Issue link: http://digital.canadawide.com/i/299622
YOU'RE COVERED ISTOCK S U M M E R 2 0 1 4 | G O I N G P L A C E S 55 I had only stepped out for a short while when my husband, who had good inten- tions, decided to do the breakfast dishes. He plugged the sink, turned on the faucet and went to do another household chore – for more than 15 minutes. Needless to say, the pool that formed on the f loor was large enough to make us wonder, "Are we covered if the hardwood starts to curl?" Fortunately we were, but not everyone is so lucky. Tiffany Ritchot-Marsden, a home and property insurance supervisor for CAA Manitoba Insurance, recalls helping a client who didn't purchase enough insurance to cover the cost of cleanup and repairs after a sewer backup in their basement shower. "[They] had purchased $5,000 worth of coverage, but it wasn't enough," says Ritchot- Marsden. "It was a stressful experience, but it forced them to look at the insurance they had and change the policy." Home Insurance 101 Melanie Little, another home and property insur- ance supervisor for CAA Manitoba Insurance, says homeowners should insure their house according to what it would cost to rebuild in the event it is destroyed. Called the replacement cost, it's not defined by market value or tax assessment, but rather calculations based on your home's features. It also extends to rebuild- ing fees such as debris removal and labour. When obtaining a home insurance quote, be prepared for a broker to ask you specific questions including: • How old is your home? • Is the wiring and plumbing original or has it been replaced? • How old is your roof? • How old are the furnace and hot water tank? • Do you have a wood or pellet stove? • Do you run a business out of your home? • Do you have a renter? Factors outside of your home can also a ect the cost of insurance, such as your dis- tance to the nearest re hall. On the upside, insurance companies o er discounts on such things as: • alarms (fi re, burglary) • sump pump • being mortgage-free • being a non-smoker • being claim-free for a certain amount of time Broad or Comprehensive? e next step is to select your coverage. While di erent insurance companies o er a variety of packages, there are two main forms of coverage: broad and comprehensive. Broad provides all-risk coverage on your home (building) for loss or damages unless excluded in the policy. It also covers named perils on your contents; only those perils speci cally stated in the policy are covered. Comprehensive coverage takes care of all risks on building and contents, but often comes with a higher price tag. A simple life folly can explain the di erence between these coverages. You spill red wine on your wall-to-wall carpet. Under both options, you'd be covered because the carpeting is part of the house. But if you spill that same glass of wine on your expensive area rug, which is con- sidered contents, only a comprehensive pack- age would allow you to claim that loss. The same applies if a child were to go rogue with a juice box on your good furniture. Homeowners might be inclined to lean towards broad coverage, thinking mishaps rarely happen and the price of a comprehen- sive package may be too great. But Little urges clients not to be swayed by cost when looking at insurance. "It's hard to pay that money up front for something that's intangible, but the peace of mind it gives is invaluable," she says. Still, insurance is not designed to cover every possible loss. Talk to your broker and read the policy to understand what you are covered for and what exclusions may apply. GP About the House What you need to know when insuring your home by Carly Peters Renew Roundup When it comes time to renew your home insurance, take a look at your policy and make any necessary changes to ensure you're covered. Points that your broker should be made aware of include any signi cant changes to your home, major purchases such as boats or a new in-home business. CAA Manitoba members can receive 10% off home insurance from CAA Insurance Company (Ontario). Call today: 204-262-6010 or toll-free 1-855-779-0677. p54-57YoureCovered.indd 55 14-04-10 2:29 PM