Insurance companies DO NOT want to pay out claims. You need to be an active participant when buying Insurance.
When was the last time you read your full Insurance policy? Have you noticed how many pages it is and how much small print there is?
Friends of mine were involved in a serious motorcycle accident many years ago and have been fighting the insurance company ever since. When I ran into them recently they cautioned me to review all of my insurance policies. Did I heed their warnings…nope…and guess what? I had a problem with a property and low and behold the Insurance company would not cover the claim! Here’s what it boiled down to…I had a “named perils” policy…which I do not recall ever agreeing. This is what some of the “named perils” were, impact by aircraft, spacecraft (believe it or not), or other land vehicle. Exclusions included loss or damage to electrical devices or appliances (hello?), automobile, watercraft, other vacant land.
So, my point is…go home, pull out all of your insurance policies, auto, home, cottage, life. Read over ALL of the fine print. Know what you are covered for and what you are not. Pay for extra coverage where you need it…don’t pay for things that don’t make sense (spacecraft invasion)…and make sure you know what your deductibles are. If you don’t understand something ask your Insurance Company for clarification…and get it in writing!
If you are selling a home or cottage you need to ensure that it is insured…especially for liability. And, when you have an offer the agreement specifically states that you have to have the buildings insured against fire and damage until closing.
If you are selling a vacant lot, you need third party liability. Usually this is part of your home insurance, but as I mentioned above, it wasn’t covered on my insurance…so be sure to double check and make sure you have the right coverage.
When buying a home or cottage you should ensure that you can insure it before firming up on the offer. Insurance companies don’t like vacant residences, they don’t like wood stoves, they don’t like seasonal access, they don’t like oil tanks, they don’t like rentals, and many other points. You will be able to get insurance, but you need to disclose to them any of these points and make sure you are covered appropriately. Don’t give them reason to reject a claim!
The Insurance Bureau of Canada have been running a series of TV ads recently. Here’s their website link: www.ibc.ca for more information.
Watch for my next Blog on….
Mosquitos, Snakes and Bears, Oh My!
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. Kathy Dimaline is a Real Estate Broker for RE/MAX Grey Bruce Realty Inc. The comments on this Blog are the opinions, only, of Kathy Dimaline and do not constitute any legal advice or legal opinion and does not represent the interests or opinions of RE/MAX Grey Bruce Realty Inc., brokerage.
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