VANCOUVER, July 12, 2012 /CNW/ - In the past 10 months, Square One
Insurance has talked to 2,800 residents in Alberta and BC. It found
that an astonishing 21% did not have the right home insurance
protection, nor did they know better protection was available for a
marginal amount more.
"It's shocking just how many Canadians don't have the right home
insurance protection," states Daniel Mirkovic, President & CEO of
Square One. "Ironically, those who have been loyal to the same home
insurance provider for more than 5 years are most at risk of being
This problem arises from the fact that many providers in the home
insurance industry continue to offer named-perils and broad-form
policies, both of which are outdated. To make sure you're not
blindsided when you have a claim, you should have a comprehensive (or
all-risk) policy. A brief description of each type of policy follows.
Named-perils policies only protect against loss types listed in the contract wordings.
Typically, this includes fire or lightning, explosion, smoke, falling
objects, impact by aircraft or land vehicle, riot, vandalism or
malicious acts, some types of water damage, windstorm or hail, and
theft or attempted theft. Unless you suffer loss or damage from a
specified loss type, you're not protected.
Broad-form policies provide comprehensive protection on buildings and named-perils
protection on personal property. That means, for example, if you spill
paint on your flooring and furniture during a home improvement project,
only the resulting damage to your flooring would be covered under a
broad-form policy. The damage to your furniture would be uninsured.
Comprehensive (or all-risk) policies protect against all loss types except those specifically excluded in
the contract wordings. Loss or damage due to wear and tear, snowslide
or landslide, acts of terrorism, and war are some examples of the loss
types typically excluded in comprehensive policies. Even with these
exclusions, comprehensive policies provide the best available
When Laura Florio reviewed the policy for her Vancouver house, she was
surprised to learn she had broad-form protection. "I went to my
insurance agent and asked why I had a broad-form policy," says Florio.
"The agent told me that it provides the broadest coverage. I knew that
wasn't the case so I asked for a quote on a comprehensive policy. When
she refused, I switched to another provider."
The cost to upgrade from a broad-form policy to a comprehensive policy
can be as little as $15 a year for condo owner or renter, and $35 a
year for house owner. According to Mirkovic, the only time named-perils
or broad-form policy may be appropriate, is if you have a higher risk
home that doesn't qualify for a comprehensive policy.
To make sure you have the right protection, Square One encourages BC
residents to speak to their insurance agent or complete a free online
assessment of their current policy at http://www.squareoneinsurance.ca/policy-assessment.
Established in 2011 and based in Vancouver, British Columbia, Square One
Insurance provides Canadians living in urban centres with modern,
relevant home insurance. Square One is one of the few insurance
providers in Canada specializing in home insurance and offering truly
customized policies that can be purchased over the phone and online. For more information about Square One, visit www.squareoneinsurance.ca.
SOURCE Square One Insurance Services Inc.
For further information:
Square One Insurance Services Inc.
Tel: 778.331.6933 ext 104