4 Things You Probably Didn’t Know About insurance Policies

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Applying for insurance has been part of our normal consumer routine especially when purchasing a property.  But, let’s be real, we rarely read the underlying terms of the insurance policy and solely rely on the information handed over by the agents. Well, to further add knowledge on how your insurance policy is priced, and other ins and outs of the business, a friend from home insurance Red Deer explained the holes of the insurance business that are most of the time forgotten or not realized by the consumer.  I’ll be sharing what I’ve learned from our coffee conversation.

 

  1. Your pets, specifically your dog plays a part in your homeowner insurance policy

Most insurance policies cover the cost of hospital expenses in case your pet bites a person or caused damage to property. But there are cases wherein the policy offered will not include coverage for your dog, and also similar cases wherein the insurer will not sell you a policy because you are a pet owner. In instances where you have to renew your insurance, companies also look at the history of your dog’s behavior if it has bitten anyone. If you have a furry friend, remember to ask your agent about the clause for the pet insurance. It’s best to be prepared.

 

  1. Renovation costs might not be included

When you decide to remodel or add a part to your house to serve as extension, ask your insurance company if the expense might be reimbursed. Chances are you may need to update your existing policy or sign an additional coverage for the remodeling. If an accident occurs during construction, they would not provide coverage without due updating done.

 

  1. Consider proximity to fire departments a priority factor when choosing a property

Residential homes near fire stations require lower overall cost to insure. When you’re located in a community that has its own fire protection unit, insurance costs will decrease. The insurance company rates the efficiency of the near fire department based on several factors such as its past record in dispatching and responding to alarms. Another unknown fact is that when a fire hydrant is near your property, insurance policy cost also decreases.

  1. Your claims can be reopened

If your insured property has been damaged and after assessment and filing of papers you’ve already received the amount to cover house renovations and then you see additional damage that wasn’t reported or filed in claim, you can reopen the claim. The insurance company will send an inspector to verify your additional item and if deemed included in the policy, then the company will provide additional insurance money. For most companies, claims can be filed up to one year after the date of damage or loss.

If you’re planning to purchase a house, check if you can find one that is near to a fire department. If you have a dog, verify with your insurance company what part of the policy covers your pet. If you’re planning to renovate,  consult with the agent first. And finally, do not be hesitant in filing claims, if you missed an item that needs fixing, always have it assessed. These are pretty simple things to remember so that you’ll maximize your insurance policy. The key is that you be detailed in declaring so that claims will be also sufficient.

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