed, its edging, or the edge of the lawn isn't keeping water from draining away from the house.

 

2. Roof and siding

Roofs are the most vulnerable to water infiltration, given their exposure to the elements and the laws of gravity. On a sunny day, use binoculars to spot cracked, curled, or missing shingles, which are signs that the roof is near its end of life. Also check flashing around chimneys, skylights, and roof valleys, and the rubber boots around vents for cracks.
Siding is also susceptible to leaks, especially where it meets windows and doors. A $5 tube of caulk might save you thousands of dollars in structural repairs. If you live in a cold climate, check the siding under the roof eaves for water stains, which could be a sign of ice damming. Adding attic insulation and sealing gaps around pipes, recessed lighting, and ducts into the attic might help prevent future damming and lower your heating and cooling bills.

 

3. Pest infestations

Termites and carpenter ants gravitate to moist soil and rotting wood, another reason to make sure your gutters are in good shape and soil around your foundation is graded properly. Also keep mulch, firewood, and dense shrubbery away from your foundation.
Once termites infiltrate a home, they can bore through the structure in a few short years. Formosan termites, which are prevalent throughout the South, have been known to rip through studs and floorboards in a matter of months. To detect termites, probe the sill plate (also called a mudsill) that sits on top of the foundation with a screwdriver to check for rotted wood. To check for carpenter ants, look for piles of sawdust along baseboards. Regular termites also shed wings along windowsills, walls, and other entry points.
Rodents gravitate toward disorder and debris, such as leaf piles around the foundation. Plug holes in the siding and the foundation walls with expandable foam. Don't forget to look up for signs of birds, bees, or squirrels in soffits and attic vents.

 

4. Mold and mildew

Even houses in arid climates aren't immune. Hot outdoor temperatures can drive even small amounts of water trapped in the structure to condense on colder interior surfaces, leading to mold. Musty odors, dank air, and family members with chronic runny noses are warning signs. Check under carpets and around windows for visible mold or mildew. Also remove cover plates for cable-TV, phone, and Internet connections, and use a flashlight to peer behind walls and wallpaper for mold.
Avoid mold tests sold at home centers and online. Each of the kits we tested had significant flaws that were serious enough to earn them a Not Recommended Rating in our 2006 tests.
If indoor mold covers less than 10 square feet, treat it yourself with a homemade solution of 1 cup chlorine bleach per gallon of water. Be sure to don an N-95 disposable respirator, goggles, and heavy-duty gloves. Professional remediation is required for larger outbreaks, if the ventilation system is contaminated, or if an allergy sufferer lives in the home.

 

5. Foundation cracks

Some cracks are harmless, but others can mean trouble. James Katen, a home inspector from Gaston, Ore., suggests walking around the house with a No. 2 pencil in hand. Hairline cracks are probably the result of concrete curing or minor settling, he says, and can be filled with an epoxy-injection system. "But if the pencil can go into the crack up to the yellow paint on the pencil, that's a pretty wide crack and might be a sign of a major problem," Katen says. A ruler is another handy tool: Cracks wider than 3/16 inch, even vertical ones, can be a problem. Mark smaller cracks with tape and monitor their progress over the coming months. Also be on the lookout for horizontal cracks or bulging or buckling. Along with expanding cracks, those conditions require the attention of a structural engineer. The longer you wait to correct a problem, the more costly it will probably be.

Consumer Reports has no relationship with any sponsor or advertiser of CTV.

Copyright © 2005-2009 Consumers Union of U.S., Inc.

Largest insured losses in 2011

Costliest year

Economic losses from natural catastrophes and man-made disasters were the highest ever in 2011, at $370 billion, while insured losses totaled $116 billion—the second-highest sum ever—according to Swiss Reinsurance Co. Ltd. The Japan earthquake and tsunami together cost the insurance industry $35 billion, while U.S. tornadoes added more than $25 billion in insured losses, Swiss Re said in a recent report. A photo slideshow counting down the most expensive insured catastrophe losses in 2011 follows. 

10. Storms, United States

Severe weather across several states the U.S. in early April 2011 amounted to $1.5 billion in insured losses and $2.2 billion in economic losses. The storms included high winds, tornadoes, heavy rains and large hailstones. Thirty-six people were injured.
AP photo

9. Storms, United States

Another set of thunderstorms, wind and tornadoes across the U.S. in early April 2011 caused insured losses of $2 billion and economic losses of $3.5 billion. Nine people were killed.
AP photo

8. Earthquakes, New Zealand

Earthquakes that struck near Christchurch, New Zealand, on June 13, 2011, resulted in insured losses of $2 billion and economic losses of $3 billion. One person was killed and 46 injured.
AP photo

7. Floods, Australia

Flooding caused by heavy rains in Australia on Jan. 9, 2011, caused $2.3 billion in insured losses and $6.1 billion in economic losses and left 22 people dead.
Bloomberg photo

6. Hurricane, United States and elsewhere

Hurricane Irene made its way through the Caribbean, U.S. and Canada in August 2011. The storm resulted in insured losses of $5.3 billion and economic losses of $8 billion. The hurricane killed 55 people and knocked out power to more than 7 million homes and businesses.
Bloomberg photo

5. Storms and tornadoes, United States

Severe storms and a major tornado outbreak struck Missouri and other states in mid- to late May 2011, causing $7 billion in insured losses and $9 billion in economic losses in places including Joplin, Mo. The tornado outbreak killed 155 and injured 1,150 people.
Photo by Sisters of Mercy Health System 

4. Storms and tornadoes, United States

Regions of the U.S. including Alabama, Arkansas, Illinois, Kentucky, Tennessee and Virginia were hit by severe storms and tornadoes in April 2011. These storms caused insured losses of $7.3 billion and economic losses of $11 billion. The major weather outbreak resulted in 354 deaths and 2,200 injured.
AP photo 

3. Earthquake, New Zealand

A magnitude 6.3 earthquake struck near Christchurch, New Zealand, on Feb. 22, 2011, causing $12 billion in insured losses and $15 billion in economic losses. The quake left 181 dead and 1,500 injured.
Bloomberg photo 

2. Floods, Thailand

Flooding resulting from heavy monsoon rains hit Thailand in late July 2011, causing insured losses of $12 billion and economic losses of $30 billion. The flooding left 813 people dead.
Bloomberg photo

1. Earthquake and tsunami, Japan

A record-breaking magnitude 9 earthquake and subsequent tsunami struck Japan on March 11, 2011. The most expensive earthquake on record produced $35 billion in insured losses and $210 billion in economic losses. The quake also triggered 200 landslides; destroyed 128,538 buildings; damaged 790,719 buildings, 3,559 roads, 77 bridges, 45 dikes and 29 railways; and damaged nuclear facilities. The disaster left 15,845 people dead, 5,893 injured, 3,339 missing and 400,000 homeless.
Bloomberg photo

Preventing basement flooding

As the official first day of spring is tomorrow we thought it would be appropriate to post a video on some ways to prevent flooding in your basement.

Global warming and changing weather patterns in Canada cause major water damage insurance claims. Today, water is the leading cause of property damage in Canada. Losses related to water damage cost Canadian insurers and policyholders at least $1.3 billion every year. Water and flood damage caused by sewer backup is covered if it is included in your insurance policy. Sewer backups can happen during intense rainstorms when aging municipal sanitary and storm sewer infrastructure becomes overloaded. Spring is often when we get the most amount of rain and snow thaw which is why you should consider the tips in the following video:

Car-B-Que

Having proper insurance gives us all peace of mind. You just never know when something could happen!

You may be the best driver in the world but that wouldn't have helped out a friend of mine in this video. She filled her car up with gas at a local station and the attendant noticed there was some fluid leaking under the car. She decided to drive it to her mechanic's shop to have it looked at and on the way there the car started to smoke and then started on fire. Interesting video as it was all caught on tape.

Thankfully she was covered!

Insurance Literacy Quiz

 
Our homes and cars are two of the largest investments Canadians will make. Learning more about them and their impact on our financial well-being is a wise decision. Test your knowledge and take the insurance literacy test and see how you do.

Click below to go to the test:

http://www.ibc.ca/en/Home_Insurance/Buying_Renewing_Home_Insurance/ins_literacy_quiz.asp

Have a great week!

The Moller Insurance Team