Is your dryer a firetrap?

If you have not already received it, you will shortly be getting in the mail the first of three mailing from your Ontario Auto Insurance carrier. These mailings are mandated by the Financial Services Commission of Ontario (FSCO).

The new Ontario Auto Insurance program is being put in place because the cost of claims for minor injuries, like sprains and whiplash, have gone up substantially and FSCO wants to make coverage changes to keep costs down. The changes to auto insurance in Ontario are effective for policies purchased or renewed after Sept. 1, 2010.

Changes being made to the current standard include

• For non-catastrophic injuries, there is a reduction by half of the $100,000 coverage for medical and rehabilitation benefits and $72,000 coverage for attendant care benefits

• For housekeeping and home maintenance expenses, coverage of up to $100 per week is restricted to catastrophic injuries

• For income replacement benefits, coverage is changed from 80% of net income up to $400 per week to 70% of gross income up to $400 per week

Options to purchase extra coverage include:

• Inflation indexing

• Weekly limit for income replacement benefits can be increased by up to $1,000

• doubling in death and funeral benefits to $50,000 to an eligible spouse and $20,000 for each dependent

The Insurance Bureau of Canada (IBC) has a chart of all the changes on their website.

http://www.ibc.ca/en/C...hart.pdf

These changes may have an unanticipated effect on what amount you will receive in the event of an automobile accident so you should be reviewing the mailings you receive and discussing your personal situation with you Insurance broker.

Both the IBC

and mychoiceinsurance websites have excellent reference material to help you with your decision making.

After yesterday’s earthquake in Ontario and Quebec, the possible tornado in Midland and the severe thunderstorm in South Western Ontario, it seems like a good time to review what your Home owners insurance policy covers relative to these natural disasters..

What about a tornado, is damage covered?

Yes. Tornadoes are very dangerous windstorms, and home insurance covers damage from wind. This applies to the outside of a building (except for antennas, satellite dishes, etc.). The interior of a building and its contents are covered only if the storm has first created an opening. Although not as common here in Ontario, similar logic is applied to Hurricanes.

What about an earthquake, is damage covered?

Most Home Owners Insurance policies exclude damage caused by snowslide, earthquake, landslide or any other earth movement: however if they cause a fire or explosion, the policy will normally pay for the resulting loss or damage.

If you want to be protected against damages caused by an earthquake, you must purchase this coverage separately. Earthquake insurance generally covers loss or damage to your property caused by the actual shaking of the earth. Cost varies according to location and type of construction.

If you have not reviewed your home insurance policy in a while it may be a good time to check with your Insurance Broker to find out what your home insurance policy covers.