Frequently Asked Questions – Property Insurance – General FAQ

To save money on your property insurance, consider these tips:

When shopping for insurance:

• Compare rates, protections, discounts and services offered
• Compare access to professionally trained insurance personnel
• Request a free, no-obligation quote

When setting up or reviewing your policy:

• Choose higher deductibles if you have the financial resources to do so
• Check to see what valuables you may have as scheduled articles and consider whether or not you would like to incorporate those into the main policy
• Inquire about discounts, such as a multi-line discount for insuring your home and auto with OTIP

When your policy is in force:

• Avoid filing minor claims if you can afford to pay for the damage out of existing resources
• Protect your insurance record and avoid untimely cancellation by paying your premiums on time

Most companies use a replacement cost or home evaluation calculator, which takes into consideration:

• The square footage of your home
• The year your home was constructed
• The type of construction (standard, custom, luxury) as well as building materials used (e.g. frame, brick)
• Features and finishes (e.g. built in dishwasher)

Replacement cost ensures that if you suffer a loss, your insurer will replace the stolen or damaged item with a new one of like kind and quality rather than calculating the depreciated value of the object in question. Simply stated – you receive new for old.

Guaranteed replacement cost refers to the building. It comes into play only if you suffer a major loss – typically, if your house burns down. Insurance policies cover your house and personal belongings, not the land on which it sits. If the appraiser's estimate of the building cost is too low, it may cost more to rebuild your house than the total amount of your policy. "Guaranteed replacement cost," means the policy limit will be exceeded if necessary. Most people know the realty value of their home, but they don't know what it would cost to rebuild, which could be more or less.

A risk is a chance event that is unexpected and accidental as far as the policyholder is concerned.

A broad homeowner policy provides all risks coverage on the building. Your personal belongings are covered on a named perils basis and are insured against direct loss or damage caused by:

• Fire or lightning,
• Explosion,
• Smoke,
• Falling objects, impact by aircraft or land vehicle,
• Riots, vandalism or malicious acts,
• Water escape, rupture, freezing, windstorm or hail,
• Transportation,
• Theft, including damage caused by attempted theft,
• Collapse of building, electricity, or fuel oil escape.

An all risks or comprehensive policy applies to both the building as well as your personal belongings. It describes insurance for losses due to a wide range of causes. Instead of listing each insured peril, such as fire, lightning, and so on, the policy covers all loss or damage to insured property that is the result of any risk that is not specifically excluded.

1. Monthly Pre-Authorized Chequing – join our convenient pre-authorized chequing payment plan which takes an automatic withdrawal directly from your account monthly (a void cheque and authorization form are required).
2. Payment plans by cheque, money order or telephone/Internet banking:
   1. Full Payment Plan – full amount paid upon renewal
   2. Two-payment Plan* – ½ due upon renewal and ½ due within 30 days
   3. Three-payment Plan* – ⅓ due upon renewal, ⅓ due at 30 days and the last ⅓ due at 60 days
   4. Four-payment Plan* – ¼ due upon renewal, ¼ due at 30 days, ¼ due at 60 days and the last ¼ due at 90 days

* Note: When paying by cheque or money order for the Two, Three or Four payment Plan, a $10 service charge will apply to your first payment (post-dated cheques required with initial payment).

If you have any questions regarding your payment options, please call an OTIP service representative at 1-800-267-6847.

Most insurance companies review property claims during the past 5 years. These claims could affect your premium, deductible and/or coverage depending upon your situation.