When it comes to insurance, you want to make sure that you’re getting what you need. Whether it’s protecting your home, and everything in it, or having the right car insurance, you want to enjoy the peace of mind that comes with having a safety net in place.
A financial advisor will help ensure that your insurance policies are the right fit for you and your family. To learn more about the ins and outs of home and auto insurance, we spoke with Jeff Viotto of J. Viotto and Company, The Co-operators in Sault Ste. Marie.
Home and property insurance
If something happens to your house, your insurance company will pay to repair or replace any damage that is covered under your policy. They’ll also cover any damaged or destroyed property, either within the usual policy limits or through additional coverage that you can purchase.
This kind of insurance gives you protection against fire, lightning and other potential incidents that could require you to need to repair or replace your home and belongings.
Liability coverage protects you from financial responsibility for unintentional injury or damage caused to other people or their property, for example, if a visitor is injured when they slip and fall on your icy driveway.
Did you know that coverage actually extends beyond your home and belongings? Your home insurance plan may even cover unauthorized debit or credit card use and identity fraud recovery expenses. If someone uses your debit card without your authorization and your bank doesn’t cover it, you’ll be protected. If someone tries to steal your identity, your policy will pay up to $10,000 to help you get your life back on track.
You can also purchase optional insurance to cover any additional items.
Home insurance for every type of dwelling
If you live in a condominium, you should definitely have condominium insurance in place. This covers any damage to common areas and improvements you make to your unit, and it includes many of the advantages commonly found in a standard home insurance policy. If you’re renting, be sure to arrange tenant insurance.
There are also insurance policies for seasonal homes such as a cottage by the lake or a mobile home in a campground.
Get started by securing your own online quote. Once you have insurance in place, you can make a claim quickly and easily.
How are home insurance premiums determined?
The Co-operators use your credit score to help determine home insurance premiums, as a credit score generally reflects a client’s level of responsibility and behaviour when managing their finances. Clients with good credit scores benefit by receiving the most competitive premiums, and most Canadians have a “fair” to “good” credit score.
There are of course other, more traditional rating factors that also come into play, such as your property claims history, the age, size and features of your home, the materials used to build it, its geographical location and the estimated cost of reconstruction. These all factor into determining the level of risk and the appropriate premium.
Other rating factors could include whether your neighbourhood is prone to sewer backup, the crime rate in your area, the value of your personal belongings, how close you live to a fire station and fire hydrant, and the type of coverage and deductible you choose.
Auto insurance
Insurance is required by law if you own a vehicle of any kind. Plans can vary widely, depending on the type of vehicle you have and how you use it, and it’s important to get the car insurance that’s right for you.
In Ontario, auto insurance is mandatory and is available from private insurance companies. No-fault auto insurance means you work directly with your own insurance company, even if the other driver was responsible for the accident.
Every driver must have third-party liability, accident benefits, direct compensation: property damage and uninsured auto coverage. Optional coverage includes increased accident benefits, collision, specified perils, comprehensive and all perils.
How are car insurance rates determined?
Rates for all types of insurance are based on the same principle: the higher the risk and the cost to settle claims, the higher the premium. How your car insurance rate is calculated depends on several factors.
The type of car you drive plays a role, as some cars are more expensive to repair or are stolen more often than others. It can help to consider insurance costs when buying a vehicle; choose one with a lower theft rate and good safety and security features.
Your premiums also take into account how much and where you drive: the more you use your car, the higher your collision risk. City drivers or regular commuters are more likely to have a collision due to a higher volume of vehicles on the road.
Your driving and claims records are also factors. If you have had lots of accidents, speeding tickets or insurance claims on your record, you are considered higher risk. If you have one or more convictions, that may increase your premium. Drive carefully, obey the rules of the road and build a good driving history.
Your age and driving experience will affect your premiums as well. Younger drivers between the ages of 16 and 25 tend to have more frequent and more serious collisions. If you are an experienced driver with a clean record, you’ll often pay lower premiums.
Consider bundling
Keep in mind that if you bundle your home and auto insurance, you can save up to 15%. This is a great deal and makes sense for clients who happen to be in the market for both kinds of coverage.
Again, it’s often best to start by speaking with a Financial Advisor. You can also get an insurance quote online.
For more information, visit The Co-operators or call 705-945-8844 to speak with Jeff Viotto, Joanne O’Shea, Katrina D’Addario, Jordan Forbes or Justin Montanini.