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Disability Insurance for Self-employed Workers

That’s where disability insurance for self-employed workers and disability insurance for business owners comes in. It helps you protect your income, lifestyle, and, in some cases, your business. And it’s especially important for self-employed people who don’t have access to a group plan through their employer.

No one likes to think about the possibility of serious illness or injury. Unfortunately, accidents and illnesses happen, so it’s worthwhile being prepared.

Wondering if disability insurance is right for you? Here’s what you need to know.

Key takeaways

  • Disability insurance is designed to provide an income if you sustain a serious illness or injury. It can allow you and your family to pay your bills and maintain your lifestyle during a difficult period.

  • If you’re self-employed, an individual insurance plan may be an important part of your financial health, as it could provide financial support and other benefits.

  • The cost of disability insurance for self-employed people varies. Your monthly premium will depend on a few factors such as your profession, the type of coverage you want, how much income you want replaced if you can’t work, and more.

  • There are individual disability insurance policies available to suit various needs.

How does disability insurance work if you’re self-employed?

Disability insurance is a form of income protection that you pay for each month. If you ever can’t work because of an illness or an injury, disability insurance can help you cover your monthly expenses.

If someone is working for an employer, they’ll often get coverage through a group plan that has short-term disability (STD) and long-term disability (LTD) insurance. They may also qualify for government help through Employment Insurance (EI) and/or the Canada Pension Plan (CPP).

But what if you’re self-employed, or you’re a business owner? You may still be able to claim benefits if you pay into CPP or EI for self-employed workers. But you might also want to consider an individual disability insurance plan to make sure you can continue to pay your bills in the event you become injured or ill.

Most individual disability insurance plans work something like this:

  1. You pay a fee (called a “premium”) each month.

  2. If you ever have a serious injury or an illness and can’t do your job for an extended period of time, you submit an insurance claim.

  3. If your claim is approved, you receive a monthly payment that covers a percentage of your usual earnings. It’s typically tax free to help you get closer to the amount you usually make each month.

  4. Your plan may also give you access to specialists and extra supports to help you recover more quickly and return to work.

What are common reasons for self-employed workers going on disability insurance?

Surprisingly, just eight per cent of disabilities are caused by injuries due to workplace mishaps or car accidents. These other health issues are more common:

  • Mental health disorders: From clinical depression to substance abuse, issues with mental health are a common reason people need time off work.

  • Cancers: Treatment may make it difficult or impossible to work for a period of time.

  • Cardiovascular diseases: Heart disease, heart attack, and stroke can all require time off for treatment.

  • Musculoskeletal diseases: Arthritis, for example, can cause joint pain, mobility issues, and weakness that turn certain types of employment into a struggle.

Why should self-employed workers consider disability insurance?

You may have a home, a car, or an investment portfolio, but none of those things is your most valuable asset. It’s actually your ability to make a living. If you’re 35 and have an annual income of $72,000, you have the potential to make $3,160,994.63 over the next 30 years, assuming a modest 2.5 per cent salary increase each year. That’s a serious chunk of change.

As a self-employed person, you’re in a unique position, since:

  • You don’t have protection from an employer’s group insurance plan.

  • You may have fixed operating costs, such as monthly rent for an office space, that put extra pressure on your finances.

  • You are responsible for your clients or your customers. If you can’t work for several months, business may go elsewhere, which could have long-term effects on your income.

An individual disability insurance plan may be an important part of your financial well-being if you’re self-employed. Here’s how it can help.

Financial support

When a disability lasts longer than 90 days, it can typically continue for two to three years. Could you pay your bills for that length of time without your usual income? Your options include depleting your savings, relying solely on the earnings of a spouse or partner, taking out a loan (if you qualify), or planning ahead with disability insurance. Purchasing disability insurance can offer some relief in knowing that you’ll have financial support if you become too sick or injured to work.

Access to specialists

Appointments with specialists may help you recover sooner. Some disability insurance plans can get you quick access to physicians (e.g., rheumatologists, oncologists, or psychiatrists), mental-health professionals, and in-person or virtual rehabilitation services.

Return-to-work support

For many people, work isn’t solely about the paycheque. It’s also about meaningful output, contributing to society, and the sense of accomplishment we get from providing for our families.

These are just a few reasons that some people wish to return to work as soon as possible after illness or injury. Some disability insurance policies can help you get back to work faster by providing these supports:

  • Work conditioning (support as you return to work gradually)

  • Work-site modification

  • Transferable skills analysis (if you can’t go back to your old career)

  • Job search assistance

  • Assistive devices (such as wheelchairs, hearing aids, and prostheses)

  • Dependant care (if you needcare for your kids or your parents, so you can go to a rehab program).

How to choose the right disability insurance plan if you’re self-employed

Speak with an advisor or broker and ask plenty of questions. You’ll want to compare a few aspects of each plan you’re offered.

  • Occupations: Does the provider typically cover your type of occupation?

  • Terms and conditions: How does the provider define “disability”?

  • Benefits: What types of benefits are offered with each plan? How long do the benefits last? Does the provider have access to medical professionals and offer return-to-work assistance?

  • Customer service: Does the provider have a team of trained specialists who will help you through the claims process and offer support while you’re on disability?

Is disability insurance worth it for self-employed workers?

Imagine you had to take months or years off work. Would you still be able to afford your mortgage or rent, utilities, car, groceries, school fees, and any of the other expenses you’ve accumulated? Most people would say “no.” If you’re in the same boat, disability insurance could be a useful part of your financial wellness plan.

Can any self-employed worker get disability insurance?

Ultimately, you’ll need to speak with an advisor or broker and answer some pre-qualifying questions about your type of work and how long you’ve been self-employed. There are individual disability insurance policies available to suit various needs, and an advisor can get into specifics.

How much does disability insurance cost for self-employed workers?

Every plan is different. That means the cost of disability insurance for self-employed people will also vary. Your monthly premium will depend on a few factors, including:

  • Your profession

  • The type of coverage you want (there are many options, from what types of injury and illness are covered to how long you would be able to claim benefits)

  • How much income you need replaced if you become sick or injured and can’t work.

To figure out the amount of income you’d need covered, you’ll need to have a close look at your current monthly expenses.

Chat through the details with an advisor or broker to find out the best plan and the amount of coverage to best suit your occupation and your lifestyle.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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That’s where disability insurance for self-employed workers and disability insurance for business owners comes in. It helps you protect your income, lifestyle, and, in some cases, your business. And it’s especially important for self-employed people who don’t have access to a group plan through their employer.

No one likes to think about the possibility of serious illness or injury. Unfortunately, accidents and illnesses happen, so it’s worthwhile being prepared.

Wondering if disability insurance is right for you? Here’s what you need to know.

Key takeaways

  • Disability insurance is designed to provide an income if you sustain a serious illness or injury. It can allow you and your family to pay your bills and maintain your lifestyle during a difficult period.

  • If you’re self-employed, an individual insurance plan may be an important part of your financial health, as it could provide financial support and other benefits.

  • The cost of disability insurance for self-employed people varies. Your monthly premium will depend on a few factors such as your profession, the type of coverage you want, how much income you want replaced if you can’t work, and more.

  • There are individual disability insurance policies available to suit various needs. Speak to an insurance advisor to see what you’re eligible for and to help you pick out a plan that best fits your needs.

How does disability insurance work if you’re self-employed?

Disability insurance is a form of income protection that you pay for each month. If you ever can’t work because of an illness or an injury, disability insurance can help you cover your monthly expenses.

If someone is working for an employer, they’ll often get coverage through a group plan that has short-term disability (STD) and long-term disability (LTD) insurance. They may also qualify for government help through Employment Insurance (EI) and/or the Canada Pension Plan (CPP).

But what if you’re self-employed, or you’re a business owner? You may still be able to claim benefits if you pay into CPP or EI for self-employed workers. But you might also want to consider an individual disability insurance plan to make sure you can continue to pay your bills in the event you become injured or ill.

Most individual disability insurance plans work something like this:

  1. You pay a fee (called a “premium”) each month.

  2. If you ever have a serious injury or an illness and can’t do your job for an extended period of time, you submit an insurance claim.

  3. If your claim is approved, you receive a monthly payment that covers a percentage of your usual earnings. It’s typically tax free to help you get closer to the amount you usually make each month.

  4. Your plan may also give you access to specialists and extra supports to help you recover more quickly and return to work.

What are common reasons for self-employed workers going on disability insurance?

Surprisingly, just eight per cent of disabilities are caused by injuries due to workplace mishaps or car accidents. These other health issues are more common:

  • Mental health disorders: From clinical depression to substance abuse, issues with mental health are a common reason people need time off work.

  • Cancers: Treatment may make it difficult or impossible to work for a period of time.

  • Cardiovascular diseases: Heart disease, heart attack, and stroke can all require time off for treatment.

  • Musculoskeletal diseases: Arthritis, for example, can cause joint pain, mobility issues, and weakness that turn certain types of employment into a struggle.

Why should self-employed workers consider disability insurance?

You may have a home, a car, or an investment portfolio, but none of those things is your most valuable asset. It’s actually your ability to make a living. If you’re 35 and have an annual income of $72,000, you have the potential to make $3,160,994.63 over the next 30 years, assuming a modest 2.5 per cent salary increase each year. That’s a serious chunk of change.

As a self-employed person, you’re in a unique position, since:

  • You don’t have protection from an employer’s group insurance plan.

  • You may have fixed operating costs, such as monthly rent for an office space, that put extra pressure on your finances.

  • You are responsible for your clients or your customers. If you can’t work for several months, business may go elsewhere, which could have long-term effects on your income.

An individual disability insurance plan may be an important part of your financial well-being if you’re self-employed. Here’s how it can help.

Financial support

When a disability lasts longer than 90 days, it can typically continue for two to three years. Could you pay your bills for that length of time without your usual income? Your options include depleting your savings, relying solely on the earnings of a spouse or partner, taking out a loan (if you qualify), or planning ahead with disability insurance. Purchasing disability insurance can offer some relief in knowing that you’ll have financial support if you become too sick or injured to work.

Access to specialists

Appointments with specialists may help you recover sooner. Some disability insurance plans can get you quick access to physicians (e.g., rheumatologists, oncologists, or psychiatrists), mental-health professionals, and in-person or virtual rehabilitation services.

Return-to-work support

For many people, work isn’t solely about the paycheque. It’s also about meaningful output, contributing to society, and the sense of accomplishment we get from providing for our families.

These are just a few reasons that some people wish to return to work as soon as possible after illness or injury. Some disability insurance policies can help you get back to work faster by providing these supports:

  • Work conditioning (support as you return to work gradually)

  • Work-site modification

  • Transferable skills analysis (if you can’t go back to your old career)

  • Job search assistance

  • Assistive devices (such as wheelchairs, hearing aids, and prostheses)

  • Dependant care (if you needcare for your kids or your parents, so you can go to a rehab program).

How to choose the right disability insurance plan if you’re self-employed

Speak with an insurance advisor or broker and ask plenty of questions. You’ll want to compare a few aspects of each plan you’re offered.

  • Occupations: Does the provider typically cover your type of occupation?

  • Terms and conditions: How does the provider define “disability”?

  • Benefits: What types of benefits are offered with each plan? How long do the benefits last? Does the provider have access to medical professionals and offer return-to-work assistance?

  • Customer service: Does the provider have a team of trained specialists who will help you through the claims process and offer support while you’re on disability?

Is disability insurance worth it for self-employed workers?

Imagine you had to take months or years off work. Would you still be able to afford your mortgage or rent, utilities, car, groceries, school fees, and any of the other expenses you’ve accumulated? Most people would say “no.” If you’re in the same boat, disability insurance could be a useful part of your financial wellness plan.

Can any self-employed worker get disability insurance?

Ultimately, you’ll need to speak with an insurance advisor or broker and answer some pre-qualifying questions about your type of work and how long you’ve been self-employed. There are individual disability insurance policies available to suit various needs, and an advisor can get into specifics.

How much does disability insurance cost for self-employed workers?

Every plan is different. That means the cost of disability insurance for self-employed people will also vary. Your monthly premium will depend on a few factors, including:

  • Your profession

  • The type of coverage you want (there are many options, from what types of injury and illness are covered to how long you would be able to claim benefits)

  • How much income you need replaced if you become sick or injured and can’t work.

To figure out the amount of income you’d need covered, you’ll need to have a close look at your current monthly expenses.

Chat through the details with an insurance advisor or broker to find out the best plan and the amount of coverage to best suit your occupation and your lifestyle.

RBC Disability Insurance

Help ensure your expenses are covered if you get sick or injured

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Water damage is a top threat to homeowners in Canada and a leading type of insurance claim. Luckily, there are steps you can take to prevent leaks, flooding, and sewer backups, plus there’s water damage insurance to cover you in a worst-case scenario. Discover some of the best techniques for protecting your home, health, and bank account.

Key takeaways

  • Burst or leaky pipes, drainage issues, and poor ventilation can all cause water damage.

  • Avoid water damage if you can, because it can cause structural issues, affect your home’s resale value, and even have negative health impacts.

  • There are many steps you can take for water damage prevention that will ultimately protect your time, money, and health.

  • If you experience a serious leak, flooding, or sewer backup, turn off the water and contact your insurance company immediately.

  • Consider investing in water damage insurance.

What causes water damage

In every case of water damage, there’s either an indoor or outdoor water source that leads to leaking, backups, or condensation. Here are some of the most common causes of water damage:

  • A pipe bursts or cracks.

  • A fixture (such as a sink, tub, toilet, or shower) or an appliance (such as a washing machine, dishwasher, or water heater) has leaky plumbing or malfunctions in some other way.

  • A sewer backup occurs because there are pipes that have become clogged with foreign objects (such as hair, cooking oil, tree roots) or because of an overwhelmed main sewer line.

  • Drainage issues result from damaged or improperly sealed roofs, walls, and floors; poor grading around the foundation; blocked or broken eavestroughs or downspouts; or a sump-pump malfunction.

  • The HVAC system isn’t properly maintained.

  • Poor ventilation creates water buildup on walls and windows that leads to water damage and mould over time.

Why water damage is dangerous

Trust us: You don’t want water damage. Not only is it costly to repair, but it can also affect the safety of your home. These common side-effects of water damage make it clear that prevention is the best approach.

  • Structural issues: Long-term exposure to moisture weakens the floors, walls, and ceilings. Wood rots, concrete cracks, and metal corrodes, which can potentially cause structures to collapse.

  • Damage to your belongings: Leaks, flooding, and sewer backups can ruin clothing, books, furniture, and family heirlooms.

  • Mould and mildew growth: People living in damp, mouldy conditions are more likely to experience eye, nose, and throat irritation; itchy skin; wheezing and shortness of breath; coughing; and worsening asthma symptoms.

  • Health risks: Water and electricity shouldn’t mix! When they do, the result can be electrical fires or electrocution. Sewer backups also bring bacteria-filled waste into the home.

  • Reduced property value: Water damage repair can be incredibly expensive if the moisture affects the foundation, floors, and walls. Even if you attempt to fix the issues, there can be hidden mould and structural impacts that might put off potential buyers.

How to prevent water damage

As a homeowner, it’s a smart idea to routinely check for leaks, stains, peeling paint, mould, and condensation. Taking these steps will also make it less likely you’ll run into problems down the road.

Roof

  • If your roof was last reshingled more than 15 years ago, it’s time to have it checked and possibly redone.

  • Think about adding a waterproof membrane (a.k.a. underlayment) beneath your shingles.

  • Routinely replace damaged or missing shingles.

  • Ensure that skylights, vents, and chimneys are all properly sealed.

  • Check that your attic has good ventilation and insulation.

  • Carefully clear off snow and ice in the winter.

 Eavestroughs or gutters    

  • Clean out your eavestroughs, downspouts, and gutters in the spring and fall, so water can flow freely.

  • Install downspout extensions to direct water at least two metres away from your home’s foundation.

Windows and doors

  • Properly seal or replace old windows and doors (note: swelling, peeling, and discolouration are all signs of water damage).

  • Make sure that basement window wells have a proper drainage system and are kept clear of debris.

Toilets, tubs, and sinks

  • Ensure drains are clear of hair, grease, and food scraps and take care of a slow-draining sink.

  • Turn on the exhaust fan or leave doors or windows open when bathing and showering.

  • Replace loose or broken tiles, where mould could collect.

  • Know where all your shut-off valves are and install any that are missing—all plumbing in your home should have its own shut-off valve.

  • Consider installing water-leak sensors around/close to where leaks are likely to occur, such as faucets, appliances, and toilets.

  • Automatic shut-off valves add an additional layer of protection and will act in the event a leak is detected.

Pipes

  • Check shut-off valves every six months to ensure they work.

  • Know the location of your main shut-off valve, in case of an emergency.

  • Check plumbing for corrosion or buckling and replace, if needed.

  • Avoid pouring fats, cooking oil, and grease down drains (and put them in the green bin, instead).

  • Prevent frozen pipes by insulating any outside walls that contain plumbing and use snap-on insulation for exposed pipes in unheated areas.

  • Drain and shut off all water pipes outside your home as part of a routine pre-winter cleanup.

  • Consider adding a freeze detector to exposed pipes.

Appliances

  • Check hoses for wear and tear, and replace, if necessary.

  • Replace older washing machines, refrigerators, and dishwashers.

Walls and foundation

  • Seal any breaks or cracks in siding, bricks, stone, or masonry to prevent leaks.

  • Check that all openings from wiring, plumbing, phones, cable, heating, and air conditioning are properly sealed with foam or caulk.

  • Ensure proper grading for water to drain away from the foundation of your home.

  • Keep snow away from foundation walls and basement window wells.

Basement

  • Repair or replace damaged weeping tiles.

  • Clear basement floor drains of debris.

  • Install a backflow valve in case the main sewer on your street is overwhelmed with water.

  • Invest in a backup generator for your sump pump.

  • Keep valuables off the floor.

 Water tank

  • Maintain your water tank (including flushing it out once or twice per year) and watch for corrosion that can lead to leaking or bursting.

  • Replace a gas water heater every eight to 12 years and an electric one every 10 to 15 years.

Outside

  • Keep outdoor sewer grates clear, so water has a place to go.

  • Add more green space around your house and use porous pavement that will absorb water.

  • Consider installing a rain barrel to collect rainwater, which will reduce the load on the main sewer during downpours.

What to do in the event of water damage

Accidents happen, and that’s why insurance exists. Before water damage happens in your home, understand the details of your insurance policy to see what’s covered. Most policies won’t automatically protect you in the case of sewer backups or overland water (when rivers, lakes, and ponds rise and flood the land). You may want to consider adding specific types of water damage insurance to your home insurance plan.

If you do end up dealing with water damage, the steps you should take will depend on its severity.

  • Condensation and leaks: Make repairs, buy new appliances, and/or improve drainage and ventilation before things get worse.

  • Flooding: Locate the source of the water and shut off the flow to the affected area, if you can. Turn off any affected or nearby electricity as well, then call your insurance company. They may be able to recommend water restoration and mould experts in your area.

  • Sewer backups: Do not enter the contaminated water. Turn off the water and electricity if a lot of waste water has accumulated, then call your insurance company for guidance.

Water damage and insurance

Different types of water damage insurance are available to consumers, and they vary depending on whether you have a home, a condo, or a tenant insurance policy. The availability of various products also varies depending on where you live.

You may want to consider purchasing additional coverage if you’re concerned about water damage and how it might result in costly repairs. Speak to your RBC Insurance Advisor about your options for sewer backup coverage and overland water insurance (commonly known as “flood insurance”).

Get a free online quote for coverage to protect your property and your belongings from the unexpected, including water damage. Call 1-877-749-7224 to speak to an RBC Insurance Advisor about home insurance.

Great Rates and Expert Advice on Home Insurance

Get a free online quote* for coverage to protect you, your property, and your belongings from the unexpected.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Cyber crime is on the rise. Knowing the ways online criminals operate as well as methods for protecting yourself can help lower crime rates and keep sensitive data out of the hands of criminals.

Key takeaways

  • Cyber crime is on the rise in Canada, necessitating increased vigilance and awareness.

  • Anyone who uses a computer or a digital device connected to the internet can be a target of cyber criminals.

  • Ransomware attacks are the most common type of cyber crime in Canada.

  • Cyber insurance can help protect you and your family from the financial impacts of cyber crime.

What is cyber crime?

Cyber crime is illegal activity that takes place online through the use of computers and/or by targeting other computers, networks, or networked devices (and their users). Numerous types of cyber crimes exist, ranging from financial fraud to the theft of intellectual property to identity theft.

With hundreds of millions of dollars stolen from Canadians every year, it’s obvious this  criminal activity is having a major impact in our country—and the damage isn’t solely financial. Identity theft, for example, can take years of effort to resolve, creating an emotional and a financial strain on those who are targeted.

What are common cyber crimes in Canada?

Phishing and social engineering

Phishing and social engineering are strategies that cyber criminals use across large groups of potential targets in the hope that some of these targets will be duped.

Criminals who use social engineering tactics manipulate targets into giving up their personal information (such as a PIN or account numbers). Phishing is a form of social engineering in which a criminal imitates a company, brand, or recognizable organization to steal sensitive information from you. For example, you might receive an email in which the sender claims to be your bank or a department store where you frequently shop. The sender may ask for your credit card number, so they can confirm a purchase or they may offer you an enticing prize. Often, they will then use the information you disclose to them for further criminal activities.

Phishing emails usually exhibit telltale signs of fraud. Look out for messages that express urgency and contain statements such as, “You must respond within 24 hours, or we will close your account.” They also often contain requests for your personal information, such as login data, passwords, or PINs. Remember that financial institutions will never ask for this type of information over text or email. Similarly, the Canada Revenue Agency never asks you to provide personal information by email.

Phishing emails frequently offer too-good-to-be-true prizes or deals that ask you to provide sensitive information or pay a fee upfront. They can also contain suspicious links that lead to pages asking for login data.

If you receive an email from an unknown sender that appears unprofessional, or haphazardly constructed, or includes a file to download, it’s likely a phishing scam. Spam filters can help  reduce the amount of phishing emails you receive, but some will still get through. Learn to recognize these warning signs. If you’re unsure about an email, use alternative methods (for example, phoning your bank or credit card company directly) to verify any and/or all online-based requests you receive.

Identity theft and financial fraud

Identity thieves target your personal, sensitive information to use it for fraudulent activities. This can include your name, birth date, address, and social insurance number. Cyber criminals can use this data to apply for a loan or open a credit card account, leaving targets liable for debts they did not incur themselves.

Protect yourself from identity theft by:

  • Never sharing your personal data, unless you’re certain you’re communicating with a legitimate company or organization.

  • Creating strong and unique passwords for online platforms that could be targeted by cyber criminals—think: your email account, your online banking account, and any other site that stores your personal information.

  • Using two-factor login authentication on sites that offer this option.

  • Checking your banking and credit card statements to monitor for unauthorized transactions.

  • Employing a credit monitoring service that will notify you when it detects suspicious activity on your account.

Ransomware attacks

According to the Canadian Centre for Cyber Security, ransomware attacks are the most common threat to online security. This type of attack—where criminals use software to steal, corrupt, or erase data—is on the rise. Once your data is stolen or otherwise compromised, attackers demand a fee (or ransom) from you to get it restored.

Corporations or large organizations are often the targets of ransomware attacks, but individuals can also be targets. Since data is stolen via online channels, storing yours offline or in a secure cloud storage system provides a greater degree of data protection. But it does require you to regularly back up your data, so it remains current. You’ll also want to keep your computer and phone operating systems and other programs up to date, so their latest security features are put to use.

To avoid ransomware attacks, never download a suspicious-looking file (even if it’s sent from a friend) or a file from a source you don’t know.

Online privacy breaches

The internet creates a web of connections in our communities and across the globe. It also creates opportunities for cyber criminals to take advantage of social media users and their right to privacy.

Privacy is an individual issue, and some people are willing to share more about themselves than others. To maintain the level of privacy you’re comfortable with, examine the personal risks you’re taking by sharing too much about your life on social media platforms and marketplaces. Are you OK with strangers having your address, birthday, or phone number? What about your last name?

Most mainstream social media platforms offer privacy setting options that let you control who sees what you share and how much they see. Make sure your privacy settings are aligned with your willingness to share your information with strangers. When installing a new app or signing up for a new platform, carefully read the notifications explaining the personal information these apps will be able to access and the data they’ll be able to collect.

For those who want to go the extra mile in protecting their privacy online, a virtual private network (VPN) service will provide a secure connection between your computer and the internet by altering your IP address and encrypting your internet activities.

Cyberbullying and online harassment

Online harassment and cyberbullying can especially affect younger users of social media platforms and apps. Cyberbullying can take a serious toll on mental health, result in a loss of self-esteem, or even be linked to threats of real-world physical harm.

Create open lines of communication within your family or circle of friends, so those experiencing online harassment have someone to turn to if it happens to them.

Cyberbullies should be reported via the platform they’re using to carry out their harassment. They can also be blocked by targets who are experiencing bullying. The Canadian government has instituted legal consequences for those who engage in online harassment. The punishment for cyberbullying ranges from fines to the confiscation of computers or mobile devices to jail time, depending on the severity and type of harassment.

What is cyber insurance?

Cyber insurance is a type of coverage designed to help protect people from ransomware attacks, data breaches, identity theft, and other cyber crimes previously mentioned. If you’re insured through RBC Insurance, our cyber endorsement coverage can be added to your homeowner’s insurance policy. This product helps to reduce the financial impacts of cyber crime by covering legal costs, the costs of an investigation, or the costs to restore stolen or corrupted data. 

Your cyber insurance company should explain what kind of cyber crime is covered under its policy, who in your household is protected, and whether or not the company uses cyber crime experts when claims are made.

Taking charge of your digital security

Be sure to follow these key steps to keep yourself and your data protected from cyber criminals:

  • Use passwords and login information that are hard to guess and never share this information.

  • Opt in for two-step login authentication, where possible.

  • Monitor your financial transactions carefully and frequently for suspicious activity.

  • Use spam filters and delete emails that have the features often found in phishing scams.

  • Never download email attachments, unless you are certain about their source and content.

  • Think about increasing your privacy settings on social media platforms.

  • Store your data offline or on a secure cloud server.

  • Report cyber crimes or attempted cyber crimes via phone or email. Find contact information here.

Cyber insurance can help protect you and your family from the losses and costs that result from cyber crime. A licensed insurance advisor can help you get a home insurance quote and find the right coverage for your situation.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Collecting is a popular hobby that comes with the responsibility to preserve historical automobiles. Collector car insurance helps collectors keep their vehicles protected.

Key takeaways

  • Collector cars aren’t defined by their age, but by their condition, market value, and usage.

  • Collector car insurance differs from regular car insurance in important ways, offering higher claims payouts and reduced premiums because of a lower annual mileage.

  • Collector car insurance often sets parameters for usage, mileage, and storage of the car.

What is a collector car?

A collector car isn’t defined by how old it is. For these vehicles, age is often just a number. It’s true there are very old collector cars dating back to the invention of the automobile, but for a vehicle to qualify as a collector car, being made in the previous century isn’t required. For insurance purposes, here are some criteria that define a collector car:

  • It’s appreciating or maintaining a steady market value

  • It’s in good condition or under restoration

  • It’s being stored in a secure, enclosed facility

  • It isn’t used for everyday or backup transportation

What is collector car insurance?

Insurance for collector or classic cars allows individuals to enjoy their vehicle to the fullest, minimizing worry when they take their cars out on the road to a convention or a classic car parade.

Collector car insurance policies usually cover your car up to a guaranteed value, often offering more coverage than regular car insurance.

How does a vehicle qualify for collector car insurance?

Coverage varies between insurance companies, but typical eligibility factors for collector car insurance include:

  • Where the car is stored

  • The way the vehicle is used

  • The eligibility of the car’s driver

Because classic or collector cars are often unique, your insurance company will also want to know the age and model of your car and whether it’s been modified and/or customized.

Coverage will vary based on where you live, with some types of coverage only available in certain locations. Your insurance advisor can help you get the best available coverage for your specific needs and your location.

Collector car insurance versus regular car insurance

Collector car insurance differs from regular car insurance in some essential ways.

Car valuation

  • Regular car insurance covers the value of your vehicle according to its market price. Since regular cars usually depreciate in value, a total loss claim (where your car is stolen or in an accident and damaged beyond repair) means that, in most cases, your insurance company reimburses you for the current (depreciated) value of the vehicle.

  • Collector car insurance offers guaranteed value. The owner of the vehicle and their insurance company come to an agreement about the classic car’s worth, and this determines the amount a collector car owner would receive in the event of total loss (minus any deductible). This can often be higher than market value (called “market appreciation coverage”). Collector car insurance also protects your vehicle when it’s being restored or rebuilt. 

Car usage

  • Regular car insurance is intended for vehicles that are used every day—to get you to work, for running errands, or taking a road trip.

  • Collector car insurance is designed for cars that aren’t used as primary (or even backup) transportation. There can be policy restrictions on how often or far they’re driven, including mileage limits. This type of insurance covers driving for pleasure or to exhibitions, car shows, and other car collector events.

Premiums

  • Regular car insurance prices are calculated based on factors related to the driver (age, driving history, and location) and the vehicle being insured (model and age of the car).

  • Collector car insurance prices are determined by the value of the car that’s agreed upon by the owner and the insurance company. Other factors that affect the prices include vehicle storage and usage.

Storage and preservation

  • Collector car insurance often requires vehicles to be stored in secure (sometimes even climate-controlled) facilities to maintain the car’s value, condition, and structural integrity.

Vehicle modifications

  • Regular car insurance policies may limit and restrict certain modifications (such as lowering the suspension, tinting the windows, or even changing paint colours) to your vehicle, while allowing others. Talk to your licensed insurance advisor before making any modifications.

  • Collector car insurance is designed to support collector car owners and may provide coverage when modifications, enhancements, and upgrades that are aimed at maintaining or improving a vehicle’s value or authenticity have been made.

What is included in collector car insurance?

Consult with your licensed insurance advisor to find out what collector car insurance plans they offer. Coverage usually includes: 

  • Collision coverage that protects your car in case of an accident.

  • Third-party liability insurance that covers an accidentally injured person or damaged property.

  • Comprehensive insurance that protects your collector car from things such as theft, vandalism, or natural disasters.

7 reasons to insure your collector car

RBC Insurance has partnered with Hagerty Canada (Canada’s leading classic and collector insurance program), which offers flexible policies at a great price. Here are some reasons to consider insuring your collector car:

  1. Your collector car’s value is locked in at the time you buy your insurance.

  2. Your policy offers coverage for weekend drives, trips to the movies, car shows, and events.

  3. You can choose your own repair shop if you have a claim.

  4. An appraisal is usually not required.

  5. Multi-car discounts are offered for collectors with multiple collector cars.

  6. Most companies offer market appreciation coverage, meaning that if the market value of your vehicle increases above your insured value and a covered total loss occurs, this type of coverage may pay up to 125 per cent of the vehicle’s insured value.

  7. You may be able to get automatic new purchase coverage, which means that if you’re adding another collector car to your collection, your new purchase may be automatically covered for 30 days.

Check out these collector car insurance benefits. Get an online quote today.

RBC Insurance® is a trademark of Royal Bank of Canada. Used under license.

Hagerty Canada, LLC policies are underwritten by Elite Insurance Company, an Aviva Canada company. Some coverage is not available in all provinces. This is a general description of coverage. All coverage is subject to policy provisions, exclusions and endorsements. Hagerty determines final risk acceptance. Hagerty, Guaranteed Value, Cherished Salvage and Hagerty Valuation Tools are registered or common law trademarks of The Hagerty Group, LLC. © 2023 The Hagerty Group, LLC.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Ever notice how things go south at the most inconvenient times? Welcome to winter. Missed out on cleaning the gutters? Brace yourself for some potential ice-induced drama. And those breezy windows and doors? They’re practically inviting your heating bill to skyrocket.

Similar to maintaining a trusty vehicle, a winter home requires seasonal upkeep. Furnaces demand a check, chimneys cry out for a clean, and gaps in windows beg for sealing. When getting ready for winter year after year, these tasks transform from burdens to dependable rituals.

Key takeaways

  • Your home requires seasonal upkeep to protect it from the elements.

  • Do both an indoor and an outdoor inspection to ensure your home is ready for winter.

  • Your home is one of your most important assets, so consider going beyond seasonal inspections and safeguard it with the right type of insurance.

    How to prepare your home outside for winter

    Here are some ways to make sure the outside of your home and its surrounding property is ready for the colder months.

    Inspect the roof

    Missing a shingle or two? Spot-check your roof, especially after those gusty autumn days, because missing and damaged shingles can cause leaks. Consider a professional once-over for a more thorough examination. If you’ve got critters eyeing your roof as their winter home, maybe it’s time to get professional intervention. You definitely don’t want uninvited guests over the holidays.

    Clean the gutters

    Debris-free gutters aren’t just an esthetic choice; they’re also your home’s first defence against water damage. Ensure those downspouts usher away water, protecting your home’s foundation.

    Insulate all your windows and doors

    Feel a draft? Seal those gaps and consider installing weatherstripping. And assess the overall health of your window frames. They play a bigger role than just looking pretty by preventing drafts and leaks, and keeping things energy efficient.

    Clean your landscaping and prep irrigation systems

    Prep your garden for its winter slumber. Prune trees to keep stray and damaged branches away from your home, stash your gardening tool kit to keep it in working order, and winterize those irrigation systems.

    Drain your spigot and pipes

    Unhooking and properly draining water from hoses is essential to prevent freezing and subsequent damage to spigots and pipes. Avoid expensive repairs by ensuring all water is removed from hoses after each use, safeguarding your plumbing system against potential freezing-related issues.

    Inspect your walls and siding

    A quick evaluation of these can make a world of difference. Boost your home’s warmth quotient by insulating walls and the attic. You may also want to touch up paint, where needed, adding a fresh, winter-ready look.

    Inspect your driveway and walkways

    Address those cracks to keep things level and set up proper drainage, so water doesn’t pool, leaving your walkways as skating rinks. Ice is great in a glass of eggnog, but not on your driveway.

    Get the necessary tools and products

    When winter arrives, it’s essential to be prepared with the necessary tools and products to tackle the challenges it brings. A sturdy snow shovel takes centre stage, ensuring efficient snow removal from driveways and walkways. For larger areas, a snow blower can be a valuable investment, quickly clearing snow with ease. Insulated and waterproof gloves protect your hands from the cold and moisture while you’re shovelling or handling icy surfaces. Bolster traction on icy surfaces with salt, a winter warrior against slippery pathways. Additionally, keep a stash of sand to enhance traction and prevent slips.

    How to prepare your home inside for winter

    The inside of your home needs some TLC before winter, too. Read on for some ways you can ensure things will be cozy and safe in time for the first snowfall.

    Inspect your attic

    Exposed joists can be energy drainers. A little foam or fibrefill insulation might do the trick.

    Check your basement foundation

    A little crack can snowball into a major issue. Insulate exposed pipes, so they don’t freeze, and address gaps around exposed ductwork to keep out drafts.

    Examine your furnace or boiler

    An outage on a cold night? A malfunction—or worse—a boiler leak or rupture? No thanks! Hire an expert to check that everything is running smoothly and remember to replace those filters.

    Check your sump pump

    If you have one, now’s the time for that once-a-year check to ensure everything is running smoothly and to help prevent flooding. It’s better to be safe than soggy.

    Inspect your chimney and fireplace

    A professional cleaning of these enviable features could help you have safe and heartwarming fires all season long.

    Consider a programmable thermostat

    This is a smart way to keep your home toasty and running efficiently, allowing you to set specific temperatures for specific times (such as lowering it while you’re sleeping, for example) and adjust the temp while you’re away from home.

    Replace the batteries in your smoke detectors

    This is definitely not something you want to leave off the list. Make sure the batteries in your smoke detector are fresh.

    Remember, the goal here isn’t just to winterize your home; it’s about creating a cozy and safe winter home. And while you’re at it, home maintenance tips go beyond just physical checks. It’s the satisfaction that comes with knowing you’ve covered all your bases. Your home is one of your most important assets, and safeguarding this haven with insurance is smart, too. Reach out to RBC Insurance at 1-877-749-7224 for comprehensive home insurance coverage.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Also, recovery rates for stolen cars are going down. In 1990, 90 per cent of car owners who reported their vehicles stolen in Ontario had them recovered by police. That rate of recovery has fallen to approximately 50 per cent, in part because cars are being shipped outside of the country by organized crime rings.

Vehicle theft results in increased costs that affect us all. As car theft increases, so does the cost of car insurance—not just for those who’ve had their cars stolen but for all car owners. Car theft costs Canadians $1 billion each year in financial losses.

Key takeaways

  • Car theft rates have risen dramatically in recent years in Canada.

  • Cars with push-button starters and keyless entry are more susceptible to theft.

  • To keep your car safe at home, park in a garage or secure parking lot.

  • Devices like steering-wheel locks, anti-theft recovery systems, and on-board diagnostic (OBD) data-port blockers can help deter thieves and increase the chances that your car will be recovered.

Car theft prevention measures to take at home

Keeping a car secure while it’s parked at home is something that drivers often overlook. Here are some steps you can take to deter thieves from stealing your car out of your driveway.

Protect your key fob to prevent relay and reprogramming theft

Keyless-entry and push-start vehicles offer convenience for drivers while giving criminals additional options for stealing cars. Relay theft (also known as reprogramming theft) is when thieves use high-tech means to steal your vehicle. Your key fob is vulnerable to radio-frequency devices that can intercept the signal it emits and use that to enter your car. To keep this from happening, store your fob far away from the entrance of your home or keep it in a signal-shielding Faraday box or pouch. These are inexpensive and can be easily purchased online. 

Park in a garage or secure area

The best and safest place to park your car is in a garage or secure parking lot. If you don’t have access to one, there are still a few tactics you can use to make your car less likely to get stolen from your home.

  1. Never leave your car running,even if you’re just popping back into the house to retrieve a forgotten item. Turn off the engine and take your keys with you, leaving doors locked and windows closed.

  2. If you park on the street, turn your wheels in the direction of the curb. This will make it more difficult for your car to be illegally towed. For the same reason, back rear-wheel-drive cars into the driveway and park front-wheel-drive vehicles facing the top of the driveway.  

Lock vehicle doors and windows

Simple steps go a long way toward preventing car theft at home. Always lock your car, keep your windows rolled up, and store items that might further attract thieves out of view and locked inside the trunk.

More car theft prevention tips

You’ll never regret going the extra mile to protect your vehicle from theft. Here are a few items you can use to deter car theft.

Car anti-theft devices

Inexpensive steering-wheel locks act as a visual and physical deterrent that will stop some thieves from targeting your car.

OBD data-port blockers

A data-port blocker or lock prevents thieves from gaining access to your car’s on-board diagnostic (OBD) system, which is what they use to access and control a car’s internal computer, in turn, start the ignition. Check with your car manufacturer to make sure that installing this device does not invalidate your warranty, and do some careful product research before choosing a lock.  

Install an anti-theft recovery system

Anti-theft recovery systems are designed to prevent theft and aid in the recovery of stolen vehicles. Most recovery systems work by hiding small tracking devices throughout the vehicle and provides real-time location updates, enabling law enforcement to track down and recover a stolen car anywhere in North America. Some systems, like Tag, may also etch their logo on the car’s windows to serve as a deterrent for thieves.  Installing an approved anti-theft recovery system may also qualify you for insurance premium discounts! Consult with your insurance advisor for more information on available anti-theft recovery options suitable for your needs and region, and potential discounts.

What to do if your car is stolen

If your car is stolen, contact the police to file a report. Don’t try to retrieve it on your own, even if you have a tracking device installed. Provide police with all the data you have, including video-surveillance footage and GPS information. Be sure to keep copies for yourself of any documents you share with police. Ask the police for a copy of their report for your own files and insurance claim.

Next, contact your insurance company to learn how to file your claim. They’ll guide you through the process and let you know the exact information they need.

Do you want to learn more about car insurance and how to protect your car? Speak with an RBC Insurance Advisor by calling 1-877-749-7224 or get a quote online today.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.