Types of Home Insurance:

Homeowner, tenant, and condominium unit owner policies, cover your building (when applicable) and it's contents for direct loss or damage caused by insured perils. * Insured perils may be stated individually (named perils) or merely described as all risks.
* with exclusions

There are also coverages included to cover additional living expenses, should your home be unfit to live in due to an insured peril.

Personal liability coverage is also included, to cover your responsibilities arising from the ownership of your property and the actions of you and your family.

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Although policy wordings and coverages can vary greatly between insurance companies, there are 3 primary types of personal lines policies available in today's insurance market:

Comprehensive Form: A comprehensive form, covers both buildings and contents on an all risks form. This policy is generally considered to be the "Cadillac" of homeowner policies, and generally, is the most expensive.
Broad Form: A broad form, includes all risks coverage on the building, and reduces coverage on contents to named perils. This is a policy chosen by those that feel the comprehensive form is too expensive, but still wish to include broad coverages on the "big ticket" item, the dwelling.
Basic/Named Perils: A basic form (or Named Perils form) includes named perils coverage on both the dwelling and contents. This is the least expensive form, but should be chosen carefully, as you are assuming more of the financial risk of home ownership.

For those people that have had problems in the past with insurance claims, or have physical deficiencies with their properties, there is an option referred to as special risk, or "bare bones, no frills" coverage.

Generally, because of the extra risk included with these properties, premiums and deductibles tend to be very high. If physical problems with your home are the only reason it does not meet insurers' standards, you may save money in the long run by correcting deficiencies, to qualify for better coverage and terms.

Home Evaluations:

At Saxbee we use the software package known as RCT EvaluRater from Marshall & Swift/Boeckh.  This product supports insurance-to-value initiatives with a component-based method, which values a home the way it was built, from the ground up. It uses localized building codes, structural considerations and local labour and material costs to calculate the replacement costs unique to each home, and does not simply apply a “Canadianizing” formula to U.S. data. The component-based system minimizes rating subjectivity, eliminates guessing and provides more credible, defendable valuations. The system profiles external and internal building characteristics and produces a report for each structure, which brokers can review with their clients.

Glossary of Terms:

Direct Loss:
Direct loss occurs when your property or goods have been damaged or lost. The term does not include other losses or expenses incurred as a result of the loss (ie: You have a break-in where all your camera equipment is stolen the night before you are to go on holidays, and you have to pay to rent equipment).

Named Perils:
Named perils refers to a specified list of possible types of loss that can occur. These will be the only perils that the policy will respond to, in the event of a loss. Standard perils included are: Vehicle/Aircraft impact, Limited electrical damage, Explosion, Falling Objects, Fire, Lightning, Riot, Limited Smoke damage, Theft, Transportation losses, Vandalism, Limited water damage & Wind & Hail. Consult the policy wording for exact coverages applicable.

All Risks:
All risks, in an insurance policy, refers to all risks of possible loss, except those that are specifically excluded by the policy. Normally, a policy excludes perils and property that you normally would not, or cannot insure under a personal lines policy (ie: property: business property, illegally acquired property, animals. Perils: Criminal acts, bylaws, war, nuclear incident, wear & tear, etc.). Consult the policy wording for exact exclusions applicable.

Additional Living Expenses:
Additional living expense coverage, is included on most personal lines policies, and allocates a specific amount of money, which can be used by you if your home is unfit to live in due to a loss caused by an insured peril. This does not cover ALL your expenses, only those which are over and above your normal cost of living.

Insured Perils:
Insured perils, are causes of loss or damage, of which the cost to replace or repair would be included under the policy.

Personal Liability:
Personal liability is included on most personal lines policies, and applies to damage or injury you unintentionally inflict on other people or their property, at your home, or anywhere in the world. Legal defense costs are paid by the Insurer in the event of a loss, however the Insurer gets to choose the lawyer. 		Personal Lines:
Personal lines refers to a class of insurance business, that insures individuals and families. Homeowners, tenants, condominium unit-owners, private passenger automobile insurance, are all examples of personal lines policies.

Special Risk:
Special risks, refers to a class of insurance business, that has inherent problems with the level of risk. Homeowner's, that have had more than 3 claims are often referred to a "special risk" insurer, as most regular insurers will not write the policy as new business. The majority of these policies, have restricted coverage (ie: no theft cover), higher deductibles, and are more expensive than standard policies.

Tenant Package Policy:
A tenant package policy, includes coverage for the tenant's personal possessions, additional living expenses caused by an insured loss to the property, and personal liability of the tenant. Landlords have few legal obligations to compensate tenants for loss or damage to their contents, however tenants do have a responsibility for damage they may cause (or be responsible for) to any part of the building in which they live.

Condominium Unit Owner Policy:
A condominium unit owner, has different responsibilities than those of a homeowner, or tenant. Condo owners experience some of the best aspects of home ownership. As a unit owner, you have title to your own unit, as well as a share in common areas, such as the lobby, swimming pool, parking garage etc. As a matter of fact, the entire building is common except the interior paint, wallpaper and floor coverings in your unit. You are a shareholder in the condominium corporation (or Strata Plan), and you pay fees to rent access to the common areas. Other than the obvious contents coverage requirement, you must also insure any improvements you make to your unit. Some policies also include supplemental coverage for your unit, so you will be protected should the corporations coverage not fully cover a loss to your unit. Loss assessment coverage is an important feature of condominium coverage, as you share in the responsibility for damage or injury to other people, as well as direct loss damage that must be paid due to a "special assessment" by your condominium council.


An Independent Insurance Broker Covers You Best

SAXBEE INSURANCE AGENCIES LTD.
Phone: 604-853-5951  Fax: 604-857-1549
Vancouver Toll Free: 604-857-1373

#201, 32641 South Fraser Way
Abbotsford, BC Canada  V2T-IX9
Email: info@saxbee.com