Resources

Community Involvement

Birkett-Hassard Insurance is pleased to contribute to the following local organizations in our community:

FAQ's

If you need more information, e-mail us your questions at info@bhinsure.ca.   Click on the topic that you would like to see FAQ for:
Auto
Commercial
Farm
Property
Recreational

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Auto Questions

1.  Price vs Product

Why is there such a difference in price between companies. Anyone who owns a vehicle knows they must carry auto liability insurance. Auto Insurance is regulated by our Provincial Government and you could say that each policy is the same as the next. This could not be further from the truth. We at Birkett-Hassard Insurance choose the provider of your insurance carefully based on financial stability, claims satisfaction and our ability to negotiate with them on your behalf. There is some truth to you get what you pay for.

2. Mandatory vs Optional

In Ontario it is mandatory to carry a minimum of $200,000 liability coverage on your vehicle. This coverage is relatively inexpensive to purchase and completely inadequate in our opinion. This coverage includes third party liability (if you are sued for property damage or bodily injury), accident benefits (injury to you or your dependents), direct compensation (damage to your vehicle in a not at-fault accident), uninsured auto.

Optional coverage is increasing your liability to a recommended minimum of $2,000,000, Collision (damage to your vehicle in an at-fault accident), Comprehensive (fire, theft, vandalism, flying object), Loss of Use (coverage for a temporary replacement vehicle), Coverage for Non-Owned auto, family protection, increased accident benefit, accident forgiveness, to name a very few.

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3.  Deductibles

Deductibles are your contribution to a claim before any payment is made by the insurance company. Your deductibles are set out on the Declaration page of your policy. These usually apply in the event of an at-fault collision, comprehensive, uninsured auto, hit and run or unidentified third party claim. Increasing your deductible can reduce your premiums.

4.  Drivers Training

Driver's training courses must be approved by the Ministry of Transportation to qualify for a rate reduction on auto insurance. This training course usually only applies for the first three to five years of licensing. Your premiums may be reduced by as much as 50%.

5.  What's covered, what's not?

• If I'm driving down the road and my engine blows, am I covered? The answer is no. Maintenance and repair are not insurable losses and these costs must be borne by the owner of the vehicle.
• If a deer jumps out in front of my vehicle and is hit, is the damage covered? If you carry comprehensive coverage and you can prove the damage was a result of a deer, it is covered. If you swerve to avoid the deer and damage your vehicle running into the ditch, this is an at-fault collision claim.
• I come out from shopping and notice someone has hit my car. There are no witnesses and no note. If you carry collision coverage, you can make a claim, subject to your deductible. Most companies will not regard this as an at-fault collision claim.
• If I rent a private passenger car in England, am I covered? No. If you carry OPCF 27 (Coverage for Rental Vehicle) you may have coverage only in Canada or the United States. CHECK WITH YOUR BROKER.

6.  What affects the price of my auto insurance?

Many factors affect your premiums such as your age, gender, where you live, where you commute to, vehicle use, accidents, tickets, license suspensions, years licensed, number of drivers, vehicle you drive, coverage limits and deductibles, optional coverages, to name a few.

7.  Who can drive my car?

You can lend your vehicle to anyone holding a valid drivers' license who is not specifically excluded from coverage under your policy (OPCF 28A). Having said that, you are in turn responsible for any claims or accidents they are involved in while driving your vehicle. Their accident is your accident.

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Commercial FAQ's

1.  Why do I need commercial insurance?

The purpose of commercial general liability insurance is to protect the corporation and/or principles of the business from losses such as bodily injury or property damage. Commercial policies contain many exclusions and thus seeking the advice of a professional broker is key in securing proper insurance coverage.

2.  Home Based Business - Doesn't my homeowners insurance cover everything?

Personal insurance policies specifically exclude coverage for property and liability in connection with business activities. Some home based businesses can be covered with an extension to your existing home policy.

The following is a small sample of the types of insurance extensions available:

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Farm FAQ's

IF YOU NEED MORE INFORMATION, E-MAIL US YOUR QUESTIONS AT info@bhinsure.ca

1. Actual Cash Value v. Replacement Value

Actual Cash Value is the value of the building, after depreciation is applied. This type of insurance would require the insured to contribute in some form to the repair of the building. Replacement Value is the cost of replacement of a building with like kind and quality materials and workmanship without depreciation.

2. Co-Insurance

Co-Insurance is invoked on a partial loss. It is the requirement to insure the property to a certain percentage of its replacement value. For example if there is an 80% co-insurance clause, the policy requires the item insured carry insurance to a minimum of 80% of its replacement value. If the insured chooses to underinsure their property, the following formula is applied:

Replacement value: $500,000
80% value: $400,000
Insurance carried: $350,000
Loss: $200,000
Insurance Co. pays: $175,000

In the event of a total insurable loss, the full insurance carried would be paid.

3. Business Interruption Insurance

Business interruption insurance protects against losses resulting from a temporary shutdown because of an insured peril. Generally, business interruption insurance provides reimbursement for lost net profits and necessary continuing expenses.

There are various types of business interruption coverage available. A business interruption policy that includes extra expense coverage in case you have to carry on business at a different location because of insured damage at your original place of business can be a wise business insurance investment.

4. Livestock Coverage

Coverage can be carried for a variety of perils resulting in death of the animal, for example, fire, wind, lightning, impact by vehicle, entrapment, casting, colic, tuberculosis, even power interruption.

5. Fuel Tanks

Please view the following link with respect to risks and prevention of fuel oil losses. Oil Tank/Fuel Safety

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Recreational FAQs

1. Do I need insurance on my boat?

Property insurance policies provide limited coverage for lower horsepower boats and may vary from company to company. Generally speaking boats with an engine over 10 hp require an endorsement to the policy. Costs increase with the horsepower. You can also purchase coverage for damage to your boat. Speak with your broker to discuss the optional coverage available.

2. Do I need insurance if I only drive my snowmobile/atv on my own property?

Property insurance policies generally exclude liability coverage for any motorized vehicle. Regardless of whether you are on your property or not, a situation may occur where there is bodily injury or property damage to others. Your property policy would not respond and therefore would require coverage under a snowmobile/atv policy.

Property FAQ's

1. What are "special limits" in my policy?

Each property policy contains a section which limits the amounts paid out for certain items. For example, most policies limit the amount of jewellery, cash, silverware, furs, sports equipment coverage, to name a few. Check your individual policy for limits or contact your broker.

2. Does my child who attends school away from home have coverage?

Most insurance policies contain a clause providing limited contents coverage for students who are living away from home. Again, check your policy wordings or contact your broker.

3. Why is there a deductible?

A deductible is the amount that you have agreed to pay towards the cost of each claim you make and can reduce your premium costs. Your insurance policy is meant to cover financial losses you would be unable to afford otherwise and a deductible prevents the insurers costs in settling small claims.

4. What coverage do I need for my Condo? Don't my monthly condo fees cover my insurance?

Each condominium corporation may handle insurance differently. In most cases, they insure the "standard unit" which would be defined in their contracts. Normally this would include the originally constructed unit before upgrades or improvements. Therefore, it is up to each individual unit owner to insure the cost of upgrades, improvements and the contents of their condominium unit.

5. Why do I need tenant's insurance?

You may tell yourself that the contents of your apartment are not worth insuring, just a few hand-me-down pieces of furniture and clothes. If something happens, I can afford to replace it. However, if you are the cause of damage to the building you rent or cause smoke or water damage to other apartments, this is where it can become costly. Liability insurance coverage, which is purchased in connection with contents insurance will provide you with peace of mind in the event of a loss.

Helpful Links

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