There's no doubt an overall increase in the number of extreme weather events has caused the insurance industry to undergo significant changes. While no one can predict the frequency or location of major storms, there is an industry consensus that the intensity of storms is becoming more severe and that insurance companies need to protect themselves against the associated risks.
The new reality also presents increased risks to homeowners, in terms of both vulnerability to natural threats as well as potentially compromised coverage. Paying close attention to your policy details if vital. You will likely discover changes to coverage conditions and rates overtime. For this reason, policy owners need to be mindful of their policy terms, and also take whatever steps they can to avoid extensive damage from extreme weather.
Here are 6 big home insurance misconceptions:
1. 30-DAY VACANCY RULE. For example, if you are a property owner who rented property remains vacant for more than a month, your insurance company can deny coverage such as fire or water damage.
2. JEWELRY COVERED ONLY UP TO A LIMIT. Home insurance only covers for theft or loss of precious jewelry up to a "sub-limit." Go to www.ibc.ca
3. SEWER BACK-UPS, EARTHQUAKES ARE NOT COVERED BY BASIC POLICY.
4. MAINTENANCE EXCLUSIONS. Poor upkeep of property can be grounds for denying a claim.
5. UPGRADES TO YOUR HOME CAN AFFECT YOUR POLICY. A few renovations or remodelling can have a huge impact on your policy. Make sure you disclose these to your insurance provider.
6. LIMITATIONS FOR RARE ITEMS. Limitations apply for such rare items like stamp collections or coin collections.
