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You buy insurance for peace of mind. Auto, home, personal belongings: naturally, you expect to be protected when something goes wrong.
But an insurance policy isn’t universal protection against every unexpected event. Some situations require additional coverage, may be subject to specific limits, or may simply be excluded from your policy.
And unfortunately, it’s often after a loss that people discover the difference.
Here are 7 situations that may be worth taking a closer look at.
1. Water gets into your basement
A heavy rainstorm hits your neighbourhood and, a few hours later, you discover water in your basement. Home insurance means water damage is covered, right? Not necessarily.
Where the water comes from is a key factor. Sewer backup, water entering through the foundation, surface water accumulation, or the overflow of a body of water may not all be treated the same way.
Certain types of water damage coverage may need to be added to your policy and can be subject to specific conditions or limits.
Worth checking: What types of water damage are actually covered by your policy?
2. Your phone or laptop is stolen from your car
You leave your laptop in the car and someone breaks a window and steals it.
Since the theft occurred inside the vehicle, you might assume your auto insurance will reimburse you for the computer. However, personal belongings kept inside a vehicle are generally covered by home insurance, while damage to the vehicle itself falls under auto insurance, depending on the coverage you purchased.
Two types of damage, two different types of coverage.
That’s also why it’s always best to avoid leaving valuables visible inside a vehicle.
3. Your basement floods because of a sewer backup
A sewer backup is one of those situations where homeowners may discover that their coverage isn’t as extensive as they thought.
Depending on your policy, sewer backup coverage may require a specific endorsement and may include a maximum amount of compensation.
And when you add up flooring, walls, furniture, electronics and the work required to restore the basement, the bill can rise very quickly.
Worth checking: Are you covered for sewer backups and, more importantly, for how much?
4. You renovate your home
A new kitchen, a completely finished basement, an additional bathroom, an extension… You invest significantly in your property but forget to tell your insurer.
The problem? Your insurance policy is based in part on the characteristics and reconstruction cost of your home.
Major renovations can increase its reconstruction value or change certain aspects of the risk. The nature of the work, particularly during a major renovation project, can also affect your coverage.
Before undertaking significant renovations, speak with your broker. You can then determine whether your coverage needs to be adjusted before, during or after the work.
5. You use your personal vehicle for work
Using your vehicle to commute to and from work is nothing unusual.
But if you begin using it regularly as part of your job or business activities — visiting clients, making deliveries or travelling frequently between different work locations — that may be a different situation.
How you use your vehicle is one of the factors considered by your insurer.
If your driving habits change, let your broker know. They can determine whether your current policy still reflects how your vehicle is actually being used.
6. You occasionally rent out your house or condo
You’re going away for a few weeks and decide to rent your home to travellers through a short-term rental platform.
An easy way to earn a little extra income while you’re away? Perhaps. But from an insurance standpoint, this change in how your property is being used deserves a closer look.
A personal home insurance policy isn’t necessarily designed to cover all short-term rental activities. And even if a rental platform provides some protection, it doesn’t automatically replace your own insurance coverage.
Before welcoming guests into your home, contact your insurer or broker to make sure you have the appropriate coverage.
7. Your pool, spa or new e-bike isn’t included in your coverage
Over the years, we buy new things and improve our homes: a pool, spa, jewellery, computer equipment, an e-bike, a collection, sports equipment…
But your home insurance doesn’t update itself automatically.
Some belongings may be subject to specific compensation limits, while certain installations can change the risk associated with your property.
An e-bike worth several thousand dollars, for example, is worth checking with your broker, just as installing a pool or spa should be reported to your insurer.
Your insurance should evolve with your life
The real trap isn’t necessarily having too little coverage. It’s believing you have coverage without ever checking.
A policy purchased five years ago may have been perfectly suited to your situation at the time. But since then, you may have renovated your home, purchased new belongings, changed your driving habits or installed a pool.
That’s why periodically reviewing your coverage can make all the difference.
The brokers at Assurances Groupe Vézina can review your auto and home insurance with you, answer your questions and make sure your coverage still reflects your current needs.
Because when it comes to insurance, it’s always better to know what’s covered before you need to make a claim.
