Do you have a question about home insurance?

Do you have a question about home insurance?

The insurance system works better if everyone involved understands what insurance is, what it does and how it works.

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Watch this space for the answers to some of the most frequently asked questions.

Q. In a few weeks I will be leaving for a two-month vacation. My friend told me that my insurance requires that someone check on my house regularly while I'm away. Is this true? If so, how often does the house need to be checked? A. Your friend is right. After you have been away for three days, somebody must go into your home daily. This is to protect your home against the damage that could be caused if your plumbing freezes or if there are problems with your heating or air-conditioning systems. Q. I have some valuable jewellery that I inherited. My insurance broker tells me I should have it "scheduled," whatever that means! I thought it was already covered under my homeowners policy -- and now I'm supposed to pay more to have it "scheduled"? How come? A. That's a gem of a question, but there's a good reason for scheduling your jewellery -- and it has nothing to do with timetables! Picture this. You come home from a night out at the movies, only to find that your house has been broken into and all your valuable jewellery stolen. You call your insurance broker, who informs you that your jewellery is covered for only $2,000 on your homeowners policy if it was stolen. And yet, you know it was worth much more than that. That's where scheduling comes in -- to fill the gap between what your typical homeowners policy covers and the value of your jewellery. "Scheduling," in insurance lingo, is an optional "extra" that beefs up your insurance coverage. You would schedule items like jewellery or furs, so you could recover their current value if they were damaged, lost, or stolen. Your homeowners policy generally pays only up to a limit of $2,000 for a theft loss, so if your jewellery is worth more than that, you should have it scheduled. Another advantage to scheduling is that usually, you do not have to pay a deductible (the portion of the claim that you agree to pay) in the event of a loss, as you would for a claim under your homeowners policy. You should also have your valuables appraised, so you know how much insurance you need. Be sure to keep the appraisal up to date, as your jewellery may appreciate in value, and you want to have the appropriate amount of insurance. (Conversely, if it depreciates, you could be paying too much to insure it.) Also, keep any receipts to verify ownership of your valuables. This is particularly important for items like camera equipment that you would not normally have appraised, since it probably will depreciate in value. Finally, keep all your valuables locked up, either in a safe on your premises, or in a safety-deposit box. While you can buy insurance to cover the cost of replacing your precious heirlooms, you can never replace their sentimental value. Note: The preceding information is based on Insurance Bureau of Canada's guideline wordings. Remember, policies vary, so when in doubt, consult your insurance representative. Q. I recently filed an insurance claim for damage caused when a sewer backed up into my basement. I have the appropriate coverage, which is supposed to cover "replacement cost." Who decides what has to be replaced and what can be cleaned up and returned to me? For example, a coffee table was slightly damaged by water. The adjuster wants to have it refinished instead of replacing it. But refinishing the table will devalue it. Do I have to accept the refinished table, or can I be reimbursed for the amount the table was valued at prior to the water damage? A. It is normal for an insurance company, under the circumstances that you have outlined, to return the table to the condition that it was in prior to the loss. By so doing, the company meets its obligations under the insurance contract. The possible loss of value caused by refinishing the table is an indirect loss that is not insured. You may wish to discuss this with a claims supervisor, but it would seem that by refinishing the table, the insurer would be meeting its obligations under the terms of the contract.