The Importance of Home Insurance in Oshawa
On a quiet Sunday morning in the middle of the winter stormy conditions an alert woke many Ontarians up. It made them restless, scared and some were in evacuation mode. It was the nuclear alarm on January 12 2020. Another alert came to us on our cellular devices that there was no threat and the previous alert was sent in error. This alert coincided with bad weather, ton of rain in parts of Canada.
This made me think of the nuclear disaster in Chernobyl and the 2 atom bombs dropped towards the end of World War 2 on Japan. These disasters caused enormous loss of life and property.
As Insurance professionals we always think of how insurance works in case of such disasters. This post is written to bring that part of the property insurance policy to light which many people do not read nor do they think about. Some think since they have property insurance, every peril is insured. The part of insurance we will be talking about is called EXCLUSIONS.
As per International Risk Management Institute, Inc. Exclusion is a provision of an insurance policy or bond referring to hazards, perils, circumstances, or property not covered by the policy. Also as per International Risk Management Institute, Inc. a peril is Peril is the cause of loss.
This made me think of the nuclear disaster in Chernobyl and the 2 atom bombs dropped towards the end of World War 2 on Japan. These disasters caused enormous loss of life and property.
As Insurance professionals we always think of how insurance works in case of such disasters. This post is written to bring that part of the property insurance policy to light which many people do not read nor do they think about. Some think since they have property insurance, every peril is insured. The part of insurance we will be talking about is called EXCLUSIONS.
As per International Risk Management Institute, Inc. Exclusion is a provision of an insurance policy or bond referring to hazards, perils, circumstances, or property not covered by the policy. Also as per International Risk Management Institute, Inc. a peril is Peril is the cause of loss.
What Are Home Insurance Exclusions?
Under a common home insurance policy there are many perils that are excluded. Also there are certain circumstances that are not insured. Hence all hazards, perils, circumstances that are not covered fall under exclusions.
Exclusions are listed in the policy documents that you receive from the insurance company. Some common exclusions are as follows:
We make sure our client understands the insurance product before they make the final purchase. We inform you why we recommend the insurance product and why it is important to insure properly. We are an independent Family owned brokerage that works for the client, shops for the best product and the best rate for our clients. Call our office at 289 274 4807
Source:
Insurance Bureau of Canada Website
Financial Services Commission of Ontario
Exclusions are listed in the policy documents that you receive from the insurance company. Some common exclusions are as follows:
- Flooding or water damage caused by floodwater- Certain areas are prone to floods, especially when extreme weather and seasonal runoff are combined. Flood damage is not generally covered by homeowner’s insurance. Some insurers have developed coverage for overland flood as an optional coverage. Sewer backup/water damage coverage may be purchased as an add-on to your existing policy.
- Landslides, avalanches, earthquakes and other earth movements - While these are not covered in a home insurance policy, resulting damage from a fire or explosion caused by earth movement would be covered. Coverage for damage caused by an earthquake may be purchased as optional coverage.
- Damage arising from the freezing of indoor plumbing - If you are away from your home during the normal heating season, you must drain the plumbing system or have your home checked regularly to ensure that heat is maintained. Ask your insurance representative under what circumstances you need to have someone regularly checking your home. Such precautions are necessary to ensure your policy will cover freezing related damage.
- Damage from freezing outside the home- This is not covered, nor is melting or moving snow and ice, and heaving frost. Optional coverage for damage caused by roof ice damming is available for purchase.
- Direct damage resulting from intentional application of heat (for example, clothing shrunk by a clothes dryer, burned by an iron) This is not covered. However, if the iron were to set the clothing on fire and the flames spread to the room and its contents, the resulting damage would be covered.
- Damage by birds, vermin, raccoons, rodents or insects This is excluded, except for damage to window glass.
- Fuel oil leaks
- Vacancy Loss or damage is not covered if your home has been vacant for 30 consecutive days.
- Damage to illegally acquired property.
- Losses caused by policyholder’s criminal acts
- Losses due to war, terrorism or nuclear risks
- Damage caused by wear and tear, rust, corrosion or gradual deterioration.- All property insurance policies will insurance any loss that is fortuitous, sudden and in the future. Wear and tear, rust corrosion is all a daily process. It is the responsibility of the client to make sure the property is well maintained.
We make sure our client understands the insurance product before they make the final purchase. We inform you why we recommend the insurance product and why it is important to insure properly. We are an independent Family owned brokerage that works for the client, shops for the best product and the best rate for our clients. Call our office at 289 274 4807
Source:
Insurance Bureau of Canada Website
Financial Services Commission of Ontario
