Weather damage: Most Canadians don’t know what’s covered

New poll commissioned by IBC reveals Canadians' lack of coverage awareness

May 31, 2013
citopbroker.com

Many Canadians are unaware of what weather damage is covered by their home insurance policies.

A new national poll conducted by Pollara found that only 36% of Canadians know that water damage due to overland flooding is not covered by home insurance. Perhaps more surprisingly, only 10% know that sewer back-up damage may or may not be covered, depending on the policy. Fully 57% believe that this damage is covered by all home insurance policies.

Insurance Bureau of Canada (IBC) released the results of the poll today in Vancouver at the opening of the Federation of Canadian Municipalities (FCM) Annual Conference.

The poll, which was commissioned by the IBC, also reveals Canadians’ attitudes toward severe weather preparation.

The poll found that the majority of Canadians are not actively preparing for the possibility of bad weather despite an increase in its frequency and severity. Survey respondents, however, were somewhat more positive about their own personal preparations than they were of Canadians in general.

Only 8% of respondents believe Canadians in general are very actively preparing for severe weather. Similar numbers say this about the people in their province (9%) and in their communities (12%). Nonetheless, 22% say that members of their own households have been preparing very actively.
“The insurance industry is on the front lines when disaster strikes so we would like to see these numbers improve,” said Don Forgeron, IBC president & CEO, in a press release.

“We are very aware of the costly and devastating impact of severe weather,” he added, saying that preparation and adaptation are key to reducing losses.  “Insured losses as a result of severe weather have been above or near $1 billion in each of the past four years, but there is no way to measure these huge losses in human terms. Homes flooded, cars smashed, trees uprooted, roads washed out and businesses interrupted all take a toll on the lives of those affected,” Forgeron said.

Some of the other findings of the Pollara research include:

• One half of respondents believe that some damage to their homes due to severe weather is likely to happen in the next 10 to 15 years.
• Almost three quarters are confident that their municipal sewer systems will be able to handle the amount of water produced by storms in the next decade.

Overall, Canadians do not have good awareness of which weather damage is covered and which isn’t covered by home insurance policies. Many answer specific questions incorrectly and significant numbers can offer no opinion at all.
The poll found that:

• A small majority (53%) know that home insurance covers hail damage to roofs
  
• Only 46% know that home insurance generally covers damage caused by a tree destroying their roof as a result of a tornado.
  
• Less than one half (46%) know that damage from landslides and snowslides is not covered.
  
• Less than one half (45%) know that damage from tornadoes (aside from overland flooding) is typically covered by home insurance.
  
• Only 39% know that home insurance does not cover windstorm damage to trees.
  
• Only 9% know that coverage for roof collapses due to snow and ice accumulation depends on the policy. Forty-nine percent believe this damage is typically covered.
  
• Only 7% know that some “acts of God” (natural events that are not preventable) are covered by home insurance while some are not. Forty-four percent believe these events are covered and 35% believe they are not.
  
• Virtually no one realizes “acts of God” is not a term contained in their policies.

The top 10 costliest tornado's in history

The cost of a massive tornado that battered an Oklahoma City suburb could be more than $2 billion, according to a preliminary estimate announced Wednesday by state officials.

We continue to see increased natural disasters across North America. Although we generally see tornadoes in the Southern states we have seen some turbulent weather even in Ontario. Last Wednesday there was a confirmed F2 tornado that touched down outside of Lindsay, Ontario.

Thankfully we haven't had to deal with a disaster of this magnitude in Ontario and hope we never have to. I found a list outlining the most expensive tornado's in history. This recent Oklahoma tornado if estimates are accurate would put it in the top 3!

Rank      Date                           Location                          Cost (2013 USD)

1              May 22, 2011          Joplin, MO                       2.9 billion

2              April 27, 2011         Tuscaloosa, AL                2.3 billion

3              June 8, 1966            Topeka, KS                      1.8 billion

4              May 11, 1970           Lubbock, TX                   1.5 billion

5              May 3, 1999             Oklahoma City, OK        1.4 billion

6              April 3, 1974             Xenia, OH                      1.2 billion

7              May 6, 1975              Omaha, NE                     1.1 billion

8              April 10, 1979           Wichita Falls, TX           890 million

9              June 3, 1980              Grand Island, NE            805 million

10            October 3, 1979        Windsor Locks, CT         800 million

3 home renovations misconceptions

Three Common Reno Myths:

1) “My home will be covered under my original insurance policy during renovations”

48% of Ontario homeowners incorrectly believe they will always be covered by their original home insurance policy while their home is being renovated, and 27% are unaware that moving out for more than 30 days during renovations requires a policy update.

“Upgrades requiring extensive work, such as adding an extension to your home, may require you to change your entire policy to a building under construction,” said Minor. “And, if you’re not living in your home during renovations, it becomes an easier target for thieves and undetected water damage, which is why your insurer may require you to secure a vacancy permit if you move out for more than a month.”

2) “If my contractor is injured on my property while working, his insurance will cover it”

Contractors are trained professionals, but accidents can and do happen. However, 39% of Alberta homeowners incorrectly believe that if a contractor is hurt on their property while working, they will not be liable.

“If a contractor or their employees are injured on your property, you could be liable for their medical bills, lost wages, or damages for pain and suffering – all out of your own pocket,” said Minor. “When choosing a builder, ask to see their public liability insurance certificate. The amount of insurance coverage they have would depend on the type of renovation, the number of employees and cost of the renovation. The higher the limits of coverage, the more protection you would have.”

3): “Renovations don’t affect my insurance coverage”

Many B.C. homeowners don’t know which renovations can decrease their premiums, but are willing to find savings: 78% said they would be likely to make certain upgrades to their home if they could save money on insurance premiums in the longer term.

“Simple renovations like installing security devices, such as alarm systems and deadbolts, or fixing your weathered roof may decrease your premiums,” said Minor.

On the other hand, many B.C. homeowners don’t know the types of renovations that can impact their premiums: 20% are unaware that upgrading their electrical system or replacing a weathered roof could lower their premiums, and 54% did not know that installing granite countertops or expensive appliances could increase their premiums.

“Anything that may impact the value of your home or probability of a claim will also affect what and how much insurance coverage you need,” said Minor. “Although water proofing your basement may not be as exciting as new stainless steel kitchen appliances, these types of renovations can help protect your home and belongings. It’s always a good idea to talk to your insurance provider to understand more about your coverage.”

Follow us on Twitter at @CITopBroker for more insurance tips and advice.
Content taken from:http://www.citopbroker.com/news/mythbusters-home-renovations-5047

FSCO warns of insurance scam

April 9, 2013

 

 Royal Insurance Company and Stock Exchange Insurance aren’t licensed to do insurance business in Ontario, says the Financial Services Commission of Ontario (FSCO).

According to FSCO, the following phone number has been used in relation to this scam: 601-990-6303.

Victims of this scam report being directed to call this number and speak with “Gina” about arranging insurance.

In April 2012, FSCO warned that Royal Insurance was not licensed to do insurance business in Ontario.

FSCO notes that Royal Insurance Company and Stock Exchange Insurance are not affiliated or associated with Royal & Sun Alliance Insurance Company of Canada.

Hyundai and Kia recall 1.7 million vehicles

Recall covers most models from 2007 to 2011

 

Tom Krisher, Associated Press on April 3, 2013

 

 

 

 

 

Korean automakers Hyundai and Kia are recalling almost 1.7 million vehicles in the U.S. and Canada to fix problems with brake light switches.

The recall covers most of the automakers’ model lineups from the 2007 through 2011 model years.

Hyundai Canada said about 255,000 vehicles are being recalled in Canada for the problem, while Kia Canada said just over 106,000 of its vehicles are involved in the recall.

According to the website of the U.S. National Highway Traffic Safety Administration, a faulty switch can stop the brake lights from illuminating when drivers press on the pedal.

Also, the cruise control may not turn off when a driver steps on the brake, push-to-start buttons may not work, and a feature that stops the driver from shifting out of park without a foot on the brake may fail.

“Failure to illuminate the stop lamps during braking or inability to disengage the cruise control could increase the risk of a crash,” NHTSA said in the documents.

Spokesmen for Hyundai and Kia Motors Corp. said Wednesday that there haven’t been any crashes or injuries due to the problem. Both pointed out that the malfunctions don’t occur all the time, and they don’t affect performance of the brakes.

Like many automakers, Hyundai and Kia try to use the same parts in as many cars as possible to get a better price from parts suppliers and make manufacturing simpler. But when something goes wrong, it can cause a massive recall. Both automakers are owned by the same company and use the same underpinnings for their cars and SUVs. The appearance and driving characteristics are different, however.

Hyundai models affected by the brake light switch recall include the 2007 to 2009 Accent and Tucson, the 2007 to 2010 Elantra, the 2011 Sonata, the 2007 to 2011 Santa Fe, the 2008 to 2009 Veracruz and the 2010 to 2011 Genesis Coupe. Kia models include the 2007 to 2010 Rondo and Sportage, the 2011 Optima, the 2007 to 2011 Sorento, the 2010 to 2011 Soul and the 2007 Sedona.

The recall is in addition to a 2009 recall for a similar problem with the brake light switches.

Hyundai and Kia will notify owners and dealers will replace the switches free of charge.

In addition to the problem with the stop lamp switch, Hyundai Motor Co. is recalling about 194,000 Elantra compacts from the 2011 to 2013 model years that were built in South Korea and sold in the U.S. to fix a problem with their air bags.

Hyundai Canada says all Elantras sold in Canada were built in the United States and do not share the problem.

In the Elantra air bag recall, a support bracket can come loose when the side air bags are inflated and cause injuries. In one case, the bracket cut a driver’s ear. NHTSA began investigating the problem last year and traced it to cars that had auto-dimming rear-view mirrors installed after arriving at U.S. ports from South Korea. Technicians installing the mirrors could dislodge the bracket, the investigation found.

In April of 2012, an Elantra owner told investigators a side air bag inflated in a crash and sliced the driver’s left ear. Hyundai said it is aware of only one injury from the problem.

Dealers will install industrial adhesive strips to keep the brackets in place at no cost to the owners. Hyundai will notify owners during the second quarter of this year.

How much does Batman pay to insure ‘The Bat’ vehicle?

A tongue-in-cheek letter from an equally fictitious Progressive Insurance claims agent indicates that the famed caped crusader is paying monthly premiums of more than $258,000.

That’s based on an extraordinary claims history, the letter from Progressive reads.

“We want to point out that the history of claims filed for the Bat Fleet of vehicles points to a tendency toward recklessness, even in light of the dangerous nature of Batman’s profession,” says the Progressive letter to representatives of Batman’s Estate, following the demise of Batman during a recent terrorist attack by his nemesis, Bane.

“Claims in the past five years alone have totalled an astounding $214.7 million, a figure that would disqualify you for coverage by all but the most dedicated of insurers.”

The straw that broke the camel’s back was a $52-million claim for damage to ‘The Bat,’ damaged by an atomic bomb. The claim amount covered specialized features, such as:

•    titanium construction that renders the car bullet- and bomb-proof.
•    a jet engine with high-speed flight capacity.
•    an onboard computer with a direct feed to the mainframe computer located in the Bat Cave.
•    onboard projectiles and missiles, and the ability to self-destruct by remote control in the event the vehicle falls into the hands of criminals such as Bane, the Joker, the Penguin, Mr. Freeze or the Riddler.


By | 28/02/2013 6:57:00 AM

If a meteor explodes in the sky and damages your building, are you covered?

All-Risk policy would offer protection for this rarest of occurrences, say insurers
February 15, 2013

Meteors enter the Earth’s atmosphere as often as five to ten times a year, but few do so as spectacularly as the one that exploded in the sky over Central Russia on Friday.

According to Space.com, it was the largest event of its kind since the Tanguska event of 1908. The meteor entered the atmosphere at a speed over 54,000 kph and according to preliminary estimates exploded with the force of at least 100 kilotons of TNT.

The force of the explosion caused injuries to as many as 1,000 people. Many of the injuries were caused by flying glass from shattered windows. It also damaged approximately 3,000 buildings, including collapsing the roof of a local factory and damaging the walls of the Arena Traktor, home of the local Kontinental Hockey League team.

Property damage caused by a meteor is, however, an insurable risk.

“A commercial property policy provides all-risk coverage that covers property damage and resulting time element loss if there is direct physical loss or damage to insured property unless specifically excluded,” says Timon Mueller, head of property underwriting for the Americas for Allianz Global Corporate & Specialty. “In general, all-risk policies do not have a meteoroid exclusion, therefore direct physical loss or damage to insured property is covered including the resulting time element loss.

Commercial property policyholders in North America would likely be covered in the event of an incident like the one that occurred in Russia. “In the US in general the policies are written on an all risk basis compared to a named perils policy. Named peril policies are more common in Europe,” say Mueller.

Claims from meteor damage are very rare. “This has translated to a low loss history historically for the insurance industry for this peril,” says Joe McKeown, assistant vice president, property, large commercial & specialty at RSA. However there is the potential for large losses from meteorite damage. “We hope the claim experience continues to allow us to provide this coverage to our customers,” he says.