Frequently Asked Questions About Home Insurance Claims
- Is this claim covered under my policy?
- What are my options if I need a contractor?
- I’ve just discovered a break-in/theft at my home. What do I need to do?
- What does “Replacement cost” mean?
- Should I make a claim for a minor loss?
- A ring worth $10,000 that was stolen from my home. My adjuster told me that he can only pay me $6,000. Why?
1. Is this claim covered under my policy?
Don’t wait until disaster strikes before finding out what your policy covers. Take time to review your policy carefully, because it describes in detail your coverages and any exclusion that applies to your policy. Unfortunately, not everything is covered in a policy, so some losses may be excluded under your particular policy. Our property insurance agents can confirm your coverage.
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2. What are my options if I need a contractor?
Ultimately, the choice of contractor is yours. However, we do have a list of preferred contractors who are fully certified to handle all types of covered losses, including those caused by fire, water and wind. We’re available to take your call 24/7, since timely action minimises the inconvenience for you and accelerates the restoration process.
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3. I’ve just discovered a break-in/theft at my home. What do I need to do?
First, remain calm. Don’t touch anything and contact the police to fill out a report. All thefts must be reported to the police. If items have been stolen, try to make a brief initial list to provide to the officer; your list can be updated if additional items/damages are discovered. Contact us as soon as you can. Our agents will take the details from you, and will arrange for repairs to keep your home safe, if needed.
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4. What does “Replacement cost” mean?
Generally, “Replacement cost” is equal to the lesser amount, at the time of loss, between repairing the property with material of like kind and/or quality, and new property of like kind and/or quality, and usefulness (without deduction for depreciation). You must replace the lost or damaged item in order to benefit from replacement cost.
If you do not plan to replace the property, your settlement may be on the basis of Actual Cash Value. (If your claim is settled on the basis of Actual Cash Value and you later decide to replace the item, you can make an additional claim for the difference between the Actual Cash Value and the Replacement cost.) For more information or a complete definition of “Replacement cost” and what it entails, please refer to your policy wording.
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5. Should I make a claim for a minor loss?
The choice to make a claim is a very personal one. You may want to consider the cost of the loss or damage, in comparison with your deductible. If the amount is minor, you may wish to refrain from making a claim, especially if it means you may lose any claims-free discounts that you have.
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6. A ring worth $10,000 was stolen from my home. My adjuster told me that he can only pay me $6,000. Why?
Most policies have limitations for theft on jewellery, watches and furs . To best protect your valuables, we suggest insuring them under a Personal Articles Floater, also called a “rider”. Not only would you not have to pay a deductible for this coverage in the event of a loss, but you would also be protected for Replacement cost, up to the amount shown on your policy.
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