FAQ: Home Owner & Tenant Insurance
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CHOOSING INSURANCE
Q. We're going to be building a house. How do I insure it while it's under construction?
A. The best way is to purchase a “Course of Construction” policy when you start to build. You should be sure to tell us that the house is currently under construction.
Q. I own a home that no one is currently living in. Will it be difficult to insure?
A. It certainly could be. Several factors will influence whether or not you can get insurance for your vacant home. Is the house currently for sale? How long do you plan to leave it vacant? Does someone check on it regularly? Is the house secluded from view? Call us and we will work with you to get the coverage you need for your vacant properties.
Q. Do home insurance policies vary from one insurance company to another?
A. Very much so, although there are broad similarities. There are generally three types of policies, known in the industry as the Standard (or Basic), the Broad, and the Comprehensive.
Standard: The standard policy provides protection against a number of "named perils" that might cause damage to the dwelling and its contents. "Named perils" could include such things as fire, lightning, windstorm, hail, theft, and specific types of water damage.
Broad: The broad policy expands the “named perils” coverage on a dwelling to "all risks" coverage, but leaves the coverage for your contents on a “named perils” basis. ("All risks" coverage provides protection from anything that can cause you loss or damage, unless the policy specifically excludes that cause of damage. Typical exclusions on an “all risks” policy could include faulty workmanship—e.g. your roof shingling was not properly installed and the shingles are now causing water to leak into your home. Another example is wear and tear—even “all risks” policies would not provide protection if some component of your home or contents simply wears out.)
Comprehensive: The comprehensive policy provides “all risks” coverage on both the dwelling AND the contents. This is the most commonly purchased policy.
Q. I understand the water damage coverage varies very much from one policy to another. What should I be concerned about?
A. You really need to have us explain the various options available to you. At the low end of the scale, water damage caused by water overflow from the plumbing system, water from burst pipes, and also frozen pipes could be covered, but not damage caused by continuous seepage, sewer backup, etc. Therefore, it is important that you understand precisely what your policy covers—and what is excluded.
Q. We are planning to do renovations on our home. Should we call you before we begin?
A. Most insurance companies require that you notify them (via your broker), and in particular if the renovations will be over a certain dollar value. If you plan to hire contractors to do some of the work, it is important to make sure that they carry general liability insurance, as well as workers compensation insurance for their employees.
Q. Can I make monthly payments on my home insurance?
A. Yes. At Park Insurance, we offer that service to our customers. It’s easy and convenient. Please contact us for the details.
Q. How can I determine the value of my artwork, antiques, and record collection?
A. First, it’s a good idea to take photos of these items. (Actually, it’s a good idea to take pictures or a video of all your house contents). Second, write up the details for these items that a photograph may not capture, such as the name of the artist, dimensions or unique features about the item, etc. Finally, get an appraiser to assess the value of your items and give you a written copy of the appraisal. Keep copies of this documentation in a safe place, such as a safety deposit box.
Q. I operate a business from my home, is this automatically covered on my policy?
A. Most home insurance policies provide limited coverage for business property (computers, printers, etc.); business operations and liability are excluded from these policies. Contact Us for details on cost effective coverage for your home business.
Q. I have rental properties and need insurance. Do you provide insurance for this?
Yes, we do. Please contact our Customer Service Department.
Q. I'm a tenant in a high-rise apartment building and have very little personal property; do I really need tenant insurance?
A. Although you may not be interested in getting coverage for the contents of your apartment, a tenant policy also provides protection against damage you might cause to the structure of your apartment or the structure of other apartments or your neighbours’ personal property. For example, if you have a kitchen fire that gets out of control, or you forget to turn off the water in your tub and it causes damage to your apartment or other people’s property, then you could be held legally reponsible to pay for these damages.
Or, imagine one of your neighbours causes a fire and now you have to move out for an extended period of time while repairs are being made to the building. With additional living expense insurance, these continuous expenses are covered. Therefore, tenant insurance provides excellent value and peace of mind—and in some cases for as little as $1 per day. For more information on why you should have tenant insurance, call us for more details.
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