5 Questions You Should Ask When Getting Insurance

There are many Agencies and Brokerages to choose from that offer insurance, but not all companies are alike. Below are 5 questions you should ask when getting insurance.

Are there limits to my coverage?

Limits are dollar amounts that determine the amount of protection and the monthly premium. The age of your home and automobile are factors in deciding limits and deductibles. For a home, the limits for detached structure, personal property and additional living expenses are determined by percentages of the value of the home. For personal liability, policies typically have a $1,000,000 minimum limit, but higher limits are available for purchase.

Is there extended insurance or an umbrella policy available?

An umbrella policy is a type of insurance that provides personal liability coverage over and above what may be covered by your homeowners policy. If your liability insurance isn't enough to cover damages, then the umbrella policy will cover the difference. Find out if there are any exclusions and what the limits are per category in your home.

What happens to my policy and premium if I have to file a claim?

The number of claims you file has a direct impact on your rates. If you file too many claims, they may not renew your policy. If the damage is caused by you, they may increase your rates. Even if the damage is not caused by you, you may experience a rate increase because the risks are higher to insure you because of your driving conditions or the frequency of natural disasters in your area. A claim on your home insurance will not increase your auto policy premium, and a claim on your auto insurance will not increase your home policy premium.

How do I file a claim?

Each insurance provider requests different information when filing a claim and has different timelines of when the claim must be filed by. Forms need to be completed by the deadline. A visit by an insurance adjuster may be required. They may also need information about the date, location, and police reports if applicable. 

How long does it take to get reimbursed or paid after a claim is filed?

The time it takes to get reimbursed or paid after a claim is filed can vary greatly depending on the type and severity of the claim. For example: if the claim is for minor auto damage or a small theft claim, your property will be repaired or replaced as soon as possible. If, however, your house suffers a fire, your property will take much longer to be repaired or even rebuilt. 

Home insurance is a key requirement for your mortgage. The Auxilium Team is happy to provide you with a referral to our trusted partners for a consultation and quote.

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Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.