Frequently Asked Questions about Personal Property 

Question: Why are property valuations so high?

Answer: Property valuations are generally higher than normal because of the unique circumstances of rebuilding, repairing or replacing property after a loss has occurred. When a claim is made and the insurer is ready to rebuild, repair or replace the damaged property, the process is time sensitive. Expenses to rebuild, repair or replace property generally increase because the process is time sensitive and requires specialization such as restoration contractors. In summary, to repair, rebuild or replace in its entirety or in part, a damaged home, costs more than building a new home.

Question: What is Co-Insurance?

Answer: Co-insurance refers to the process of insuring ones home to its “replacement Cost”. If your home is not adequately insured, then you may be penalized should you submit a claim, thus not receiving the full amount for your loss.  For Example, if “Replacement Cost” of your home is $500,000, but you only have it insured for $250,000, you will only receive 50% of the value of a loss, even if that loss is a small, partial loss. 

Question: What is the difference between unoccupancy and Vacancy?

Answer: Unoccupancy refers to a family (not necessarily all at the same time) that is temporarily away from their home, whether on vacation, shopping, or at the cottage, with the intent to return. Generally, most insurance companies consider a 30 day period of unoccupancy as property being vacant. When this is the case, your insurer and/or broker must be informed; otherwise your coverage may be jeopardized. These rules also apply to secondary residences or seasonal residences. Conditions apply that require a responsible and competent person (you or another) to check on your residence regularly if absent for extended periods of time.