Insurance advice for homeowners

Amanda Dean, the vicepresident of the Insurance Bureau of Canada, Atlantic branch has some input on things people should be aware of when insuring their property.

“With home insurance, there is replacement value and actual cash value policies. Replacement value covers everything, while actual cash value will cover a certain amount; so what the dwelling is worth,” she explained.

Depending on the age, condition, location of the home, insurers will say they can’t offer replacement cost but they can offer actual cash value policy.

This is something the insured party should know when they take out a policy from the beginning, she said.

Every insurance company is different with these policies.

“There is no one set of rules for a home insurance policy. It depends on the company you are with.”

However, there is a procedure under the insurance act to help resolve disputes.

“When you get into a claim for home insurance, there is typically an appraisal done by the insurer to determine damage that was caused to the dwelling.

“If a client doesn’t agree with that amount, the insurer gets an appraiser, the client gets an appraiser and there is an umpire to help.”

When a change is made to a home, Dean says customers should inform their insurers or it won’t be covered under an actual cash policy.

“If you build something onto your home, which increases the value, it won’t be covered if your insurance company doesn’t know about it.

This includes upgrades including more expensive fixtures.”

“With home insurance, there is replacement value and actual cash value policies. Replacement value covers everything, while actual cash value will cover a certain amount; so what the dwelling is worth.”

Amanda Dean, the vice-president of the Insurance Bureau of Canada, Atlantic branch