Cancel your insurance. Don't just let it run out.

2/14/2023

In the past 5 years, have you ever been cancelled, declined, or refused coverage?"

Clients that have been cancelled for non payment may find themselves PAYING A LOT MORE for coverage at renewal.

Here's a few reasons to make insurance payments a priority.

Avoid getting picked last for kickball.

Insurance companies choose pricing on policies to bring them customers they WANT to insure.

Paying your bill, and being financially reasonable is a big step towards keeping you on the WANTED list.

Pricing can be complicated and insurers tweak their offerings all the time to attract MORE of the risks they want, and LESS of the risks they don't want.

STAY ON THE WANTED LIST!

via GIPHY

More Money.

Without question, if you've been cancelled for non-payment during a policy term, your costs are going up at renewal.

Some companies surcharge as much as 25% more than last year for one of these slip-ups.

Fortunately Auto Insurance is regulated by the province, and if you pay the missing amount before your cancellation date there's a requirement to reinstate your coverage.

Once renewal rolls around though, that's when you'll see the additional costs.

Property on the other hand has NO REGULATION which means insurance companies don't HAVE to do anything... and the market is trending towards insurers NOT REINSTATING HOME POLICIES that have been cancelled for non-payment.

This leads to shopping for coverage elsewhere right away, and your options are often less attractive.

When it Rains, it Pours.

If you're able to get your insurer to reinstate your HOME policy, there's a good chance they may not offer monthly payment anymore.

PAYMENT IN FULL?!

Sadly yes.

If you decide to go elsewhere "since this is ridiculous" you're likely to have an even higher premium elsewhere since you've been removed from the WANTED list.

Understand What You Signed Up For.

An insurance policy is a 12 month agreement.

Tons of people end up getting cancelled for non-payment simply because they didn't know it they had to cancel it.

Some people will put a 'stop pay' on their payments rather JUST CALLING them to cancel it.

You accidentally push your future self off an insurance rating cliff.

The takeaway here is:

If you’re living paycheck to paycheck and you sometimes have to ask: "WHICH BILL IS GETTING PAID THIS MONTH?"

You can save FUTURE YOU some money by putting your insurance bill near the top of the pile.

- MD

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Property Claims 101

3/20/2019

1 Comment

Property Claims are on the rise.
Learn what to do when they happen.

This past weekend I had both a friend and a client encountering their first property claims. Water pouring into their basements along with the terrible feeling of not knowing what to do about it.

With more young people buying homes in Nova Scotia....and our weather events getting more extreme, I suspect most policyholders could use some info on what to do with a property claim.

Every insurance claim is unique in its own way, but I can still pull out some BEST PRACTICES to give the people some easy takeaways and maybe some insights to claims they hadn't considered.

Some Advice from a former Claims Adjuster.

1. IT'S YOUR PROPERTY SO LIMIT THE DAMAGES.

If water was pouring into your home, and you DIDN'T have insurance what would you do first?

Probably try to stop the problem right? Yes. Try to stop things from getting worse.

Turn off the water if it's a broken pipe spraying in your living room.
Cover the pot that just burst into flames. (The number of people who make fries on their stove is ASTONISHING to me.) Lift things off the floor that water is moving towards. Use towels/shop vacs...do something to try and stop damages from happening.

These sound obvious, but when people are in a panicked situation sometimes common sense goes out the window.

Buried in the fine print of your policy are 'STATUTORY CONDITIONS'.
These layout requirements for an INSURED (that's you) to at least try and 'mitigate a loss'. That's a fancy way of saying, preventing more damage from happening if you can.

Bottom line here is you can't notice your flooded basement and say
"WOW. Good thing I bought insurance! I'll be at my mom's if you need me."

2. IF IT'S STORM RELATED, YOU'RE ONE OF MANY. 

The worst part about claims is that they often come in bunches. If it's a WINDSTORM, or RAIN EVENT, there's a good chance tons of other people are in the same situation. This means the contractors and adjusters servicing the area are busier than you can even imagine.

In the very moment you NEED one these companies to help you....they are balancing a list of 20 more visits that day, and maybe 200 more in line behind that. Most of the adjusters and Project Managers still provide great service, but often it may not be what a first time claimant is hoping for.

If you call in a claim to your broker, or insurer on a weekend....usually the first person to contact you is from a contractor, or restoration company dispatched by that company. Their priority is to stop the bleeding so to speak. Often they aren't in the position to tell you if there is coverage right away , but they CAN take some steps to temporarily repair damages. Things like patching a roof/or repairing the broken pipe). If you're not handy, this service is a lifesaver regardless of coverage.

3. EXPECT IT TO TAKE A WHILE.

Getting you back to where you were before the incident happened can take some time, so temper your expectations on a quick fix. Claims drag on, and can wear you down if you've not been through them before.

EXAMPLE: A flooded (finished) basement.

It will take a week or more to get it dried out.
Then a week or more to agree on the scope of the damages.
Then who knows how long to collect repair estimates and decide on a contractor.
Then the repairs to be completed.
Replacing, or settling the damaged contents.

AT BEST it's a few weeks.
On average a couple months.
AT WORST, well let's just hope it's not the worst.

4. DON'T GO AT IT ALONE.

Claims are a whole subset of insurance industry knowledge. It's not something you'll want to just Google when you need it. People who adjust claims, and work in claims departments spend their entire lives immersed in them. They still come across new circumstances every day so believe me when I say two hours on Wikipedia won't have you operating on their level.

I'm always promoting
'the benefits of brokers'
but CLAIMS is where this
should be paying off.

You should be able to email, text or call them, and know they'll make time to guide you through the process.

They should be able provide insight on what to expect, follow up with vendors/adjusters when necessary, and give you reassurance that the decisions you're making are in your best interest. It's like taking your own car sales manager with you to buy a new car.

Direct insurance companies are sometimes the lowest price but it's just you and them when it comes to making a claim. I'd be interested to know what the average policy holder leaves on the table or forgets to add to their claim because they had no help through it.

Get a broker BEFORE you have a loss. Once you've made a claim, you're stuck there for awhile until other companies are willing to consider you.

- MD

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Ice Damming

2/26/2019

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An extreme example

What is it?

An ice dam is a buildup of ice that holds melting snow on the roof, stopping it from running into the eavestroughs and away from the building.

This can cause your roof and ceilings to leak damaging your home’s interior walls and insulation,among other issues.

Check out the video below on how it happens.

If you notice any water spots, you should try and get up in the attic to confirm the source of the leak. If you don't feel comfortable doing it, find someone who is.

Damages can usually be minimized if actions are taken quickly, and could save you from needing to make a claim on what could be a minor repair.

Discuss the situation with a knowledgeable broker and decide what next steps are really needed.

A Claim for this won't get you a new roof.

Ice Damming repairs are usually limited to:

1. Drying out the wet areas.
2. Repainting the ceiling/walls that were affected.

It's been my experience that Ice Damming SELDOM results any need for exterior repairs. The roof itself isn't compromised and when it melts off you're back to normal.

In some cases the actual damages are limited to drying the wet insulation/drywall and a water ring when it dries. Obviously it's not always this easy, but sometimes it is.

'Ice and Watershield'

'Ice and Watershield' is also something that comes into play on a claim of this nature. It's a waterproof barrier used on the edges and in the valleys of a roof that was designed to help prevent water from coming through it.

Sometimes a building owner will discover their structure never had 'Ice and Watershield' at all, leaving it more susceptible to this kind of damage.

While this shouldn't affect their ability to make a claim, it isn't something the insurer will pay to have installed if you didn't have it before.

Get Some Advice

There are too many types of Home Insurance coverage in Nova Scotia to list.

Some SPECIFICALLY EXCLUDE "damages from Ice Damming" and some policies may only pay a percentage of the cost of replacement shingles based on how old your current ones are.

Knowing what's covered, or better yet having someone else who knows that can bring some peace of mind.

Get yourself some real advice about what you HAVE and do it BEFORE you have an issue.

Feel better about what you're paying for.

- MD

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<<Previous

THE FINE PRINT.

Cancel your insurance. Don't just let it run out.

Property Claims 101

Property Claims are on the rise.
Learn what to do when they happen.

Some Advice from a former Claims Adjuster.

Ice Damming

What is it?

A Claim for this won't get you a new roof.

'Ice and Watershield'

Get Some Advice

About the author

Categories

Archives

THE FINE PRINT.

Cancel your insurance. Don't just let it run out.

Property Claims 101

Property Claims are on the rise.Learn what to do when they happen.

Some Advice from a former Claims Adjuster.

Ice Damming

What is it?

A Claim for this won't get you a new roof.

'Ice and Watershield'

Get Some Advice

About the author

Categories

Archives

Property Claims are on the rise.
Learn what to do when they happen.