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Coverage of Water Damage

On the beginning, there is one kind of water damage in the insurance policy. It is a sewer backup. Now there is two more new coverage about water.

Here is a sample from Optimumwest insurance company.

 

Sewer Backup

Water (Excluding flood water) entering the home from:

  • Sewer or sump system
  • Septic tank
  • Outside drain
  • Eavestroughs or downspouts

Overland Water

  • Flood caused by overflow of body of freshwater
  • Surface water buildup caused by weather including heavy rainstorm

Ground Water

  • Ground water or rising of water table

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Disaster Financial Assistance

The insurance industry and government have a long tradition of working together in a social contract to provide relatively seamless compensation to citizens who suffer devastating losses of property. The insurance industry takes most of the risks (e.g., fire, theft, windstorm). Government mitigates others through public policies such as land-use laws, regulations, and zoning that prohibit people from building in high-hazard areas such as flood plains. For the thin band of situations that fall between insured perils and prohibited activities, the provincial government provides a limited amount of compensation through the Disaster Financial Assistance (DFA) program. When its costs exceed a predetermined threshold per capita of the affected population, the provincial government may request financial assistance from the federal Disaster Financial Assistance Arrangements program. These requests must be made by the province within six months of the end of the event.

BC province has a program, Disaster Financial Assistance (DFA) program. The provincial government may declare the event eligible for DFA, following a disaster. Once declared, the DFA program may compensate individuals for essential uninsurable losses.

What are the essential uninsurable losses?

Look, the essential uninsurable losses. They are essential to your home, livelihood or community service.

It does not pay for:

  • Loss or damage for which you could have obtained insurance
  • Recreational or seasonal residences
  • Luxury goods
  • Land that has been lost through erosion
  • Landscaping

How much help is available?

In general:

  • If your claim is accepted, DFA will compensate you for 80% of the total eligible damage that exceeds $1,000 to a maximum claim of $30,000.
  • Your claim can not exceed the cost to replace or repair essential items and property to their immediate pre-disaster condition.

Do you eligible for DFA?

You are eligible for DFA assistance if items essential to your principal residence, business, farm or charitable organization have been damaged in an eligible disaster, and if you are a:

  • Homeowner
  • Residential tenant
  • Small business
  • Farm owner
  • Charitable organization
  • Local government

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Legal Expenses Insurance

In Canada, an overlooked class of insurance is legal expenses insurance (or legal protection insurance in some countries), which can provide coverage for legal costs associated with disputes and issues not covered by the typical and common commercial policies. Legal expenses insurance is a natural complement to the business insurance coverage your clients now have.

Legal costs is very expensive in Canada. Some business can not afford it.

legal

What’s Covered in Legal Expenses Insurance Policy?

Coverage is afforded to the business and its officers, directors, managers, employees and if necessary, its volunteers.

The usual perils or risks a legal expenses insurance policy provides coverage for include claims that allege breach of contract, defence of criminal and qussi-criminal charges, employment disputes, business licence protection, property protection and tax audits.

  1. Contract Claims
  2. Employment Disputes
  3. Legal Defence
  4. Business Licenses
  5. Property Protection
  6. Tax Protection
  7. Legal Advice

 

The typical business insurance package offers your clients a defence to claims brought against it by third parties claiming damages arising from negligence or property damage. However, what they do not offer is coverage for matters that arise from day to day business operations such as claims for breach of contract. In addition, unlike typical liability policies that only respond to claims made against your clients, a legal expenses insurance policy can also cover the cost of claims that may be brought by your clients. A legal expenses insurance policy will enable your clients to obtain a remedy through the courts.

A legal expenses insurance policy can fill in the gaps that your business client’s typical liability insurance program unintentionally creates, issues that the typical liability insurance policies do not cover. Liability insurance does not provide plaintiff coverage and typical business insurance programs do not provide coverage for legal disputes unrelated to claims for negligence but that arise in the course of business. These are the gaps and the costs associated with these issues are the areas and costs that legal expenses insurance policies cover.

 

 

Are you covered if Earthquake happens?

Shallow 5.1 earthquake rattles Los Angeles. More than 100 aftershocks follow Friday night quake.

california-earthquake

vi CBC

Experts suggest there is 30% chance of a significant damaging earthquake concurrence in British Columbia with in the next fifty years. An earthquake like this could destroy your home or contents, or even cause loss of life. Without proper protection, it could take years to recover from the financial loss.

In Canada, a typical property insurance policy does not provide coverage in the event of an earthquake. It is not a standard coverage which supposed to be included automatically.

However, if purchased, Earthquake Insurance provides reimbursement for the following if caused by earthquake shake:

  • Damage to your home, detached structures and contents.
  • Out-of-pocket living expenses, or Additional Living Expenses, in the event your home is uninhabitable.
  • For condominium Owners, assessments made against you by the Condominium Corporation in the event their insurance is not enough.

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How to read your condo insurance policy

First of all, the building is covered by your Strata insurance policy. So, no need to worry too much about your building, including structure, roof, wall, etc.
But the others are not covered by your strata insurance policy. That is why you need buy your own unit insurance policy, or condo insurance.
There are some key coverage you need to ask your agent or read your policy by yourself.
Dwelling Improvements, Alterations, and Additions
Condominium owners are covered for accidental damage to improvements you make in your unit for which your strata’s policy does not provide coverage, subject to your condo insurance policy limits. For example, you changed your shower in your washroom. It will be covered by your own condo insurance policy.
Loss assessment
Condominium owners will also receive up to $1,500 for assessments arising from covered damage. This can be used to pay for your share of property damage or injury awards for which your strata’s policy does not provide coverage. Typically, up to $50,000 is available, but this may vary depending on your policy.
The limit $1,500 is just an example. I know some policy has high limit, like $15,000 limit.
This one is very important. Say when some thing happen on your strata building, and it is covered by your strata policy, but the limit is not enough or the deductible is so high, your strata can not afford it. Then, after a Special General Meeting, a special loss assessment will be arranged for every unit. As an unit owner, you have to take your own share of it. Because your condo insurance provide this loss assessment coverage, you can survive in this financial situation.

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