LOSS PREVENTION

Insurance is great, but prevention is better

They say that an ounce of prevention is worth a pound of cure.  Think of insurance as the cure (sort of) to a number of bad things that could happen to you or your family.  Yes, if you have a fire or theft, insurance will help you pick up the pieces.  But most people who have lost their homes in a fire - even those with great insurance coverage - will tell you that they would prefer if it had never happened in the first place.  Insurance give syou financial peace of mind.  If you have the right coverage, no theft, fire or accident can leave you broke.  However, there are certain things that insurance cannot fix.

If your wedding ring or a priceless family heirloom is stolen in a break-in, insurance may cover the actual market value of the item, but the sentimental value cannot be replaced.  If you suffer a fire and all your family photos are destroyed, you will feel a tremendous loss,even though the photos have no monetary value.  Insurers are in the business of compensating people when they suffer losses.  Being so close to so many human tragedies, insurers are passionately committed to loss prevention.  They know that it is better to avoid suffering that to try to make up for it.

If your home is uninhabitable for a period of time, you may need to move to a hotel or even a new, likely furnished, apartment.  Some home insurance policies will coverage additional living expenses you incur during this time, such as meals (if you are in a hotel) and room charges.  Be sure to ask your insurance representative if you have this type of coverage, so that if disaster strikes you can focus on putting your life back together without worrying about the added costs.

Courtesy of the Insurance Bureau of Canada

REAL LIFE CLAIMS

Learning from Losses

Overloaded electrical sockets cause fire.

Location:  City home

Cause of loss:  Electrical fire

Cost of loss:  $150,000 in damage

Details of loss:  The insureds were sleeping when their smoke detector went off.  Their home was on fire, so they fled and called 911.  The home sustained extensive fire and smoke damage.  The cause of the fire was an overloaded electrical socket in the basement, which overheated or shorted out and ignited belongings that were stacked near the plug

Lessons learned:  Do not overload electrical sockets and ensure that all electrical work is done by a qualified electrician or, at a minimum, inspected by the electrical authority.  Do not pile combustible belongings close to electrical sockets.  make sure your home is equipped with smoke detectors that are operational and test them regularly.

Source: SGI's the Broker, Fall 2012

REAL-LIFE CLAIMS

Learning from Losses

 

Pinched cord results in two deaths

Location:  City home

Cause of loss:  Electrical fire

Cost of loss:  Reserve sett at $135,000

Details of loss:  The owners of a house were sleeping in the basement when a fire started.  It was determined that an electrical cord to a television was pinched and started the fire.  The house was a total loss.  Tragically, the owners were unable to escape and died in the fire.

Lessons learned:  Have your home inspected by an electrician to check for any unknown hazards.  Make sure your home is equipped with smoke detectors that are operational and test them regularly.

Source: SGI's the Broker, Fall 2012

REAL-LIFE CLAIMS

Learning from losses

 

 

Garage destroyed, house damaged in block heater blaze

Location:  City home.

Cause of loss:  Fire caused by a faulty block heater cord.

Cost of loss:  $160,000 in damage.

Details of loss:  The insured got up in the morning and went in to the attached garage to plug in a vehicle so it would be warm for the drive to work.  About an hour later, the insured went to get the newspaper and noticed smoke coming from the garage.  An attempt was made to extinguish the fire but was unsuccessful.  Emergency services was called and the fire department responded, but the garage was completely destroyed.  The rest of the house suffered major fire, smoke and water damage.  It was determined the fire was caused by the block heater cord.

Lessons learned:  Have your vehicle serviced regularly, including your block heater.  Make sure your vehicle's extension cord is rated for the amperage of your block heater and is in good condition -- with no frays, cuts or other damage.  Always disconnect cords by holding the plug and not be pulling on the cord.

Source:  SGI's the Broker, Fall 2012

PMC TRAVEL CHECKLIST

Beyond helping you find the right travel health coverage, there are many things you can do to ensure you travel with peace of mind.

1. Understand entry requirements and safety issues for the country you are visiting.  Visit the Canadian government’s travel website at www.travel.gc.ca. Here you will find information on passport and document requirements. The site will advise of any travel warnings, personal safety issues and immunizations required for entry.

2. Ensure you purchase the correct coverage for the full duration of your trip. Read the travel provisions to make sure you understand your coverage and what is and isn’t included.

3. Don’t forget to take your travel health policy with you on your trip. Having your policy on hand will guarantee that you have the proper information available if you require medical services. Some countries, like Cuba and certain countries in Europe, require proof of health insurance before tourists can enter. Your Blue Cross or Travel Underwriters travel health policy will meet this requirement.

4. Be certain that you understand what to do in the case of an emergency. Remember to keep all emergency numbers handy in case you need help. Note your policy includes the number for 24-hour worldwide assistance if a medical emergency occurs in a foreign country.

5. If a pre-existing condition applies to your plan, make sure you understand what that means.  Many plans will still cover you if your pre-existing condition is stable and controlled for at least 12 months. Understand the insurance company's definition of stable and controlled. 

6. If you have any concerns when completing a medical questionnaire, please take the questionnaire to your physician to complete with your updated medical information.  Remember that individuals who complete a medical questionnaire also agree to report any changes in medical conditions that would alter their medical questionnaire prior to departure.
 

Do You Have The Right Insurance?

How does RV Insurance differ from Auto Insurance?


With summer just around the corner many people are pulling out the RV and getting ready for camping trips.  At PMC Insurance we provide many different types of insurance.  RV's can be significant investments and we want to help you protect your investment.  Come and talk with us about RV insurance options.  


If you're looking at recreational vehicle for your family holiday, you might want to call your insurer before making a down payment. Different types of RVs call for different types of insurance and the costs and coverage may influence what type of RV you decide to buy. You also need to find out if your insurer offers RV insurance in the province where you reside, since not all insurers provide RV coverage in all provinces.

Most RV policies fall into three basic categories:

Will my insurance policy automatically cover my rental vehicle?

This is a common question that is asked of customer service agents at car rental companies all over the country. Many people assume that their auto insurance will follow them no matter what vehicle they are driving. This is not the case when it comes to rentals.  Your policy will not automatically provide coverage for a rental vehicle. Not knowing the exact details of your specific policy, employees at the car rental companies will not be able to give an accurate answer to your question.

In order for a rental vehicle to be covered, your policy needs to include several specific coverage options. First, you must have both collision and comprehensive coverage on your personal vehicle.  Collision coverage pays for damage that is sustained to your car when you hit another vehicle or object, and comprehensive insurance covers your vehicle against other losses, such as fire or theft.  Since both of these coverage options are not mandatory, it is possible that you do not have them added to your policy. This especially may be the case if your car is older, or if you are trying to keep your premium low.

In addition to these two options, you must also obtain an SEF 27 or “Legal Liability for Damage to Non-Owned Automobile” endorsement, which transfers the coverage from your personal vehicle to the rental vehicle.  Your broker can assist you in arranging for this additional coverage.

Your Home Insurance Questions Answered

At PMC Insurance, we get a lot of emails with questions surrounding home insurance. To help you understand your home insurance policy and how your insurance premiums are calculated, we've collected a few of the most frequently asked questions and answered them for you.

1. Why do I need home insurance? 
Your home is often the biggest investment you'll make in your life. It's also one of the most important possessions you will own; it's where you and your loved ones live. It's your foundation and base, where you go after a long day of work and where you relax. Home insurance protects your home and its contents from loss and damage. This loss or damage could be due to theft or natural causes like thunderstorms and earthquakes. Home insurance also has a liability component, covering you in the event that someone harms him or herself on your property.

2. What are the different kinds of home insurance policies? 
There are three main types of insurance. Comprehensive policies covers your home and its contents against all risks, except for excluded risks. This kind of policy tends to give you the most coverage, and as expected, costs the most. Basic / Named Perils insurance is a type of insurance that covers you against specific risks and is not all-encompassing likeComprehensive. A Broad insurance policy is a mix between the Basic and Comprehensivepolicies, offering one kind of insurance for your property and another for your contents. For instance, you may choose to have your property covered for all losses and damages, and only specific items in your home covered.

3. How does an insurance company calculate my premiums? 
There are many factors that contribute to your insurance premiums. Primarily, an insurance company will look at the cost of replacing your home and its contents. The more expensive your house, and the more costly items you own, the higher your premiums will be. The neighbourhood in which you live also comes into play, as different neighbourhoods have different levels of crime. Your home's age is also a factor, as older homes tend to have more problems and newer homes tend to have fewer.

10 Insurance Scams Homeowners Frequently Try to Pull

Many homeowners fudge values a bit or make less-than-honest estimates when filing a claim with their homeowners’ insurance carrier with the attitude that they’re only taking back money that they’ve already paid. This attitude is not only criminal, but also costs the community money in raised premiums across the board. Here are some of the most commonly filed bogus homeowners insurance claims.

1. Overstating Value – In the event of a break-in, determining the value of your stolen possessions can be difficult. Overstating the value of a family heirloom or other object with more sentimental than monetary value can be tempting, but it’s important to remember that doing so is insurance fraud.
2. Storm Damages – When a home sustains damage from storms or other events that are covered by their policy, some homeowners are tempted to blame damages that occurred through non-covered events on the storm as well. Unscrupulous homeowners may also damage their own property to receive a settlement.
3. Staged Fires – The idea that a homeowner could set fire to their own home is a shocking one for most people, but it does happen. When facing foreclosure or other financial devastation, some desperate homeowners have been known to resort to arson. In addition to criminal insurance fraud charges, they almost always face arson charges as well; this can add up to hefty fines and significant prison time.
4. Salesman-Induced Fraud – This common scam is typically perpetrated by a salesman with most clients being unaware of the legalities; touting the ability of their equipment to detect “microscopic siding damage from hail” or other damages, these shady salespeople bill insurance companies to replace virtually undamaged siding or other surfaces.
5. Underwriting Fraud – Most homeowners don’t realize that being dishonest on insurance applications or refusing to disclose important information is considered fraud, and can carry criminal penalties. Fudging the truth to get a better premium may be common, but it’s unethical and illegal.

Winter driving habits that can cost you

There is no question that harsh winter weather can wreak havoc on your vehicle. From snow, slush, and salt damage to treacherous driving conditions that can increase your chance of a collision, drivers need to be extra cautious during this snowy season.While you can’t control the weather, you do have power over certain practices that put you at greater risk for theft or damage and can be easily avoided. Here are a few winter driving habits that can be costly.

Leaving your running car unattended.

On frosty winter mornings, many people start their car and go back into the house, leaving the vehicle running in the driveway to warm up the engine and de-frost the windows. Or, they don’t turn off their car when they run into a convenience store or ATM “just for a minute”. But an unattended car is an open invitation to thieves. If you have to leave your car for any period of time, turn off the ignition and lock the doors. It may seem inconvenient, but it’s not nearly as much trouble – or as embarrassing – as being stranded or having to report the vehicle as stolen.  

Driving with all-season tires instead of snow tires.

Leaving your all-season tires on your vehicle may not be the safest option during the winter months.  Studies have shown that winter tires are more effective at preventing accidents during the cold winter months than all-season tires. They have deeper treads to cut through snow and help you stop, and they are made of rubber compounds that don’t lose their grip when the temperature dips below 7 ° Celsius as with all-season tires. Besides safety another benefit to switching is some insurance companies will even offer you a discount if you install four winter tires on your vehicle – check with your insurance professional.

Forgetting to clear the snow from your windows and roof.

Before you head out on the road, it is important to clear the snow from all windows on your vehicle – front, back and sides – to ensure you have an unobstructed view.  Be sure to clear off the roof of your car as well, as chunks of snow and ice can blow off your car as you drive, causing a hazard for other vehicles and yourself which could potentially lead to an accident.

Keeping your car unlocked to avoid freezing.

Being unable to open your car doors because the locks have frozen is not an experience you want to have, especially standing outside in sub-zero winter temperatures. You may be tempted to leave your car unlocked so that you can still access it, but then so can would-be thieves.Always lock your car as a precaution, even if you’re away for only a few minutes. Invest in a purse or pocket size bottle of lock de-icer for those really frigid days. It only costs a dollar or two, a small investment that could save you from the big costs and headaches of a break-in or theft.

Leaving valuables in plain sight.

When you leave valuables in your car where they can be seen, anything from expensive electronics like a satellite radio, purchases from your shopping trip or spare change for the drive thru, your car becomes a target for thieves. Even if your car isn’t stolen, a thief could smash your window and take your belongings.Keep these items out of sight by storing them in your trunk, glove box or centre console. If you don’t have a trunk, invest in a hatchback tonneau cover or other device that will conceal the storage area.Some items left in your car such as sports equipment, a laptop computer or shopping purchases are not covered under your auto insurance policy; they are covered under your home insurance policy. With a car break-in you may have to make two separate claims, and that means paying two deductibles.In the unfortunate case of an accident or theft, do you know if you’re covered? Talk to your insurance professional about your policy