Dos and Don’ts of Insurance

Dos and Don’ts

Tips for first time home insurance buyer:

Do remember that you are entitled to insurance advice that puts your needs first.

B.C. insurance consumers can be confident that we have an excellent system of consumer protection, under the auspices of the Financial Institutions Commission, and for insurance intermediaries, the Insurance Council of B.C. All property and casualty insurance intermediaries must be licensed and must adhere to a Code of Conduct that requires that they only recommend products that meet the customer’s stated needs. For further information go to www.insurancecouncilofbc.com.

Don’t think an insurance broker is the same as an insurance representative

Insurance brokers have a duty to act as an advocate for the client and to represent that client’s interest to the insurance company. The insurance brokers’ relationship with you doesn’t end with the sale but starts with the sale.

Do be honest about the value of your home or contents

All Property and casualty insurance policies must include the Statutory Conditions that are set out in the Insurance Act. Those conditions put responsibilities on people who are insured as well as the insurer: Insured parties cannot falsely describe the property to be insured. They must advise the insurance company (usually through their broker) of any material change to the property that would affect the terms of the policy. Your insurance broker can explain the Statutory Conditions.

Don’t underestimate the value of your home or its contents

In most cases policies covering residential dwellings cover your contents as a percentage amount of the total insured value of your home. So underestimating the insurance value of your home could limit the coverage on your contents. In addition, the policy will include certain limits for special possessions like jewelry, art or collections. If you’ve got an extensive rare wine collection or family heirlooms, let your broker know so that he or she can provide adequate coverage.

Do be prepared

An insurance broker will perform an insurance evaluation on your home and will ask you questions about your home and lifestyle to help tailor a policy that fits your needs. There are many factors that will determine your insurance coverage. These include but are not limited to:

• Age
• Burglar or fire alarm installation
• Property in storage
• Rental or boarding accommodations in your residence
• Recent renovations or additions to the home
• If your home has recently been re-appraised
• Employment of in-home staff or a home-based business
• Recent major purchases such as electronics, jewelry and sporting equipment
• Lifestyle changes such as frequent travel, children arriving or leaving, etc.

Talk to your insurance broker for more information.

Don’t forget to take inventory of your contents

Yes, it’s covered, but if you experience a loss, you’ll need to provide information about what was lost. The easiest way to do this is to take digital pictures or video footage of everything in your home – books, jewelry, sporting equipment, furniture and more. Store your record off-site where it can be accessed should anything happen to your home or contents. Also consider having valuable items such as paintings and jewelry appraised and do keep receipts for any large purchases such TVs, stereos, etc.

Do be prepared for the worst, but expect the best from your insurance broker

In the event of a loss or potential claim, talk to your broker first. Your broker is on your side in these times and will be able to advise about your best course of action.

Do ask your broker if you’re not sure

Your broker will work in your best interest and if you are considering a change in lifestyle or renovating your home, your broker will be able to let you know how these factors would affect your insurance. Insurance brokers will not or should not pressure you to make choices or decisions you do not want to with regards to your insurance policy. If you’re not sure, ask. Your best insurance is an insurance broker.

Do be proactive against potential claims and losses

Insurance brokers are looking out for your long-term insurability and can give you tips on how to prevent and avoid damage to the home and what to do in the event of a claim. Consumers can also visit: www.bestinsurance.ca for consumer advice.

Visit www.ibabc.org for more information.

About IBABC

The Insurance Brokers Association of B.C. serves as the voice of the general insurance brokerage industry and promotes its members as the premier distributors of insurance products and services in British Columbia. IBABC is the primary provider of pre-licensing and continuing professional education for the general insurance brokers in B.C. IBABC represents the interests of the public and its member brokers to government and to industry stakeholders. 

IBABC represents in excess of 700 property and casualty insurance brokerages that in turn employ more than 8,000 people in approximately 140 B.C. communities. Member offices are the consumer's choice for the vast majority of all property and casualty insurance policies and premiums written in the province. Consumer satisfaction with their insurance brokers is high. In survey after survey, consumers report that they value their brokers' knowledge, professional advice, unbiased review of their needs and coverage options, and service and advocacy in the event of a claim. IBABC member brokerages have an average of 13 staff members and therefore fit within the small to medium-sized enterprise (SME) category. 

Enquiries should be directed to switchboard at 604.606.8000.

Visit our website at www.ibabc.org
and
www.bestinsurance.ca