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