Canadians and Insurance

October 6th, 2014 by admin

Having the right insurance information is critical. While standard home insurance policies cover a variety of areas, others are excluded. Yet, it's a challenging task to memorize all of this information. In her article, Lindsay Olson of the Insurance Bureau of Canada addresses common questions, contributing valuable knowledge and clearing up misconceptions.

Here are some statistics on Canadian's insurance views, and whether these beliefs are correct or false.

  • "67 percent of Canadians believe that, when calculating home insurance premiums, insurers consider whether the outside of a house is brick or aluminum siding." True. Many insurance providers consider the type of construction as one factor when calculating home insurance premiums. Construction type is especially relevant when calculating replacement costs for building.
  • "39 percent of Canadians believe that their home insurance covers them for damage caused by flooding due to spring run-off – the melting of large quantities of snow and ice." False. As we've discussed in past articles, most standard homeowners policies do not cover water damage from "predictable and preventable" weather events, for example melting snow. However, some providers do offer coverage for unpredictable events that are "sudden and accidental." 
  • "61 percent of Canadians believe that the cost of their home insurance is affected by whether their appliances are powered by gas or by electricity." False. In fact, the kind of home appliances you own has no bearing on your insurance premiums. Insurers calculate the cost of premiums based on your level of risk. Neither electricity or gas pose a higher risk than the other. 

If you are interested in learning more about homeowners insurance, contact Fundy Mutual. We also allow customers to get a free insurance quote online. Fill one out to find out how much money you can save!