Ah, the fun-filled world of damage insurance, with all of its amendments and exclusions – not to mention the fine print and confusing lingo. Here are a few questions and answers to help you find your way.
Is it cheaper to purchase car and home insurance from the same insurer?
Overall, you'll save the equivalent of a light meal at a restaurant, or only 5 percent on your car insurance premiums. A second way to “save” – and sometimes save more – is by bargaining with at least three different brokers or insurers.
Will my home insurance premiums go up if I file a claim?
There are consequences – for instance, you won't enjoy the same “reduced” premiums extended to those who have never filed a claim. These reduced rates are in the order of 10 to 15 percent of the premium value. In other words, in the year after you file the claim, you can expect your bill to increase by 10 to 15 percent.
Will my insurance premiums increase if my neighbour's home is robbed?
No, provided that the neighbourhood isn't systematically targeted by thieves. If it is, the insurer may refuse to provide coverage for homes in that neighbourhood. But insurers may also charge higher premiums than they would in a neighbourhood deemed safer.
Does the floor I live on influence the cost of my home insurance policy?
Now there's an urban myth. Whether or not the building is fire-resistant has a much greater bearing on the amount of the premium payment!
Does my insurance cover damages to my cottage caused by a broken water pipe following a cold snap?
If the cottage isn't heated, then you aren't covered. And even if it is, it must be visited on a daily basis if left unoccupied for more than four days or the water must be shut off for the insurance coverage to apply. In fact, this stipulation also applies to the principal residence – if, for example, the occupants fly the coop and head to the Dominican Republic for some sun, sand and surf!