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Frequently Asked Questions – Property Insurance – Coverage FAQ
Sections of my roof blew off in a windstorm. Am I covered?
Yes, subject to your deductible.
Who is covered under my homeowner's policy?
- The person(s) named in the declarations and, while living in the same household, his or her spouse, the relatives of either or any person under 21 in their care
- Any full-time student at college or university who is dependant on the named insured or spouse of the named insured
If a neighbour slips on my sidewalk and threatens to take me to court for damages, will my policy protect me?
Yes. Your policy will pay for damages if the accident is the result of your negligence. It will also pay for:
- Legal costs of defending you against a claim
- Medical expenses arising from injuries that you are not negligent for, to persons who do not live in your household (covered under the medical payments part of your homeowner policy)
The standard amount of liability protection is $1,000,000. If you feel you need more, consider purchasing:
- a higher amount of liability protection, or
- a Personal Umbrella insurance policy which provides increased liability limits (ranging from $1 million to $5 million), among other benefits
If I go on a winter vacation and while I am away the water pipes in my house freeze and subsequently burst, am I covered?
Most insurance policies state that if you intend to be away from your house more than 4 consecutive days, you need to do one of the following in order for coverage to be maintained:
- Arrange for a competent person to enter your home daily to ensure that heating is being maintained
- Use a heating alarm monitored by a 24-hour service
- Shut off the water supply and drain all the pipes and appliances before leaving
A burglar vandalizes my house, causing considerable damage and takes $10,000 worth of my jewellery. Am I covered?
Yes to the vandalism, yes to the jewellery (subject to a policy limit). Typical policies pay between $3,000 and $6,000 for jewellery because it is commonly stolen. Consider having your jewellery appraised to evaluate your need.
If you feel that your coverage is not adequate, consider purchasing:
- OTIP's Education Extra Package which increases your jewellery limit to $10,000, or
- A Dolce Vita insurance policy which includes a $50,000 limit for jewellery, among other benefits.
I accidentally spilled a can of paint on my wall-to-wall carpeting. Am I covered?
Yes. Wall-to-wall carpeting is regarded as part of the "building" which is covered on an all risks basis under both an all risks or comprehensive policy and a broad policy. Carelessness – even negligence, so long as it's not deliberate – does not negate your coverage. The amount of coverage is subject to your deductible.
I accidentally spilled a can of paint on my area rug. Am I covered?
There is coverage under an all risks or comprehensive policy, subject to the deductible. Coverage would not be extended under a broad policy since an area rug is considered a personal belonging. (Personal belongings are covered for 14 named perils, which exclude this type of claim.)
Am I covered for earthquake damage?
No, earthquake coverage is sold as additional coverage to the homeowner policy. To determine whether you should purchase this insurance, talk to an OTIP representative. In earthquake prone areas, the price of this insurance is relatively high. In other areas, it is relatively inexpensive.
If I go on a teacher exchange will it affect my homeowner policy?
No. You will have the same coverage. It is important that you talk to an OTIP representative before you leave to inform us of your departure. As well, we recommend that the exchange teacher obtain tenant's insurance.
Weeks of heavy rainfall caused the sewer to back up into my basement, leaving several inches of smelly sludge. Am I covered?
Coverage for sewer-back up is not included with your policy. You can however purchase additional coverage by talking to an OTIP representative.
Why don't insurers generally offer flood insurance?
In Canada, home insurance policies generally do not cover damage caused by water overflowing the banks of rivers or streams, or shores of lakes and oceans. The main reason is that most areas that can be flooded eventually will be. Insurance is there to compensate you financially for losses that are random and unexpected. If you live on a flood plain, there's very little unexpected about flooding. Typically such losses occur at fairly regular, and in some parts of Canada, fairly frequent intervals.
Flood insurance would be of interest only to a relatively small population of people living in areas prone to flooding, thus defeating the basic principle of insurance that the premiums of many people pay for the losses of a few.
Insurance companies are unable to implement adequate loss prevention measures in order to limit their exposure to flood risks. Loss prevention measures would include preventing construction in flood plains, and upgrading dykes, flood control dams, channels and sewer systems – all representing infrastructure enhancements/developments which are within the governments' jurisdiction, not the insurers'.
During a storm, a tree fell and damaged my roof. Am I covered?
Yes. You are covered for the damage to your roof, subject to your deductible.
During a storm, a tree fell but did not damage my property. Am I covered for the cost of removing the tree?
No. Your trees and shrubs are covered for losses due to risks like vandalism, theft and fire, but not wind damage.
During a storm, the power from the electric utility is lost. All the food in my freezer spoiled and must be thrown out. Can I make a claim?
Yes. The comprehensive homeowner policy includes coverage against spoilage of food while contained in your food freezer unit located on your principal residence premises resulting from outside power failure or mechanical breakdown of the food freezer unit.
My luggage was stolen while I was touring Europe. Am I covered?
Yes. Whether you have a comprehensive all risks policy or a broad form policy, your luggage would be covered subject to your policy deductible.
My golf clubs were stolen from the trunk of my car. Am I covered?
Yes. Whether you have a comprehensive all risks policy or a broad form policy, your golf clubs would be covered subject to your policy deductible.
I have a 30-foot boat with a 60 horsepower engine. If it is stolen, am I covered? What if there is a boating accident and I get sued? Am I covered?
If your boat is stolen from your residence, in most cases, you can recover only $2,000. There is no coverage for liability arising from an accident with the boat. The homeowner policy provides liability coverage for boats with outboard engines less than 25 horsepower in total or an inboard-outboard motor of not more than 50 horsepower. You should inquire about obtaining a policy specifically for larger watercraft.
My house is close to a lake and I have heard that if my house is destroyed by wind, the town's new building code requires that I rebuild the house on stilts.
This will cost $30,000, in addition to the cost of rebuilding my house. Am I covered for this extra cost?
No. The comprehensive homeowner policy excludes costs caused by ordinance or laws regulating the construction of buildings.
Do insurance companies cover losses due to water damage?
Yes. Coverage is usually limited to damage arising from sudden and accidental escape of water from an indoor plumbing, heating, sprinkler or air-conditioning system; or from a "domestic appliance" (which includes water heaters, water beds, washing machines and swimming pools) on your premises; or from a water main.
Coverage usually excludes damage arising from:
- floodwater – such as that from an overflowing river
- repeated or continuous water seepage (from a cracked basement wall or an un-repaired pipe)
- the backing up of water from a sewer, sump or septic tank
- leaky gutters and downspouts.
Optional coverage for some of these perils may be available. Call an OTIP service representative for more information.
Am I covered for direct losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism and theft?
Yes. The comprehensive and broad form homeowner policy provides coverage for a large number of perils, including all those listed. There are some limits, however, on the amount of insurance you have.
Check the dollar limits of insurance in your policy. Make sure you are comfortable with the amount of insurance you have for specific items. For example, the standard policy provides only $6,000 for theft or mysterious disappearance of jewellery. If your jewellery is worth more, you should purchase higher limits. You may wish to add a floater to your policy to cover specific possessions, such as expensive paintings or silverware.
Why do I need apartment insurance? I don't have a lot of personal belongings.
Landlords have relatively few legal obligations to compensate tenants for damage to or loss of the tenants' personal possessions. Tenants, on the other hand, are responsible for harm they may cause to any part of the building in which they live, or to others who live or visit there. A fire ignited by a tenant's defective toaster could, for example, gut an entire apartment complex. That's a lot of liability!
If you've just moved into your first apartment, you may think you haven't accumulated anything of real value yet. Think again! A small amount of furniture may not look as if it's worth much, but when you have to replace it with something new, it could break your budget. If you've bought a CD player or furniture on credit, and it's destroyed by fire or stolen, you're still responsible for paying the balance to your creditor, even though you now don't have the item. That can hurt, too!
If you don't see the answer to your question, please contact us.
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