Every day we are asked the same questions, which is great because it means our customers value getting the right advice for their insurance. We’ve broken down these frequently asked questions into several categories for easy navigation. Nice and simple. You’ve got questions, we’ve got answers.
WHAT IS INSURANCE?
Insurance is a safety net to protect you and your family’s financial well-being in the case of an unexpected loss. It is a legal arrangement that guarantees support in the event of a covered accident or incident.
WHAT IS A DEDUCTIBLE?
A deductible is the portion you are responsible for paying in the event of a claim. For example, if your car insurance policy has a $1,000 deductible for collision and there are $5,000 in damages, you will pay the first $1,000 and the insurance company will pay the remaining $4,000.
WHAT SHOULD I ASK WHEN REVIEWING INSURANCE OPTIONS?
As insurance brokers, we are licensed professionals who bring our experience and judgment to the table as your personal advisors. Our advice is impartial and it’s always in your best interest. Here are four things to consider when reviewing your options:
- Is this policy tailored to me?
- Do I understand all the fine print?
- Is there anything I missed?
- Did I get the best price?
SHOULD I HAVE MY HOME AND AUTO INSURANCE WITH THE SAME COMPANY?
Absolutely YES! If you can package your home and auto together with the same insurance company you should do it. There could be significant cost savings involved, in addition to other benefits.
DO CLAIMS AND TICKETS AFFECT MY INSURANCE PREMIUMS?
Yes. Claims for homes and claims and violations for autos do make a difference in the rating of your policy. The impact depends on the severity of the claim and if you were at fault. Tickets and accidents will impact your premiums for a 3-5-year period while major tickets such as DUI’s and careless driving can impact your rates for years and years. Rates aside, please don’t drink and drive.
HOW DO I KNOW IF I HAVE ENOUGH INSURANCE?
We can help assess your needs based on the details you provide about your home or vehicle. In the case of home insurance, a complete video or photo inventory of your belongings will help you get the right coverage and make it easier to file a claim.
WHAT IS REPLACEMENT COST?
Replacement cost is the total cost that your insurance company would pay to fully reconstruct your home if it were destroyed. Replacement costs include things that may not be included in the resale value, like the cost and availability of skilled labour, debris removal, extra expense due to more stringent building codes, and more. If you make upgrades or do renovations, talk to us to make sure you have the right coverage.
I ALWAYS HEAR ABOUT UNINSURED DRIVERS. DO I HAVE TO BUY INSURANCE?
Yes. By law, anyone who owns a motor vehicle and drives on public roads anywhere in Canada is required to have certain basic coverage. You have to purchase Accident Benefits insurance, Uninsured Automobile coverage and at least $200,000 worth of Third Party Liability insurance.
There is one exception. In Newfoundland and Labrador, Accident Benefits insurance is not compulsory, but we strongly recommend you avail of this coverage.
WHAT IS ‘THIRD PARTY LIABILITY’ INSURANCE?
Third Party Liability insurance covers you if your car injures someone else or damages his or her property. Should a claim against you be more than your level of coverage, you can be held personally responsible for the balance. For this reason, most drivers purchase more than the minimum $200,000 coverage required by law.
WHAT IS BUSINESS INSURANCE?
WHAT KIND OF INSURANCE DOES MY BUSINESS NEED?
Our team of Commercial Account professionals can guide you with this. We`ll help identify the risks in your business and help you create specific strategies to deal with them. For more information on our approach, check out our Risk IQ process.
WHAT IS THE DIFFERENCE BETWEEN GENERAL LIABILITY AND PROFESSIONAL LIABILITY?
In very broad terms general liability is slips, trips and falls meaning bodily injury and/or property damage to a 3rd party. Professional liability is protecting your business against bad advice or guidance. Any time you give professional opinion, advice or guidance you are opening yourself up to a professional liability claim.
WILL HAVING BUSINESS INSURANCE PREVENT LAWSUITS?
No, nothing can prevent your business from being sued. Good business practices reduce the probability of a lawsuit but a person or organization can sue your business for almost anything – frivolous or justified. Your business insurance coverage can help you pay to defend allegations or actions against your business.
IS COMMERCIAL / BUSINESS INSURANCE TAX DEDUCTIBLE?
Typically, yes, commercial/business insurance is tax deductible, as long as the coverage is for the purpose of operating a business, profession, or a trade. Businesses may not deduct their business insurance premiums if the coverage is for the purpose of a self-insurance reserve fund or a loss of earning insurance policy.
I HAD A CLAIM, NOW WHAT?
We know that “stuff happens” and there will be the unfortunate instance where you will have a claim to report. We’re here to help you every step of the way, making your claims experience as simple and convenient as possible. Our Claims Coordinator provides clients with fast, efficient and comprehensive claims administration and advocacy, working closely to assist them in obtaining the best possible outcome. Once your insurance company has been advised, a Claims Specialist, called an Adjuster, will be assigned to look after your claim. The amount you receive for your claim will depend on the type of coverage you bought. If you need to file a claim with Wedgwood Insurance, please call toll-free 1-800-706-2676.
WHAT IS THE ROLE OF THE CLAIMS ADJUSTER?
The adjuster’s job is to determine the facts relating to the claim and the extent to which the claim is covered by insurance. The adjuster also attempts to reach an agreement with the other people involved regarding the amount of their loss and extent of their responsibility.
HOW LONG AFTER AN ACCIDENT CAN I MAKE A CLAIM?
Although it is recommended you notify your insurer as soon as possible if you’re making a claim, your policy states that a written declaration must be made within 90 days of the loss or damage. If you don’t make your claim within the 90 days, the insurance company may not be legally bound to honour your claim. In practice, however, most companies will honour a claim made within one year if there is a plausible reason for the delay.
If you’re making a claim against another driver, you should notify his or her insurance company as quickly as possible. Under some circumstances, and in some provinces, the claim against the other driver must be started within one year; in others, within two years.