Newsletter - Fall 2009

When it comes to your auto insurance, the last thing you want to hear about is a rate increase but unfortunately, you will be hearing about it in the news over the coming months. While the poor economy is partly to blame, the primary reasons for rising auto insurance rates are: escalating accident benefit costs, increased rehabilitation and medical costs, overuse of the system and fraud. Drivers in the GTA may face even higher increases because the costs to assess, treat and compensate drivers in the GTA have risen more than 70% over the past few years. Government officials are reviewing new proposals for changing auto insurance but in the meantime, it is likely we will all be saddled with increased premiums. Keep in mind that you still have some control over your insurance costs. These are some measures you can take to help keep your rates down:

• Make sure you are rated correctly
• Make sure you are receiving all discounts you qualify for
• Raise your deductible
• Delete coverage you don't need
• Bundle your home and auto policy together
• Avoid tickets
• Pay your entire bill up front

Now is the time to Call your Neziol Insurance Office and review your policy.

Did you know?

You could get a rider on your auto insurance policy that would guarantee no rate increases for the first accident and only minimal increases for a second one in a five year span. Ask the Neziol Insurance Group for more information.

With record-breaking rainfall this past summer — it's not surprising that thousands of people experienced water damage.

In fact, more claims are made for water damage than fire damage! Unfortunately though, many people are caught by surprise on what their coverage entitles them to.

Now is the time to carefully review your policies to ensure you have adequate coverage, particularly sewer backup. Inadequate coverage can be costly.

If you want to know what types of water damage your policy covers, ask your Neziol representative to explain what is covered and what is not.

Here are some ways to protect your home from water damage:

• Raise any personal belongings that you have stored in the basement off the floor to prevent water damage.
• Consider installing backflow valves or a backflow prevention device to prevent sewer backups.
• Keep your eavestrough and downspouts clear. Disconnect eavestrough downspouts if connected to weeping tile system.
• Ensure proper drainage around your home — consider adding top soil with a minimum gradient of five degrees slope away from your home.
• If you have a sump pump, make sure it is switched on and in good working order. Consider alarming it and adding a battery backup.

What to do in the case of a flood

• If possible, stop the water from entering your home.
• Call a water restoration company to remove the water and clean up.
• Don’t touch electrical wires, appliances or devices.
• Take photographs of any damaged property.
• Keep receipts for any clean-up costs incurred.
• Contact your Neziol Insurance office to report any damage.

When it comes to home insurance, the value of your home is not based on the market value of the property, but rather the likely cost to rebuild to original standards in the event of a complete loss.

That's why it's important to regularly update your policy. For example, many people spend thousands of dollars over the years on their home renovations, additions and landscaping but don’t consider the expense to rebuild should they experience a complete loss. Keep in mind, fences, gates, paths, drives and swimming pools may need replacing — so it’s a good idea to check your policy for coverage in these areas.

Ask your Neziol representative how you can best protect yourself from the increasing costs to rebuild your home in the event of a total loss.

Dear Paul,

We had a bad storm and a power outage last night. Luckily we were fine but my neighbour experienced a power surge and his computer and iPod speakers got fried. Do home insurance policies typically cover any kind of power surge damage?

- David C

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Dear David,

A common exclusion on a cheaper policy would be power surge damage to computers and appliances. We always recommend that your policy include this type of coverage. It could have been worse. I’ve heard lots of horror stories about damage to brand new large screen TVs, appliances, alarm equipment and more. Ask your Neziol representative about power surge protection and remember to protect your valuables with quality surge protectors and by unplugging appliances and electronic equipment during the power outage and leave them unplugged until electricity is restored.

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Dear Paul,

I am considering moving my small business to my home. Will my home policy need to change?

- Joanne W

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Dear Joanne,

Good question. If you were sued by a client or delivery person who injured themselves at your home, your home policy would not pay for any legal fees, defence costs or awards. Therefore, if you are operating a small business from home, you should add a liability extension or a small business package to your home policy.

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Do you have a question

Ask the experts at Neziol Insurance Group Insurance. Email your questions to Paul Neziol or call 1-877-288-9558.

While we all love the mood and atmosphere candles exude, safety must always be a primary concern. Almost twice the number of home candle related fires occur in December.

Studies show that by far, most candle fires were caused by combustibles being too close to the candle. The next most common cause of candle fires was due to the candle falling over or being knocked over by wind, doors, children or pets.

To ensure fire safety, always make sure candles have been properly extinguished when you retire for the evening. Never leave children alone in a room with an open flame candle. Also when leaving a room with a lit candle, remember to extinguish it. Most importantly, be sure to have working smoke alarms in your home. As an alternative to a live flame, there are many battery operated, LED bulb style candles. They can still create atmosphere, but more importantly, they are safe!

Candle safety tips

• Don't leave burning candles unattended.
• Avoid buying candles with multiple wicks that are close together.
• Use well ventilated candle holders that are sturdy and will not tip over.
• Avoid wooden or plastic holders, as these can catch fire.
• Never drop objects, such as matches, into candles.
• Keep burning candles away from materials that can catch fire (e.g. curtains, decorations, clothing).
• Keep burning candles away from children and pets.
• Extinguish all candles before you go to sleep.

Any driver involved in a collision where damage to vehicles or property is more than $1,000 should report the collision to a Collision Reporting Centre. Towed vehicles must go directly to a Collision Reporting Centre.

Police will come to the scene when one or more of the following situations occur:

• Collisions involving injury or death.
• Criminal activity involved in collisions (e.g. impaired driving, stolen vehicle, assault, etc.).
• Collisions involving federal, provincial or municipal vehicles (including transit vehicles).
• Collisions involving a person who is uninsured or is a suspended driver.
• Collisions involving vehicles transporting dangerous goods.
• Collisions involving damage to private, municipal or highway property.