What is the difference between an insurance broker and an
insurance agent?
An insurance broker deals with more than one insurance company
while an insurance agent deals with only one specific company.
This means that a broker can recommend the best coverage and prices
based on a number of companies rather than only one.
In the event of a claim on my house or tenants policy what
do I do?
When a claim occurs call your insurance broker and give the appropriate
details of the claim (date it happened, what happened and police
report number, etc.). The broker will then call the insurance
company and the insurance company will appoint an insurance adjuster
to contact you and settle the claim with you. If you are having
problems with the adjuster or are unclear as to what the adjuster
is basing his settlement on call your broker for further information
or advice. (A vehicle claim in Manitoba is handled directly by
the provincial company, MPI and claims must be reported directly
to one of their claims offices).
Are there any real differences between the various companies,
other than price?
Generally speaking all companies policies cover the same basic
perils (fire, hail, lightning, vandalism, theft, certain types
of water damage, smoke damage, etc.,). There can however, be some
important differences offered. These differences are generally
contained in the "special limits" contained in the policy and
the various options or extensions that are available.
What are "special limits"?
Every package policy (homeowners, tenants, condo) has a number
of clauses contained in the policy outlining the "special limits"
of the policy. These clauses limit the amount payable for certain
specific types of items such as jewelry, furs, collectibles, silverware,
boat equipment, coin and stamp collections, bikes, silverware,
securities and cash. In many cases most of the limits contained
in this section of the policy may not be important to you. (For
example if you do not have any boat equipment, the limit on boat
equipment won't matter). However, there may be cases when one
company's limit may be substantially different than another and
if you have an item that falls under one of the special limits
categories this would be a reason for purchasing one policy rather
than another. Some examples of this are:
a. Bikes on some policies are limited to $300 per bike per claim
while on others the limit is up to $1000.
b. Jewelry and fur limits vary from $2000 to $6000 depending
on the insurance company. All companies allow you to specifically
schedule jewelry and furs for specific limits. They are then insured
on all risk, zero deductible basis. The cost of doing this varies
from company to company but, is approximately $15 per $1000 of
value.
c. Most companies limit coverage to $1000 or $2000 for collectibles
and memorabilia. This means that if you have a valuable collection
of hockey cards, comics, etc, these may not be properly covered.
One company does not currently have a limit on this type of article.
d. There are many types of property that can be insured on special
floaters or riders. These include camera equipment, musical instruments,
hearing aids, boat and motor equipment, stamp and coin collection,
bicycles, computers, TV dishes and antennae.
What type of options should I consider when purchasing a homeowners
package policy?
There are many options available, some options are available
only on newer homes, or when other qualifying criteria are met.
Some of the common options or extensions available are:
a. Sewer Back Coverage (sometimes referred to as extended water
damage coverage).
This option covers damage done due to a sewer back up and includes
water damage from the failure of a sump pump. In most cases this
coverage is purchased in $5,000 increments and a questionnaire
is required.
b. Residence glass coverage - This option reduces the deductible
on glass claims (ie. the windows of your home) to $25 or $50 from
the normal policy deductible of $500.
c. Single limit endorsement - This option allows you, in the
event of a claim, to apply any of the limits on the policy towards
a shortfall in any other category. For example, if your home is
insured for $100,000, your contents for $70,000, your outbuildings
for $10,000 and your additional living expense at $20,000, and
you had a fire loss and discovered that the $70,000 on contents
was not sufficient, you could then take coverage from either the
outbuildings section or additional living expense section to apply
additional coverage for your contents. This means that the total
of all limits (in the above example $200,000) can be applied to
the claim as needed.
I live in a condominium, what type of coverage and extensions
should I be concerned with?
When you own a condominium you are not responsible to insure
the building itself; this is insured under the condominium corporation
policy. You do, however, need to insure your contents and tenant
improvements and also protect your liability exposure. The best
type of condominium policies include the following:
a. An extension to include tenant improvements. (Some policies
require that you purchase additional coverage for tenant improvements
while others automatically contain a 100% extension over and above
the content limits on the policy).
b. Loss assessment coverage - In the event that there is a loss/claim
involving the building and the condominium corporation has not
properly insured the building, the unit owners can be assessed
a proportional amount to cover the loss. The best policies include
up to 250% (2 1/2 times) the contents limit for this. Many companies
do not extend this loss assessment coverage regarding liability
claims while the best coverage offered extends your liability
coverage to include a liability claim against the condo corporation.
I live in an apartment which is built of concrete and has
good security. Do I really need to buy insurance?
Tenants package policies include extensions of coverage to cover
theft away from home (ie. theft of contents from your car). They
also include liability coverage to cover you for damage that occurs
through your negligence. For example if you are responsible for
starting a fire in your apartment the building owner's insurance
company can sue you for the cost of repairs. The liability coverage
on your policy will pay for this damage if you are found legally
responsible for the damage.
Auto Insurance Questions
How does Manitoba's Automobile insurance work?
In Manitoba, auto insurance is underwritten by a government corporation:
The Manitoba Public Insurance Corporation and is sold under the
name Autopac. All vehicle owners must purchase their insurance
through the government corporation. This plan is sold through
approximately 350 independent insurance brokers and a few MPI
service centers. The cost for Autopac products is the same at
all locations.
Driver’s Licences are available at all locations that
sell Autopac.
If I am moving into Manitoba, how long do I have before I
must purchase insurance on my vehicles?
Manitoba law allows you 90 days to purchase insurance on your
vehicles once you become a resident of Manitoba. You should however,
check with your own jurisdiction as to whether you would continue
to be covered under your existing out of province coverage.
What coverage is offered by Autopac?
The "Basic" coverage which is included when you purchase
insurance on most vehicles (cars and light trucks) is $200,000
liability coverage and $500 deductible all perils coverage. You
can increase the liability coverage (up to $5,000,000) and reduce
the all perils coverage to $300, $200 or $100 deductible for an
additional charge.
Are there any discounts given for having a good driving record?
Discounts are available (up to 25%) for drivers with a good driving
record. In order to qualify for discounts a driver must have a
least 1 merit on their drivers license and have had no at fault
accidents or major convictions. It is important that you obtain
a Manitoba drivers license prior to registering a vehicle. Out
of province drivers moving into Manitoba are required to provide
an experience letter from their previous insurer.
What is required in order to register a vehicle?
a. If you are new to Manitoba you should obtain a Manitoba drivers
license prior to registering a vehicle. If you are registering
a vehicle previously registered in another jurisdiction you will
be required to produce a safety inspection and the previous registration.
Safety inspections done in other jurisdictions may be acceptable
if they are recent.
b. For vehicles purchased in Manitoba a safety inspection, a
bill of sale and a transfer of ownership document (on the back
of the registration) must be supplied prior to registering a vehicle.
c. Taxes may be payable. There are no taxes on insurance, however
if tax has not already been paid to a dealer when the car was
purchased the 7% provincial sales tax will be payable when you
register the vehicle. There are circumstances where tax may not
be payable: for example if the car is a gift from a spouse or
some other qualifying relative or you are new to Manitoba and
you are claiming the vehicle as settler’s effects.
d. Payment can be made by cash, cheque, debit card, Visa or
MasterCard. Payment can be made in full, on a quarterly basis,
or on a pre-authorized basis from either your bank or credit card.
If I am involved in a motor vehicle accident in Manitoba can
I sue the at fault driver of the other vehicle?
Under Manitoba law you can not sue the other driver for anything
other than property damage (ie. damage to your car). No fault
benefits are provided under Manitoba law that prescribe the
benefits you are entitled to. Damages for injuries, loss of life
are covered under these prescribed benefits and are paid without
ascertaining fault in an accident.
If I cannot be sued for damages other than property damage,
is it important to purchase more than the basic $200,000 liability
coverage?
It is conceivable that you could cause more than $200,000 of
property damage (ie. a train wreck). It is also important to remember
that if you travel outside of Manitoba you can be sued if you
are at fault in an accident. In other jurisdictions, particularly
in the U. S. $200,000 liability coverage may not be sufficient
protection.
What do I do in the event of a claim?
In the event of a claim, the claim must be reported to one of
the Autopac Claim Centers. Phone to make an appointment at one
of the claims centers (985-7000). An adjuster at the claims center
will then estimate damages, take statements, etc.
Autopac brokers do not handle claims, however if there are questions
related to claims they may be able to answer your questions.
Where can I obtain a new drivers licence?
All Autopac brokers and MPI service centers can issue new drivers
licences and renew current licences. For new licences proof of
identity (passport, birth certificate, proof of Canadian Citizenship
etc) and proof of Manitoba residency (bank statement, hydro bill
etc showing your Manitoba address) will be required. Drivers’
licences are renewable annually with the expiry date fixed at
four months after your birth date.
For more information refer to the MPI
website.
If you have any questions about insurance
please e-mail us and we would be happy to respond (contact
info).
© 2006 G.K. Braun Insurance
Services Ltd. |
