The Rains Poured Down And The Claims Pour In

This is a good time for homeowners and drivers to check their insurance coverage - Why?

Home Insurance

If your agent or broker sold you a homeowner's policy with "Standard" coverage instead of "Comprehensive" your may only get $30 for your $2,000 couch, instead of the full replacement cost. The difference in rates between Standard and Comprehensive coverage can be less then $100.

Flood damage is never covered, but water damage is only covered if you purchased "water and sewer back-up coverage" which is about $50 extra to be added to a policy. If the water comes into a person's basement through the walls or cracks in the floor, there is no protection against this. In fact, it is specifically excluded in home insurance policies as the cause of this kind of leakage is considered to be structural defects. Not insurable.

Wind damage will be covered under a homeowner's policy, but the cost to replace a few missing shingles may not be worth submitting having a claim on your insurance record.

But, if the insurance companies are able to get the tornado classified as a "catastrophic loss" the government may pay for these losses, not the insurance companies. And any claims made will not show up on your on your claims history. So, make that claim.

The Ontario Government may now get its chance to experience what it's like to get into the insurance business.

Vehicle Insurance

Most of the storm damage to vehicles will be from "hail" or "rising water". Both of these are covered under your auto insurance, as long as you have purchased "Comprehensive" coverage. Yet it is subject to your deductible. Tree limbs, branches or other falling objects are also covered under the comprehensive coverage of your policy.

A number of drivers have increased their deductible or dropped comprehensive coverage in order to save money.

Coverages & Rates directs both homeowners and drivers to the insurance company with the best rate, which can allow people to access better coverage at lower prices.