Ask the Professionals Q: Why is Sewer Back-Up/Water Escape suddenly such an issue on homeowner insurance policies? A: Since 2006 the average cost of a sewer back-up/water escape claim has increased from $15,000 to over $55,000. This is due to a number of factors. Better quality, professionally finished basements, with high end electronics and appliances have become more and more the norm for many people. The basement is no longer a storage room but an integral part of the home. This, combined with more frequent and severe weather events has made larger loses inevitable. Difference insurance companies are choosing different tactics to mitigate their exposure to these claims. Some have placed severe restrictions on the total amount the will pay for sewer back-up/water escape losses. Others are increasing deductibles for these types of losses, and stilll others are adjusting their overall rates. Some are removing the coverage entriely in certain areas of the province. Do you know your insurer's approach to this issue? Ask today!   Q: Why are Oil tanks suddenly an issue on homeowner insurance policies? A: Over the past few years most insurers have experienced significant cost in cleaning up oil spills from residential sources. Many companies are now asking for confirmation and supporting documentation that confirms the age and installation of a residential oil tank. The most common questions (and insurer's position) are as follows: • Is the oil tank buried?  If yes, all insurers that we represent will decline to insure the property • Is the oil tank above ground but out side? If yes, all insurers that we represent will want confirmation and supporting documentation that the oil tank is less that 20 years old and in good condition. • Is the Oil tank inside? If yes, all insurers that we represent will want confirmation and supporting documentation that the oil tank is less that 25 years old and in good condition

Failure to provide written documentation will mean the insurer will decline to insure the property.

As this is becoming a major issue in the availability of insurance coverage we recommend new purchaser make it a condition of the purchase that adequate documentation pertaining to the age and condition of the oil tank be included in the offer to purchase. Existing clients should realize that oil tanks have a finite lifespan and should be prepared to update their oil tank if it is over 20 years old.

 

Q: Why does Etherington Insurance need to inspect and measure a property before providing a homeowner insurance quotation? When I call other agents or brokers they just asked me what I paid for the house and give me a quotation based on that.

A: At Etherington Insurance we inspect and measure all properties prior to providing a quotation for one main reason - your own protection.

The idea of a homeowner insurance policy is to insure the residential building for its estimated replacement or rebuilding cost. An insurance industry accepted estimator is used, however, the entire formula is based on the ground floor exterior square footage measurement of the building. Factors are then added or subtracted from the calculation for additional features that may or may not be present in the house, the location of the house (where in Canada) and the time of year that the calculation is prepared. Only when this has been completed can we provide an accurate homeowner policy quote. This inspection can normally be complete the same day our office is contacted for a quote.

An agent or broker that chooses not to inspect your property does so for only one reason - their own convenience. Many are located miles from Georgina and have no interest in seeing the property that they insure. They will provide you with a quotation a bit more quickly, but how accurate can it be?

At Etherington Insurance our customer’s interests and protection comes first. It may not always be convenient, but it is the right thing to do.

Q: Why do I need to buy tenants insurance?

A: Tenants insurance provides insurance protection on your contents and personal belongings. When clients take the time and list everything that they own, they are often shocked by the value of what they own. The tenants package can also protect you in the event that you are sued for negligence if some one slipped and fell on your walkway or if you cause a fire in the apartment you rent.

Q: I run a small business in my home. Do I really need to buy business insurance?

A: It is a good idea to arrange insurance coverage on any home based business. These policies are relatively cheap and provide coverage for your business property and product as well as extending liability to cover your business operations in your home. Your regular homeowner insurance policy likely has strict limitations on business property and offers you no liability protection for the business operations in your home.

Q: I plan on going away for a holiday this winter. Is there anything that I should do before leaving for the sunny south?

A: Precautions should be taken before you go away to ensure that your homeowner insurance policy will respond in the event of a water damage claim. Most policies have a requirement for you to arrange for daily inspection of the property by a competent person if the dwelling will be left unattended for a period greater than 72 consecutive hours (3 days). This inspection is designed to check that the heating system is operating adequately. Another alternative is to arrange to have the water supply shut off and plumbing and appliance systems drained.

It is also a good idea to arrange for someone to shovel your driveway and front walk, use lamp timers to turn lights on and off, stop or redirect delivery of mail, flyers and newspapers, and turn off an answering machine. A monitored alarm system will give even more peace of mind and protection. Your may want to consider removing valuables and putting jewellery in a safety deposit box. Finally, make sure all doors and windows are locked and barred.

Q: Christmas will soon be here. Are there any tips for home safety during the Holiday season?

A: Each year we hear of the tragedy of a house fire that occurs during the holiday season. Several precautions can be taken to ensure a safe and happy holiday season:
• Do choose a fresh cut tree. If the needles are already falling of, it won’t take long for it to dry out once it is in your home. Dry trees are a fire hazard.
• Do water your tree daily.
• Do check the lights before putting them on a tree. If they are in poor condition throw them out and buy a new string of lights.
• Do be careful when using real candles. Never place them near the Christmas tree and always extinguish them before leaving the room.
• Don’t set up your tree near a heating source (i.e. electric baseboard, furnace air vent, woodstove, fireplace).
• Don’t keep a real tree up for too long. If you want to have your Christmas tree up for a month use an artificial tree.
• Don’t put off arranging proper insurance coverage until after the Christmas season.

Q: It would be more convenient if I could get all of my financial services looked after from one office. What can Etherington Insurance do to help me?

A: Etherington Insurance is your one-stop insurance and financial service specialists.

Insurance: We represent over 10 major insurance markets to help look after all your insurance needs and provide financial security. We provide competitive coverages in all areas of insurance – disability, life, auto, farm, property, business.

Financial Services: We employ specialist in all financial service fields. We would be pleased to review your Mutual Fund, GIC, and mortgage requirements. Trained professionals are available to help develop an estate, financial and retirement plan with you.

Q: I keep hearing about insurance fraud. Is it a problem?

A: Can you afford to pay for someone else’s crime? It is estimated that 15 cents our of every dollar you pay for insurance goes to cover fraudulent insurance claims. These can range from “padding a claim” to help cover the deductible to outright staged accidents to arson. Vehicle pre-insurance inspections, special investigations by insurance companies and supporting Crime Stoppers are initiatives that are being implemented to help fight insurance fraud.

Q: Why would I use a local insurance broker like Etherington Insurance? Can’t I get better rates and selection from an agent in Toronto?

A: Etherington Insurance Brokers Ltd. has been providing quality insurance products in Georgina for over 27 years. We have two offices to better serve you. By representing over ten major insurance companies we can select a policy that best suits your specific needs, offering you more choice than many agents or brokers in Toronto. It should be noted that an insurance company’s rates are the same for all their brokers and are based on the specific insurance risk, not who sells the policy. A Broker cannot change the published rates. Only approved discounts can be applied to reduce the premium that you pay.

Q: Why should I get insurance with Etherington Insurance? Can’t I get it cheaper from one of those 800 number companies?

A: When you buy insurance through a Direct Writer you get one quotation from one insurance company. Period. No comparison in price; no comparison in coverage. You may save a little premium, but please remember, you get what you pay for. Nothing is free. The cost to you could be the frustration of never getting to deal with the same

representative when you call the insurance company or it could be as serious as a lack of proper insurance coverage when a claim occurs. The Direct Writer will tend to provide you with a quotation for the insurance coverage that you ask for; as insurance brokers we will first work to determine the coverage that best suit your needs and then search the insurance companies available to us for the best price.

Call us today for a free, no obligation quote. Our two local offices are staffed with professional, knowledgeable, local residents. Etherington Insurance Brokers Ltd. represent more than 10 major insurance companies. This gives us plenty of choice to properly insure your interests, whether it be your home, auto, farm or business. We work for you finding the best coverage at the best value for your specific needs.

Q: It costs so much to have my child added to my automobile insurance policy. Why should I bother?

A: Your child should be added to your automobile insurance policy as soon as they receive their G1 licence. This will help your child establish an insurance history that can help them get better insurance rates when they get their first car. It can also protect you from financial ruin. An insurance company may be well within their rights to deny a claim if your child is involved in an accident and you have not notified the company that they were an occasional driver in the household.

Q: I have heard of something called an umbrella policy. What is it and does Etherington Insurance sell these?

A: Umbrella Liability Policies are designed to extend the liability coverage of an individual or business. Base policies are still purchased by the client to cover their needs (i.e. home, auto, snowmobile, boat insurance). A secondary policy, called an Umbrella Liability Policy can then be purchased to increase the liability coverage to a greater limit. A client purchases their home, auto, and snowmobile insurance policies. All of these base policies will have a liability insurance limit of $1,000,000. They could then choose to purchase a $5,000,000 Umbrella Liability Policy. Should a claim arise that exceeds the policy liability limits on one of the base policies, the Umbrella Liability policy will “pick up the difference, up to the policy limits. For example, you are involved in a vehicle accident and are then sued for $3,000,000. If this settlement was upheld in court the automobile insurance policy would pay up to the policy limits, that is $1,000,000. Without an Umbrella Liability Policy the automobile owner would be responsible for satisfying the remaining $2,000,000 of the settlement. If an Umbrella Liability policy is available it would look after the additional $2,000,000 of the settlement.