Questions & Answers
We answer the most commonly asked questions about property
insurance.
Your coverage
All about premiums - and saving money
Your coverage
Q: What does property insurance usually cover?
A: It depends on the type of home you live in. If you own
a house, your property insurance will cover the house itself
and detached structures like a garage. You can choose to
insure your house against most unexpected situations, or
only against situations specified in your policy.
Your property insurance will also cover your personal belongings
such as jewellery, artwork, furniture, computers, carpets
and more.
Finally, most property insurance policies include third
party liability. This protects you against personal liability
if somebody is injured while on your property.
Q: I rent my home and the owner has property insurance.
Why do I also need insurance?
A: The owner of your rental unit may have insurance on the
entire building and even on items inside your unit, such
as the doors, cupboards and carpets. However, if you have
paid for any upgrades - for example, built-in shelves, upgraded
carpets, designer paint - you may need your own insurance
to protect your investment.
Also, your landlord's insurance is unlikely to cover your
personal belongings inside your rental unit - and it may
not protect you against personal liability should someone
be injured while visiting you.
Q: For insurance purposes, what is the value of my property?
A: Property coverage is based on a variety of factors, including
square footage, number of storeys, and the year it was built.
Q: What kind of coverage can I get for my cottage or
trailer home?
A: Depending on the type of seasonal home you own, you can
insure it by extending some of the coverage from your main
residence.
For more information, please see Other
Properties.
Q: Will my property insurance cover my personal belongings
when I'm travelling?
A: Most property insurance will protect you when you travel.
For example, if your luggage is stolen from a hotel room
or your car, you may be covered for the loss.
Q: Over the years, I have done renovations and improvements
that have increased the value of my home. Will my insurance
replace these upgrades?
A: Remodeling your home may change the valuation placed
on your property. If you build a major addition or swimming
pool, ensure your insurance company knows.
Q: Does my property insurance cover my additional expenses
if I have to move out of my home while it is repaired?
A: If you are forced to move out of your home after major
damage occurs under insured circumstances, your property
insurance pays for the additional costs of temporary accommodations
and restaurant meals. For example, if prior to the loss,
your total monthly living expenses were $800, and after your
loss your total monthly living expenses increased to $1,000
- you would be reimbursed for the difference of $200.
Q: What is a schedule of loss?
A: A schedule of loss is a document submitted to the insurance
company that lists all the lost or damaged items in a claim.
It includes information about the item itself like the model
number, when and where it was purchased, the cost of the
purchase and the replacement amount.
Q: If I paid $450 for my bicycle in 1999 and it gets
stolen today do I get $450 back?
A: On personal property that is lost or damaged by an Insured
peril (such as theft), we will pay the lesser of:
- The cost of repairs or:
- The cost of new articles of similar kind, quality and
usefulness without deduction for depreciation, up to the
limit of insurance, but only when replacement has been
made and for no more than the amount actually spent.
- If repair or replacement is not made within 180 days
(six months) of the loss, we will not pay more than the
Actual Cash Value (ACV) of the item.
Actual cash value is the value of the property immediately
before the loss or damage occurred. It takes into account
such things as the cost of replacement less depreciation
and obsolescence. In determining depreciation, we will consider
the age of the property, the condition of the property immediately
before the damage occurred, the resale value and the property's
normal life expectancy.
Example: A bicycle is purchased in 1999 for $450. The replacement
may be a different model at a cost of $200. The Actual Cash
Value would be $200minus depreciation.
Q: What happens if property has been stolen or damaged?
A: A Claims advisor will ask you to prepare an itemized
list of all your missing and damaged property (see Schedule
of Loss above). Depending on the severity of the damages
or loss, a claims advisor might inspect your property, document
the claim and assist you through the process. The Claims
advisor will review your policy and advise you which coverages
apply and their corresponding limits. You may be asked to
gather key documents to establish proof of ownership. These
documents can include: receipts, owners manuals, warranty
cards, appraisals, photographs, original manufacturer packaging
etc.
Q: What are my choices for building contractors?
A: The choice of the repair firm is yours. However, we do
have a list of preferred vendors whose work is guaranteed
for both quality and timeliness. Any contractor that we recommend
has been fully certified to handle all losses including fire,
water and wind. They are available at any time to respond,
as timely action can greatly assist in the restoration process
and reduce the inconvenience to you. If you choose to use
your own contractor, your Claims Advisor will work with you
and the selected vendor to determine both the scope of the
repairs and a price for completing them.
Q: Can I take a cash settlement on building repairs?
Your Claims advisor will work with you to determine the
cash settlement on minor repairs. We want to ensure that
a loss involving a lot of damages is repaired in a proper
and timely fashion to pre-loss condition. Generally, the
cash settlement will be based on the age of the property,
the condition of the property immediately before the damage
occurred, and the property's normal life expectancy. Cash
Settlements also typically exclude government taxes and those
additional profit and overhead costs, which would normally
be paid to a contractor to complete the repairs.
Q: How long will it take to resolve my claim?
A: The amount of time required to handle each claim varies
based on the severity, extent and type of the property loss
or damage. Some claims can be resolved in a single phone
call, but others are more complex and require in person inspections
to make sure that all damages are properly identified. Your
Claims advisor will, in all cases, explain up front the claims
process and will be able to give you with a better time estimate
when they begin to handle the claim.
Q: Does my policy cover all water losses?
A: In general, your policy is written to provide coverage
for any sudden, accidental and unforeseen water damage losses.
However there are some causes that may be excluded. The exact
level of coverage depends on the type of policy that you
have with us. It is important to read over the entire policy
to determine the coverages and exclusions.
Most policies will respond to the resulting damages from
water losses that are sudden and accidental and unforeseen.
The cause of loss is an important factor in determining whether
or not the policy will afford coverage. This cause may be
investigated by an RBC Insurance road advisor or preferred
vendor. There are circumstances where water damages are not
covered. These include (but are not limited to) the following:
- Rainwater (unless an opening in the building is created),
flood, surface water, waves, tidal waves, overflow of streams
or other bodies of water.
- Water below the surface of the ground, including water
which exerts pressure on or flows, seeps or leaks through
a sidewalk, driveway, foundation, wall, basement, floor,
or through doors, windows or other openings.
- Dampness of atmosphere, condensation, extremes of temperature,
wet or dry rot or mould, and deterioration.
Q: What is a Proof of Loss form?
A: A Proof of Loss form is the official document completed
by a policy owner and provided to an insurer regarding a
loss. It provides the insurer with all the information needed
to assess the loss.
All about premiums - and saving money
Q: How can I pay for my insurance?
A: You have several payment options. These include regular
pre-authorized chequing account withdrawals or credit card
debits (Visa or Master Card) and lump sum payments. At this
point in time, you cannot use a bank machine to pay your
insurance premium.
Q: How can I save on insurance premiums?
A: There are a number of ways to reduce your property insurance
premiums. For example, you can earn discounts if you:
- Have an alarm system.
- Insure your home and auto together.
- Choose a higher deductible.
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