Newsletter - Fall 2007

It is always smart to check with your broker or agent whenever you are planning a home renovation. Proper insurance protects homeowners against financial loss and liability, should an accident or an injury take place during a renovation or repair project.

• Any renovation that adds more than $5,000 of value should be reported to your insurance company. If you don't, the "Guaranteed Replacement Cost" section of your policy will be voided.
• Make sure the general contractor has their own insurance to pay claims that may be caused by them.
• Most policies will have specific/extra exclusions when the home is under renovations, including sewer back up and window breakage. Be sure to review your policy with your broker to find out how a renovation could affect your policy.
• Building materials may or may not be covered in your property insurance - be sure to check your policy.

Buying insurance can be confusing. There are so many things to consider and most people don't have the time or expertise to sort through all the fine points of their policies. An insurance broker has the expertise to educate and empower you. At the Neziol Group, we go to bat for you to ensure you get the right coverage for the best price with the service you deserve when the times comes to make a claim. At the Neziol Group, our goal is to:

• Properly educate you about your insurance options and responsibilities
• Offer you the best possible insurance coverage at the most competitive price we can find
• Support you throughout the claims process
• Treat you with personal attention, care and respect when you call us with questions or concerns

Neziol Tips
There are a number of ways to reduce your property insurance premiums. For example, you can earn discounts if you:

• Have an alarm system
• Insure your home and auto together
• Choose a higher deductible

A number of factors can affect the availability and cost of homeowner insurance on a property being purchased. For example, they include:

• past claims filed on the property (up to previous 5 years)
• past claims filed by the property purchaser on other properties
• physical characteristics such as old knob and tube wiring, old oil tank/furnace, leaky roof, cast iron plumbing etc.
• proximity to a fire hydrant (your insurance could go up if you are more than 1000 meters away)

Moving?
It's a good idea to provide your broker with information concerning your move (date, new address, details about the new dwelling, etc.). Also if you use a moving company, you should be aware that it will be the company's insurance policy that will respond first if there is any loss or damage to your property. Therefore, it is essential to check whether your mover has all the required insurance coverage.

In Ontario, companies are required to use Regulation 668, Fault Determination Rules, to assess fault in an accident for purposes of vehicle damage.These rules:

cover more than 40 accident situations using diagrams to illustrate specific occurrences;

can be applied to almost every possible road collision scenario; and,

are applied regardless of road or weather conditions, visibility, point of impact on the vehicles, or the actions of pedestrians.

These rules help insurance companies deal with vehicle damage claims quickly and economically.

Here are some examples... see if you can figure out who is at fault.

If automobile "A" collides with automobile "B" on a controlled access road while automobile "B" is entering the road from an entrance lane... who is at fault?

ANSWER: The driver of automobile "A" is not at fault and the driver of automobile "B" is 100 per cent at fault for the incident.

If all automobiles involved in the incident are in motion and automobile "A" is the leading vehicle, automobile "B" is second and automobile "C" is the third vehicle... who is at fault?

ANSWER: In the collision between automobiles "A" and "B", the driver of automobile "A" is not at fault and the driver of automobile "B" is 50 per cent at fault for the incident;In the collision between automobiles "B" and "C", the driver of automobile "B" is not at fault and the driver of automobile "C" is 100 per cent at fault for the incident.

Click here for more information on fault determination.

Dear Paul,
I am an interior designer and I am thinking about moving my office into my home. Will my homeowners insurance be sufficient as is or do I need to make a change? - Sincerely, Lisa

Dear Lisa,

Most homeowner policies exclude liability claims caused by a home office. For example, if you were being sued by a client or a delivery person who injured themselves as a result of a fall, your home policy would not pay for any legal fees, defense costs, or award if they were there due to your business. You really should add a liability extension or a small business package to your home policy.

Do you have a question
Ask the experts at Neziol Group. Email your questions to Paul Neziol or call 1-877-288-9558.

People who love older houses (generally pre 1945) often say those homes have a charm that just can't be duplicated. That's a virtue, but it's also a problem: Features that make old homes charming are things that are difficult and expensive to replace, making them difficult to insure properly.

It's important to let your insurance company know that you have an older home with unusual or distinctive finishes or building techniques. Ask your insurance company for an appraisal and be sure your policy will have a "guaranteed replacement cost" clause. This will insure your home for the full replacement cost regardless of the amount of insurance you have on the home. Ask about coverage to protect against new building by-laws that could increase the cost to rebuild. On older homes this could result in thousands of dollars in additional costs.

Some insurance companies don't offer these features on older homes and may not offer their best policy but rather a cheaper version with more exclusions and less protection. In the end, it is best to talk to your broker who can be sure to get you the protection you need.

Here are some tips to keep you protected while you are away:

• Turn off your computer and disconnect it from the Internet. If you save personal information in your computer, make sure it is difficult to access.
• During the heating season make sure you have someone check your home daily to be sure the furnace is still on. Most polices exclude damage from freezing pipes and resulting water damage unless you have a "competent person" checking your home daily.
• If you own a cottage or seasonal policy shut the water and drain the pipes even if you are gone for a weekend.