Open Magazine - Index

Open Magazine - magazine - Index

Proper
Property
Insurance
It was past midnight and there was a flashing light outside
my window, not entirely unusual because I lived near a
hardware store and lumber yard; trucks were known to unload
at all hours of the day or night. But this seemed different. The
light was bright, flashed at odd intervals and had been going on
for a long time. I finally looked outside and was stunned; the
house across the road was on fire! Just as I absorbed this reality,
the window of the house that I was staring at exploded and fire
leapt out, expanding as oxygen fed the flames. It was a tragedy
that I’ll always remember because of the life that was gone
too soon, the smell that lingered in the air, the burnt out shell
of the house and the family coping with the devastating loss.
On reflection, it made me more aware of the need to provide
my family with protection against potential physical, material
and financial losses. I read through my insurance coverage that
night and made sure that I read each update.
What is insurance?
Insurance is a general pool of funds to
which all policyholders contribute each
year and from which a few receive funds
due to claims. Statistics, combined
from the Insurance Bureau of
Canada and the Canadian Life and
Health Insurance Association,
indicate that Canadians spend
approximately 50 billion
dollars annually on insurance.
According to Statistics
Canada, it is the fifth–largest
expenditure families make.
Homeowners’ insurance is
targeted at unforeseen perils
and doesn’t typically cover the
inevitable such as wear and
tear, deterioration or flooding in
a flood plain.
Fire insurance is part
of homeowners’ or tenants’
insurance, but claims aren’t
limited to fire. You may have claims f r o m
smoke damage and water damage from fire hoses;
20 Open Magazine Summer 2008
by Loretta Stevens
you may need temporary housing, and you may need salary
replacement. Ask questions to ensure that you know what
expenses you may be able to claim.
How much coverage do you need and
where should you buy it?
For independent insurance information, visit www.
insurance-canada.ca or www.ibc.ca or ask your auto insurance
agent or an insurance broker. Ask friends to recommend
insurance companies. Search until you’re confident that
your family’s future is in safe hands. The Insurance Canada
web site provides a checklist to consider before purchasing
homeowners’ insurance and it includes questions such as:
What kind of policy do you have?
How much coverage do you need?
What is covered in the policy and what is excluded?
Will you get replacement cost?
Are there limitations on valuables and collections?
Does the policy cover water damage?
Should I consider optional coverage?
How much deductible do I pay and what can I do to
decrease that cost?
Does having smoke and carbon monoxide detectors
lower the cost?
Is there a 24–hour hotline for claims?
Add questions that are specific to your situation and ask
your questions prior to agreeing to any purchase.
Fire can be terrifying, so plan your family’s escape and
practise it. Keep smoke and carbon monoxide detectors
in good working order. According to the Insurance
Bureau of Canada, approximately 20 per cent of all
smoke and carbon monoxide detectors are useless
due to dead or missing batteries; those that are
wired into homes get left in place long after their
useful 10–year life span. Most of us are familiar
with the “spring forward/fall back” fire safety
initiative to check our smoke detectors twice
a year when the clocks are changed, but
unfortunately, last year, Canadians still lost
an estimated 300 million dollars worth of
dwellings and possessions due to home
fires.
When I watched that house burn,
I knew the victim’s family didn’t care
about the loss of “things.” They were
most concerned about the loss of
their loved one that no amount
of insurance could replace. The
goal is to survive disaster and
to provide your family with
an opportunity to rebuild the
future together.
Photo by Robert Nolan