Flood Insurance in Canada

2009-08-12T09:21:00.000-07:00

As large swathes of Canada has succumbed to what could be generously be referred to as a "Scottish" summer, flooding and it's effects are once again at the top of many homeowners agendas. Whether the weather (pun intended) is attributable to global warming is an argument for another day, but one issue that brooks no argument is the need for home insurance.

First, the bad news. Unfortunately, at this time, overland flooding in Canada is not an insurable risk. To explain why we return to the root concept of insurance that the premiums of many pay for the losses of a few. This is true across the whole insurance spectrum, car insurance, health insurance, life insurance et al. In the case of flood insurance we have an insurance product that simply doesn’t make financial sense to the underwriters.

That is to say, flood insurance is needed by a relatively small tranche of the Canadian population; therefore premium payers’ at large pay for what is a risk affecting a minority in effect. Premium payers would have to cover what are potentially huge payouts to a statistically small percentage of policy holders. In real terms, flood insurance is not economically viable at this time, as the premiums would be so high as to be prohibitive.

Ironically, Emergency Preparedness Canada has flood damage down as the number one hazard in terms of cost for property damage.

That is not to say that it is not possible to cover against any type of water damage in your home. In property insurance, there are several types of insurance polices that individuals can purchase: basic, standard, broad and comprehensive to give them their correct names.

Depending on the coverage, you will be able to choose from the following ; damage arising from sudden and accidental escape of water from indoor plumbing, heating, sprinkler, or air-conditioning systems; or damages caused by the malfunctioning of a domestic appliance, washing machines, dishwashers, even a waterbed. Not to forget another nightmare scenario, sudden flows of water from a domestic water main.

Homeowners can also, in most instances, purchase sewer back-up coverage to supplement their existing homeowners’ insurance policy, but this would exclude overland flows as previously stated.
By their very nature, having quite often grown up around major waterways, many urban centres are susceptible to overland flooding in an extreme weather event. As of now, it is safe to say that our hands are tied on overland flooding in terms of purchasing insurance.

Notwithstanding this fact, home insurance is still a smart investment, as needless to say, it is vital to adequately insure what is for most people, the single biggest investment they make in their lives, before even taking mortgage rates into account.

Whether you are a homeowner, looking for condo insurance or a tenant looking to insure belongings Kanetix can help you shop smarter with their free online comparison tool. Get a personalized quote on a range of property insurance instruments today and see if you can save money on your existing rate.

Common Insurance Products for Business Owners

2009-03-11T08:26:00.000-07:00

Every situation is different, but there are a series of business insurance products available to business owners that will help protect a firm from common risks. The following are some of the most popular types of business insurance coverages sought by business owners:

Commercial property insurance
Commercial property insurance provides coverage for your building, contents, stock and equipment against physical loss or damage. It is typically paired up with Business Interruption coverage which compensates you for your lost income while your business is closed due to an insured loss.

Comprehensive, or commercial general liability (CGL)
CGL insurance is designed to cover claims against your business for bodily injury or property damage to other people. Examples of coverage include if a customer is injured at your place of business, or say an employee damages property at a client's site. CGL is not a Professional Liability (errors and omissions) policy.

Get free online Canadian insurance quotes for commercial property and general liability insurance coverage.

Errors and omissions, also known as Professional Liability
This type of insurance can be important coverage for anyone who deals with customers who could claim that something that you or your company did on their behalf was done incorrectly costing them money or causing them harm in some way.

Accounts receivable coverage
Accounts receivable protection provides coverage when business records are destroyed by an insured peril and the business cannot collect money owed. The policy covers these uncollected sums plus the expense of record reconstruction and extra collection fees. It does not insure the physical value of the records themselves, such as the paper or computer disks and tapes.

Crime coverage and fidelity bonds
Crime coverage protects your business from losses resulting from crime, whether it's considered a burglary, robbery or theft. Fidelity bonds specifically cover theft perpetrated by your employees who might steal money, equipment or other assets from you (first-party fidelity) or a client (third-party fidelity.)

Disclaimer - The above description/explanation is intended as a guideline only, and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Kanetix Ltd. does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed.

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Flood Insurance in Canada

Common Insurance Products for Business Owners