FAQ

Tailor Made Insurance FAQ

Tailor Made Insurance would like to share (and answer!) some of the most frequently-asked questions about financial services and insurance coverage:

Insurance

Is my swimming pool covered by my home insurance policy?
Basic home insurance policies do not generally cover damage to above-ground swimming pools. It is, however, possible to obtain additional coverage to protect yourself against anything that could damage your above-ground swimming pool, with the exception of normal wear. Unlike most other insurance companies, the basic Intact Insurance home insurance policy covers damage caused to in-ground swimming pools.

My insurance policy covers all of the goods contained in my house. Why should I take out additional insurance for a specific item?
Home insurance policies generally include limits with respect to valuable or unusual items. Such limits apply specifically to jewellery, furs, silverware, boats, and certain collector's items. It is possible to increase the coverage for such items, or to eliminate certain exclusions, by adding coverage specifically for a given item.

Is a home-based business covered under my residential policy?
No. Residential policies exclude business or commercial belongings, as well as professional liability. Intact Insurance offers additional protection that covers the business you run from your home by extending your homeowner's policy and adding professional liability insurance to the package. For more information, contact one of our representatives.

Am I insured in the event of a power failure that lasts several days?
Insurance policies do not generally cover the additional expenses incurred as a result of an extended power failure, unless the authorities order your area evacuated. Intact Insurance offers additional coverage that enables you to pre-select an amount that you will be reimbursed per day in the event of an extended power failure. This can be used to cover any of your incurred expenses, such as: lodging, heating wood, meals in restaurants, protection of your goods, etc.

Is my insurance coverage adequate?
Have your needs assessed by a professional to determine the coverage you should obtain for material loss, death, disability, illness, etc. In the event of death, a life insurance policy may be essential for giving your dependants a replacement income or paying off your debts, such as a mortgage, or inheritance tax. Take the time to consider disability insurance, since an inability to work can have serious financial consequences. Make sure that you have a policy that provides adequate coverage in the event that damage occurs to your home, your automobile, and your other belongings.

Do I need a will?
If you die intestate (without a will), your assets will be distributed according to provincial law – perhaps differently than you intended. You should review your will about every 5 years, or whenever there is a change in your family circumstances. You should consult your legal advisor to discuss your will.

What is a power of attorney?
It is a legal document that allows you to confer responsibility on someone you trust to do certain things on your behalf: for example, rent an apartment or sell your car while you are on holiday or if you become incapacitated.

Your website constantly tells me to count on you for the details. Is that really necessary?
Insurance and investment products are very complex. The wrong choices can severely affect your financial well-being. Most individuals do not have the expertise to adequately analyze their risk management and investment needs, so it is crucial to get professional advice on these matters.

Is there other coverage I should consider on my auto policy?
Yes. There are a number of options for you to choose from that can enhance your auto coverage:
 
  • Increased Liability Limits -- Up to a maximum of $2,000,000.
  • Collision Coverage -- Covers damage to your vehicle in the event of an accident.
  • Comprehensive Coverage -- Provides coverage for theft, fire, vandalism, cracked windshield, and other perils.
  • Loss of Use Coverage -- Provides coverage for a rental vehicle while your vehicle is being repaired after an accident.
  • Rental Vehicle Coverage -- Extends physical damage coverage to rented vehicles in Canada and the United States.

Optional Benefits:

  • Income Replacement
  • Medical, Rehabilitation, and Attendant
  • Caregiver and Dependant Care
  • Death and Funeral
  • Indexation of Benefits
 
You can increase the maximum levels of accident benefits coverage on your policy. In addition, you can choose to index your accident benefits coverage to ensure it stays in line with the Consumer Price Index. If you have benefits available through your employer or elsewhere, you may not need to buy optional benefits. We can help you decide which optional benefits, if any, are appropriate for you.

Is there other coverage I should consider on my home policy?
Yes. Home, condominium, and tenant policies are generally issued with a standard set of limits and coverage. You may find that you need additional coverage to meet your specific circumstances. You can choose from a number of options that can enhance your property coverage:
 
  • Increased Personal Liability Limit -- Up to $2,000,000 may be available.
  • Antiques and Collectibles Coverage -- Specifically insures these items so you can realize their true value in the event of a loss. Often an appraisal will be required.
  • By-Laws Coverage (For Homeowners) -- Provides coverage for additional costs to repair or rebuild your home to comply with local laws. This is particularly important for older homes.
  • Earthquake Coverage -- Can be added to your policy.

To increase the limits on items beyond your standard coverage, in order to suit your requirements, ask about coverage for:

  • Bicycles
  • Business Property
  • Coin and Stamp Collections
  • Collectible Cards and Comic Books
  • Jewellery and Furs
  • Money and Securities
  • Spare Auto Parts
  • Utility Trailers
  • Watercraft


Can I be sued for more than the amount of liability insurance I purchase?
Yes. Your amount of liability insurance is never disclosed to anyone during a lawsuit. If you are successfully sued for an amount greater than the limit of liability insurance you carry, you will have to make up the difference from your own personal assets. This could mean the loss of your home, investments, RRSPs, and ultimately bankruptcy. That is why you should review your liability limits with an insurance professional to determine a limit that is appropriate for your circumstances.

What happens to my auto insurance after an accident?
Your insurance policy will be reviewed after every loss. If the loss is not your fault, your policy will most likely receive no rate increase. If you are deemed to be responsible, your policy may be re-rated with a higher rate charged at renewal or, at worst, the policy will not be renewed and you will have to look for coverage elsewhere.

What options do I have for paying my home or auto policy?
We have many different payment options available to you. They vary slightly based on which insurance company you choose. Most companies offer the following plans:
 
  • One Pay: Payment in full by the policy effective date.
  • Instalment Plan: Two, three or four equal instalments, with the first due on the policy effective date and the others due in set increments (usually 30-, 60-, or 90-day intervals). A small service charge usually applies to each payment. The number of instalments, payment interval, and service charge vary slightly from company to company.
  • Electronic Funds Transfer (EFT) Program: Payments are automatically withdrawn from your bank account. A 3% charge is added to the full premium amount.
 
Some of the insurance companies we represent have programs available where no service charge applies to any of the payment plans offered.

What does "replacement value" mean?
For home insurance, the replacement value guarantee allows you to replace the insured item with a new item of the same kind and quality if that object is destroyed or rendered unusable. In this case, the insurer does not apply any depreciation.

For automobile insurance, the owner of a new vehicle can also take out a replacement value guarantee. Various options are available in the case of a total loss, ranging from the reimbursement of the initial purchase price to the replacement of the destroyed vehicle with a new vehicle that has the same features.