by Dianne Nice | The Globe & Mail | October 25, 2010
Five years ago, as a major rain storm pounded Toronto, I found myself in my flooded family room, toys floating by in ankle-high water, wondering whether my insurance policy would cover the damage.
Many neighbours were in the same boat, with water-stained bundles of carpeting placed curbside on every street. All told, the Insurance Bureau of Canada estimated more than $400-million was paid out to property owners to cover flood-damaged basements from that particular storm.
Like many home owners, I hadn’t thought much about my insurance coverage until I was faced with a claim. A recent TD Insurance poll reveals 23 per cent of Canadians are unsure or have no idea what’s covered in their insurance policies. And of those who do understand their policies, most do not bother to take the proper steps to take full advantage of their coverage, such as keeping a detailed inventory of their valuables and updating their policies when they acquire something of major value.
“Not updating your insurance policies is like not checking the weather before you get dressed and leave the house – you risk finding yourself in an unfortunate situation you could have avoided,” says Henry Blumenthal, vice-president and chief underwriter at TD Insurance.
Of the 1,500 Canadians polled, 53 per cent had made a claim on their insurance before, and of them, 42 per cent said they were surprised by something on their insurance policy.
Last year, 37 per cent of TD’s home insurance claims were the result of water damage, 17 per cent were the result of wind and hail, 14 per cent were due to theft and 2 per cent were due to fire.
Mr. Blumenthal offers a few tips for ensuring your insurance has you covered: To read them, click here
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