Home Insurance – Sewer Back-Up Prevention

Spring!  It is just around the corner!                     

With it comes the certainty of winter run-offs,  rain,  and the possibility of municipal sewers backing up into your basement!

If you are interested in keeping your premiums down, saving money (deductibles $500, $1000 or more) and avoiding immense aggravation, read on -

When many of us were growing up the house basement was often an unfinished play area for the kids or where the camping and hockey equipment and other “junk” got stored.  Sewer back-ups were rare and if we had a major rain and the sewers did back up into the basement, it was often no big deal with a few hundred dollars of clean-up costs.

Contrast that to today with many homeowners turning their basements into luxury living areas often with wine cellars, saunas, exercise rooms, or expensive entertainment centers.  Custom renovations of $100,000+ are no longer unusual!

Combine this with heavier rainfalls, aging infrastructure, greater housing density, and you can see why our sewer systems are often challenged with resulting sewer back-up losses now at an all-time high.

Imagine peering in to your basement after a heavy rain to see 8” of putrid sewage water – the drywall, your custom bar, your sound equipment…days of clean-up, followed by months of paperwork, contractors, insurance adjusters, your deductible, increased premiums – not a pretty scene.

Or, you could consider some relatively inexpensive measures or devices to help reduce the chance of a sewer back up. First, talk to a qualified plumber before you install any sewer back-up protection devices.  Plumbing fixtures such as toilets, sinks, showers, floor drains and washing machines that are set below ground level require special protection.

Consider the following devices to see how they may be of help –

Screw Cap – If you’re having trouble with your floor drains, a screw cap installed upstream of the trap seal of the floor drain may be all you require.

A CSA (Canadian Standards Approval) Inline Sewer Backwater Valve should prevent sewer backup if you maintain it properly and have it checked regularly.

Gate Valve. Where a backwater valve isn’t sufficient protection, you may need a gate valve and a backwater valve for basement plumbing fixtures that are subject to backflow.

There may be other options available to you as well.  The key here is to try to prevent the damage from happening in the first place.

Sure, maybe you feel comfortable with just relying on either full or partial sewer back up insurance.   When you consider the nature of this disaster, however, if there ever was a case for “an ounce of prevention is worth a pound of cure”, it is here.

Sincerely -       The Insurance Advisors @ Guthrie Insurance Brokers Ltd

Toronto – (416) -487-5200  – Richmond Hill – (905) 313-8481

www.guthrieinsurance.com     info@guthrieinsurance.com

E & O E

Boat and Watercraft Insurance – Exclusions

Boat and Watercraft Insurance – Discussion on exclusions

Whether you own a 60’ luxury yacht, a sailboat, a 19’ runabout or a personal watercraft, when most boat owners arrange their insurance they tend to first be concerned about the premium and then in doing business with a reputable broker or insurer.  Often, the expectation is that all boat policies are created equal or at least “pretty much” the same.  Well, the truth of the matter is they are not. If boats aren’t already expensive enough to own and maintain, how would you like to suffer an unexpected and uninsured loss? If you think you are “fully” insured, read on –

Although some insurers will offer a very basic “major perils” e.g. fire, lightning, and explosion, type policy, which is seldom recommended, for the purposes of this discussion we will focus on the most popular type of hull (just the vessel) coverage commonly referred to as “all-risk”. The quotation marks are used because strictly speaking there is no such thing as purely all risks i.e. insuring everything.  Every “all-risk” policy is always subject to the exclusions the particular insurer will not underwrite or provide coverage for and they are specified in the policy.

Under the typical “all-risk” policy, rarely will you run into problems with most of the common causes of loss such as fire, theft, explosion or hitting submerged rocks or other objects.  It’s often the “less than obvious” losses that can cause you grief.

Consider for example an exclusion found in one popular watercraft policy – “excluded…transportation of the vessel overland on public roadways while in contravention of the applicable highway traffic act”.  Sounds simple.  Nobody is going to purposefully break the law, right?  So, you’re towing your $50,000 bass boat and, sure we’re all human, you miss a stop sign, hit another vehicle and cause considerable damage to your car and write the boat off.  You are convicted of failing to stop (Highway Traffic Act).  Well, with the same coverage, your car, and the other person’s car are insured.  Your boat?  Not so lucky.  You’re out $50,000 and if you had borrowed the money it will be even more painful to pay it back over the next 10 years sans (without) boat.

Depending on where your boat is stored raccoons, mice, or other vermin causing damage could be a problem.  Imagine the damage caused by a family of raccoons “snowbirding” for the winter in your comfy, tastefully decorated, cabin while your cruiser has been duly stored away from October to April.  Insured?  Some policies yes, some no.

Recently, friends were cruising on Georgian Bay with their twin engine, 3 year old cruiser in 300’ of water.  Upon hearing a sudden “bang” it was discovered a propeller shaft had literally broken away falling through the hull and leaving a gaping hole with water gushing in.  Naturally they called in help then headed for the nearest shore with the remaining prop, about 20 miles away, as the boat began to fill with water.  Their only choice was to beach it on rocks.  For removal off the rocks, towing, and repairs the cost was over $50,000.  Cause?  Latent defect or mechanical breakdown.  Covered?  In their case, yes, however with most insurers this is a standard exclusion.

How about the cottage situation?  You occasionally rent it out (make sure you advise your insurer).  “Can we use your runabout as well” they ask.  The pressure is on so you reluctantly OK this because they have experience.  A few days later the renters call to ask if the boat is insured because they have smashed it up on a shoal.  Good luck with this one and hope you have read your policy or have a huge damage deposit as it’s not likely insured.

Speaking of cottages, sure you take care to lock and chain your two PWCs e.g. Seadoos – $40,000 + worth of fun, on their ramp by the dock.  When you arrive the following Friday they’re both gone!  Chains cut and left dangling.  You call the policy then your insurer in a panic and are shocked and sickened to find you are without insurance!  Another exclusion found in a popular insurance policy states “we do not insure theft unless it occurred following illegal and forcible entry or exit to a fully enclosed locked building…”.  An expensive lesson!

The list goes on with special phraseology in many areas pertaining to freezing, maintenance, mechanical breakdown, impaired boating, zebra mussels, reasonable care, and so on.

Exclusions exist for several different reasons.  Often to help keep premiums down (fewer claims paid=lower premiums), especially for other policyholders who might not have the same risk or concern and don’t want to have higher premiums because of it, or because they feel it is against public policy (some insurers cover damage caused by impaired boaters and others don’t), or because they feel the risk should be  controllable by the policyholder, or because it is generally held to be uninsurable (nuclear risk).

The point of this discussion is not to worry clients or criticize insurers.  It is to encourage anyone who invests in a policy to insure a boat (or anything else for that matter), to read, fully understand and be able to interpret these exclusions as to what might actually happen given the use of the vessel.

Be an informed consumer.  Read your policy.

Stay tuned for the next article on boat valuations and basis of claim payments

The Insurance Advisors @ Guthrie Insurance Brokers Ltd

www.guthrieinsurance.com -  info@guthrieinsurance.com

Home Insurance – Photo Inventory

After many years of procrastinating I finally got around to doing one of the most important things that anyone with a household full of “stuff” should do.   A full and detailed photo inventory.   Sure “it will never happen” but when this is properly done and saved, and periodically updated,  it will help immeasurably in the claim settlement process following a major loss, if it ever does!

Over the holidays I found a bit of time on my hands and what better way to spend it than acting on the old Scout motto of  “Be Prepared“.  Especially with many families having at least one digital camera, this process has been made much simpler than just a few years ago with the film based cameras (should still be done, just print and store safely).

If either you, or someone you know, has ever suffered through a major claim such as a fire, you will appreciate that most of the challenge is trying to remember everything you own!  Sifting through charred ruins is an impossible task even if you could get permission.  Think for a moment.  What items and what is the is the value of everything in your home?  Bathroom(s) vanity cabinets?  Kitchen? – pots, pans, glasses, china, plates, cutlery…not to mention foodstuffs.  Under your beds?  Attic?  Closets?  Bedroom drawers?  Garage?  Basement?  Collectibles?  Valuables?  The value of the “stuff” that most of us accumulate over many years can be considerable, and unless you can remember it, you may miss being properly compensated for it when it’s gone.

So, set aside an hour, grab your digital (or other) camera and “get ‘er done”.  The suggestion is to take a picture of virtually everything in your home (house, condo or apartment).  Take a pic from every corner of every room to get the major pieces of furniture, pictures, drapes, etc.  Then, take additional pictures of each open drawer, cupboard or closet.  Don’t forget outdoor sheds or lockers.  If you’re energetic or the creative type, consider using video and talking into the camera to describe in detail additional features or attributes about the subject.  You might consider taking individual shots of specific valuables such as jewellery, art, or collections.

The same thing should be done at your cottage or even RVs such as motor homes or trailers and even boats and yachts.

Once all done, make certain you store the pics in a safe place.  If saved on your computer, do make sure a back-up copy is kept off-site.

Now, just a photo-inventory will certainly help you remember things but your insurer may still need additional information to support ownership or valuations.   The photo of Aunt Harriet’s $50,000 necklace you snapped when she last visited just may not cut it!  This is where bills of sale may still be required, especially if the item is not consistent with the rest of your household or the value cannot easily be substantiated.   Appraisals may also be necessary, especially with “one of a kind” pieces of art or jewellery.  How would anyone know what it is worth once it’s gone without some kind of third-party evaluation?

Now, this may sound paranoid and the likelihood that you will ever have to rely on this is remote.  However every year thousands of Canadians suffer very serious home claims.  Just a bit of preparation could help save thousands of dollars and make working with the insurance company claims adjusters so much easier.  This is especially so considering the frame of mind you and your family would be in after suffering through such a tragedy.

So, charge up the camera battery, set aside an hour or so, and take this simple step to help preserve the monetary investment in everything you have worked so hard for.

Signed – The Insurance Advisors @ Guthrie Insurance Brokers Ltd

www.guthrieinsurance.com   info@guthrieinsurance.com

House Insurance – Fire Safety from Guthrie Insurance – www.guthrieinsurance.com

A few years ago I received a call from a distraught client who also mentioned he was embarrassed over having to make this call.   As the story goes, he explained he arrived home on the Friday night late from work.  Distracted he was greeted at the front door by a throng of people – wife talking to a neighbour – kids coming – kids going – dog barking – music too loud.  He turned around to see the pizza delivery guy with an “extra-large” in his hands for which he took and handed over the money.    Deciding to wait until things calmed down a bit and without thinking he turned on the oven and slid the pizza box in to keep it piping hot.  After changing, what seemed to be just “a few minutes” later, the family re-grouped in the kitchen and the door to the oven was opened in anticipation of a typical Friday night dinner.

Which is when all hell broke loose. The moment the oven door was opened the pizza box burst into flames, and shot out the front of the oven burning all of the hair on his forearms.  In seconds the kitchen filled with acrid smoke and the flames started to melt the veneer on the kitchen cupboards above.  The smoke detector went off filling the room with an ear-piercing screech making it more difficult to focus.  Fortunately, he had thought to have a fire extinguisher, fully charged, within easy access.   In his panic it was pulled from the wall (with the bracket attached) and the fire promptly extinguished.  All of this only took about a minute. As it turned out the damage wasn’t much more than his deductible and it was decided to do the clean-up and cupboard refinishing on their own.

The point of this story is to illustrate that we are all human and therefore not perfect and are occasionally prone to doing stupid things or being forgetful.   With the festive season now upon us, we thought it would be timely to give everyone a few reminders that might help eliminate the chance of a fire.   So, here you go –

Have a properly rated fire extinguisher always at the ready and nearby for small fires.  At least one in the kitchen in an obvious place (not under the sink at the back).  Perhaps another in the furnace room and garage.

Demonstrate to everyone in the house how to use it.  Even the kids.  If a fire breaks out is not the time to try and figure out how to work it!

The No. 1 ignition source for fatalities in preventable house fires is still caused by smoking materials, such as cigarettes.   Hard to believe in this day and “information age” but sometimes truth is stranger than fiction!  Enough said (we hope).

The No. 1 ignition source for all preventable house fires is caused by cooking appliances catching clothing on fire or igniting oil or other flammable liquids. Whether you are deep-frying french fries on the stove or enjoying a fondue at the dinner table, this should be by adults only and always with extreme care.   Read directions very carefully and prepare yourself for immediate action in a worst-case scenario (time to double-check the fire extinguisher).

Candles.  Dangerous at any time but they are often used more during this holiday season.  We know it seems obvious but don’t put them near anything flammable.  Also, don’t forget to put them out when you leave or go to bed, and please keep kids, clothing, pets, and even some people, away from them.  Even better, consider the new  “LED” style which look like candles but are small electronic bulbs with no flame.

Do we really need to mention smoke detectors again?  Please make sure they work and batteries are good. Good time to check your CO detectors as well.

Wood burning stoves & fireplaces – Take extra care and know how to safely operate and maintain.   Don’t pile wood near them (you would be surprised).   Watch your clearances.   Make sure chimneys are clean.   Watch the big log you load into the fireplace doesn’t come rolling out when it’s burning!   Use the screen & glass doors.

Gasoline & other flammables – With snow blowers being prepared refueling should be done outside, not in the garage.  Fuels should also be stored as far away from the house and garage as reasonable, ideally in a locked shed or storage bin.

Liquid Fuel Lanterns – popular especially during black outs.  They may burn kerosene, alcohol, or similar fuels.  Again, please be careful.  You knock one of these things over spilling a liter of burning kerosene across your living room broadloom and you know you’re in for trouble.

Finally, review fire safety with the family, prepare an evacuation route, especially from the sleeping areas, and practice it!  If you are in a deep sleep and awakened by the sound of smoke detectors or the smell of smoke you may only have seconds to act.  This is because the loss of oxygen from the smoke can quickly overcome you and affect your ability to think clearly enough to escape.

If the worse does happen, put your plan into action.  GET OUT – freezing cold or not!   Call the fire department.  Call on your neighbours, friends or family for some temporary help.  Contact your insurance broker.  Depending on the extent of the fire, prepare yourself mentally for the most-certain aggravation and frustration involved in getting your lives back to normal.  Do understand that insurance companies really are interested in getting you looked after as fairly and equitably as possible but do need to follow standard protocol and procedures.

We sincerely hope you will find this information useful.

Have a safe and enjoyable holiday season!

Sincerely -       The Insurance Advisors @ Guthrie Insurance Brokers Ltd

Toronto – (416) -487-5200  – Richmond Hill – (905) 313-8481

www.guthrieinsurance.com -  info@guthrieinsurance.com

E & O E

Car Insurance – Accidents – Premium Rating – “I Slid On Ice – It’s not MY fault!”

Winter weather and icy roads in particular seem to cause Ontario driver’s considerable grief every year.  Some feel it is just not “fair” that losing control on black ice, smashing your car and perhaps others, should count as an at-fault accident, often with resulting premium increases.

Following hundreds of conversations with clients over the years it seems that there is still considerable misunderstanding as to what constitutes an at-fault situation and what is considered not-at-fault.   In every car accident there is always someone who is determined to be at-fault – either partially or entirely.  It is this degree of fault that determines the applicable coverage, deductible, and of course future premiums.

The Insurance Act and the Fault Determination rules actually determine the degree of fault.  You can refer to the fault chart at – www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900668_e.htm to best understand how it applies in about 40 illustrated crash situations.  It is applied regardless of weather, visibility, point of impact or actions of pedestrians and is allocated to each driver/vehicle-owner based on the closest scenario resemblance.

Ultimately, motorists are required to maintain control of their vehicle at all times and obey the laws.  If you do not, and a crash results, you cannot blame it on icy roads, fog, blinding sunshine, or another driver who should have seen you.  Sometimes almost “impossible” situations arise.  Imagine cruising down the highway, cruise control set at 110 K, nice sunny day and you hit a piece of furniture lying on the road that fell off  some “idiot’s” trailer or an immense pothole.  Crunch – $2,000 damage!  And you guessed it…these are considered at-fault accidents!  Please don’t shoot us; we’re just the messengers.

If you have a crash and there are damages or injuries and you are held entirely or partially at fault (any degree of fault above “0”) it will count on your insurance record.  The impact on your premium, however, depends on several factors such as “claims forgiveness” or if there were previous at-fault crashes.  The best-case scenario is that the insurer will record the at-fault accident and your premium will not be affected, or at least a marginal premium increase.  The worst case scenario, especially if it is a 2^nd or 3^rd incident, is premiums that can easily double or triple, especially so if it is combined with a serious conviction such as careless driving.

If the accident is determined to be not-at-fault e.g. you were rear-ended, there is no impact on your premium, however it is still recorded as part of your insurance history and needs to be mentioned when applying for insurance.

“How long do accident claims stay on my record”. The official time frame pursuant to the standard Ontario Application for Automobile Insurance (OAF 1) is 6 years.  That means that insurers consider ALL accidents and insurance claims arising from the ownership, use or operation of ANY automobile for a 6-year period (even though it may not affect your premium).  On new applications ALL claims, regardless of type or fault, must be disclosed to the insurer, regardless of whether there is any premium impact or if you feel it was not-at-fault.

Whether or not police charges are laid following a crash is not necessarily an indicator of fault.  If you have slid on ice into the back of another car the officer may decide not to charge you because of weather conditions, often saying “you’re not at fault”.  Count yourself lucky that you don’t have to go to court or get stuck with a nasty conviction, but in terms of insurance legislation, it is still an at-fault accident.

Important: Did you know that if you lend your car, you are also “lending” your insurance.  If they are involved in an at-fault accident, it is your policy and insurance record that is affected, your liability insurance that pays if there is a lawsuit and your deductible and collision coverage that looks after your car?

Hit and run collisions e.g. car parked & hit by unknown driver, are treated a bit differently.  If you do not report it to the police, usually within 24 hours, you will find insurers will presume it was really not a hit and run and record it as an at-fault accident.  Calling the police when someone has smashed your car then left the scene is the logical and appropriate measure to take.

Many types of claims have no bearing on premium rates.  Accidents, which are not-at-fault, do not fall under your collision insurance but rather under your “direct compensation property damage” (DCPD).  When another identified, Ontario licensed insured vehicle is 100% at fault, your insurer still pays the claim to you (and cannot recover from the at-fault motorist!), generally with no deductible, and does not impact your premium.  Comprehensive type claims such as fire, thefts, vandalisms or hail damage, also will not affect your premium.  Have too many though and your insurer may require a higher comprehensive deductible or refuse entirely to continue this optional coverage.

Tip:  Did you know that if your car was stolen by another household member or certain employees and damaged or destroyed you are NOT covered under comprehensive coverage?  Say “goodbye” to the unscrupulous relative who has just overstayed their welcome!  There is coverage for this, however, under “all perils” (combines collision with comprehensive coverage), typically at higher deductibles.

At Guthrie Insurance Brokers – www.guthrieinsurance.com, our endeavour is to help keep your costs as low as possible using effective and sound long-term claims management strategies.  This sometimes means some “short-term pain” for “long-term gain” by looking after minor claims on your own.  Consider the unfortunate motorist who backs into a concrete pillar causing $800 damage to their car (no damage to pillar).  Certainly, they are entitled to file a collision claim, pay their $500 deductible, and have it looked after.  They might not even see an increase if it was their first incident.  If they later had a 2^nd more serious crash any time over the next 6 years however the premium increase would likely far outweigh the cost of looking after the first incident on their own.   As every situation is unique each must be carefully considered on it’s own circumstances.

The Insurance Advisors @ Guthrie Insurance Brokers Ltd – www.saveonautohomeinsurance.com

Ontario Car Insurance – Is there a move in your future?

A call received from a concerned client last week reminded us how important it is to consider all insurance implications when moving. Our clients are now retired and wanted to downsize a bit and move into the city (Toronto) from the suburbs (Ajax).  Certainly, we got them looked after with a new condominium policy arranged weeks before the move.  We also changed the rating on their cars to pleasure use only.  What was not anticipated was the difference in their car insurance premiums based on a higher rated area.

In their case, the premium for both of their vehicles went from $2494 annually to $3181 including the change to strictly pleasure use!  “Why? Our driving records have not changed and we’re using our cars even less.   We really had not prepared for his added expense…Ouch!”   If the move had been the other way, they would have been pleasantly surprised with lower premiums but going from a lower to a higher rated territory can be expensive.

Ontario is divided into many different rating territories with Toronto further sub-divided into even more.  These territories reflect auto insurance companies claims experience for such things as accidents, vandalism, thefts, traffic density, and other factors.

So, if you’re considering a move and, like most of us, are carefully watching your budget (especially with more limited retirement income), keeping this in mind and checking on the new territory rates well before hand will help avoid this unexpected “after shock”.

Courtesy of The Insurance Advisors @ Guthrie Insurance Brokers Ltd

www.guthrieinsurance.com

Car Insurance – Putting your car in storage?

Winter is fast approaching and calls from our clients are already coming in.  “We’re heading south for the winter and won’t be using our car.  What is the best way of saving some premium?”

Like most things to do with insurance, every situation is different and the answer is sometimes not so simple.

First, most insurers will allow credit when a vehicle has been put in storage.  The typical minimum duration is 45 days.   Store your vehicle for 6 months and the savings can really add up, so this should be taken advantage of.

If you have more than one car and only one is being stored, if you’re driving one South for example, it is usually a simple matter of removing “all coverage except comprehensive (i.e. fire, theft, vandalism, etc)” on the stored vehicle.  The insurer will calculate the refund based on the time left until your next expiry date and send a refund.  It is absolutely critical that you arrange ahead of time to add the coverage back on, obviously before the vehicle will be used.  Usually, it’s just a phone call.   Do note that new rates, if they have changed, will apply.

Human nature being the way it is though, care still needs to be taken when storing your car.  A situation arose a few years ago when a client forgot to set the parking brake on a sloping driveway.  The car, with NO collision or liability insurance on it, rolled out of the garage, down the driveway, across the road, and hit a parked car.  It was uninsured (and expensive), but could have been much worse had a pedestrian been involved.

If you only have one car be extra careful!  By removing “everything except comprehensive” you also remove the very important Accident Benefit/Medical coverage, which then eliminates any “automobile related” bodily injury protection such as if you were injured by a car while crossing the road.  When you only own one car and it is being stored, it is best to use the “temporary suspension” option, which eliminates liability and collision coverage but preserves much of the Accident Benefit protection.  The only drawback with this option is that the insurer does not calculate the premium refund until the previous “driving” coverage has been restored.

** PS – You might save even more by “storing” some of your services.  Why not call your cable/internet provider, your delivered newspapers, etc., to see if you can reduce/remove services while you are away.  Better in your pocket, then theirs right?

 

The Insurance Advisors @ Guthrie Insurance Brokers Ltd – www.guthrieinsurance.com

Car Insurance – It’s just “a few” minor tickets AND no points? What’s the big deal and WHAT is with my premium? Ouch!

Sure, we’re all “great” drivers right?  Not paying attention to your speed, not noticing the radar trap ahead, or the cruiser behind you, however, means you might not be paying attention to other things that could end you up in a serious crash.   It’s all about paying attention and being aware while you are behind the wheel.

Fair or not, agree or disagree, statistics show that drivers who get tickets are more likely to be involved in a crash.  For this reason, insurance companies give the most preferred rates to those who do not get convictions. Whether this is because of respect for the law, good driving, or just good luck, conviction-free drivers continue to have the fewest crashes and pay less for their insurance.

Even the best of us occasionally get distracted and it can be costly.  Consider the driver who only gets one minor i.e. no points, speeding, or similar infraction per year over 3 years. Based on current Toronto rates (11/09) for a mature driver (50+) with no claims and driving an ’09 Buick to work (and with no other discounts), the base premium with NO tickets will be in the area of $2200 annually.  Now, add one minor ticket per year and that same situation results in an annual premium of $4500. Add one more ticket for a total of 4 over 3 years and that premium goes to a whopping $5969!. And, these are minor, no demerit point tickets such as speeding 10 over (even if the police officer says “it won’t count”…it does!).  More serious convictions e.g. school bus, or criminal code convictions e.g. over .08, can send your premiums into the stratosphere.   We’re pretty sure you have something better to do with $12,000 right?

Sure, there are always exceptions – drivers who get tickets yet never had a crash or those that have the occasional crash, who have never have had a ticket.  The bottom line is that insurers need to rely on actuarially sound statistics and the conviction to claims relationship continues to make this a major factor in determining equitable insurance rates.

So, it’s all really very simple.  Pay attention and don’t break the law.  Think about how much more money you will have for your retirement savings instead of sending it to your car insurer!

Sincerely – The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto – (416) -487-5200 – Richmond Hill – (905)
www.guthrieinsurance.com – info@guthrieinsurance.com

Homeowners Insurance – Water Damage

With changing weather & aging infrastructure, home water damage claims are at an all time high with causes ranging from sewers backing up to overflowing eaves.  Here are some timely tips from our colleagues at RSA Insurance to help you avoid or reduce the chances of getting stuck in what is usually a very messy situation.

RSA Water Damage Brochure

 

Running a business from your home?

If you operate any type of business or commercial activity from your personal residence, your home insurance policy is most probably not protecting you.  The typical personal property policy was never intended to cover any kind of business operation and therefore has minimal, if any, coverage for business stock, business property and, most importantly,  liability.

Many insurance companies offer reasonably priced “home business” policies or extensions generally as an option under your home insurance.   Premiums typically start at about $150 and increase from there depending on the type of business and risk involved.

For the amount of premium involved, it is just not worth risking everything in the event of an uninsured loss.  Liability losses in particular e.g. “slip & fall” or product related, can be substantial and leave you financially ruined even if you are “accused” of causing injury or damage.  Liability insurance also covers the cost to defend you whether groundless or not.

Ryan Guthrie, CAIB, CIP – www.guthrieinsurance.com