Myth: A Home’s insurable value is based on its market value.
Fact: The market value of a property is determined by local real estate trends, the housing market, the home’s condition, age, location, and property size. The insurable value of a property is calculated based on the cost to reconstruct or replace your property after a claim.
To put it simply, it is not uncommon for the insurable value and the market value to differ.
Myth: Home insurance policies cover damages caused by insects or rodents
Fact: In most cases, insurance companies do not cover damage caused by caused by birds, vermin, insects, raccoons, or rodents
Myth: A home business is automatically covered through your home insurance policy.
It is always best to contact your broker to ensure you have the best coverage in place for your home business. There are many options, such as: adding a home-based business extension or setting up a separate home-based business insurance policy.
Myth: 2-door cars are more expensive to insure than 4-door cars
Fact: Whether your car is 2-door or 4-door does not have an impact on your insurance. The rating variables are determined by the Insurance Bureau of Canada, some of which are listed below:
- The type of car you drive (make, model, year)
- Price of the car
- Theft rate
- Repair costs
- Previous claims history
Myth: Getting a parking ticket affects your insurance
Fact: Parking tickets do not have any effect on your insurance.
In conclusion, it’s time to bid farewell to those pesky insurance myths that have been lurking around for far too long!
Please reach out to us for any insurance questions you may have, we are happy to help