1. What is “no fault” insurance?
Answer: This is a term that can be very misleading. It does not mean that that an insurance company will allow forgiveness if you cause an accident. The “no-fault” automobile insurance system basically means if you are injured or your car is in an accident, you deal with your own insurance company, regardless of who is at fault.
2. What do I do if I am in an automobile accident?
Answer: The first step is to stay calm and make sure that any other passengers are not injured. If there is personal injury or the damage to your vehicle is over a $1000, you must notify the police. Write down all of the necessary information such as:
- Date and time of accident
- Location of accident
- How the accident happened
- Damage to your vehicle
- Other driver(s) involved
- Investigating police
- Witnesses Contact your broker to pass along the above details and to get further direction
3. What type of losses is not covered under a home insurance policy?
Answer: There are a number of perils that are not covered under a home insurance policy. Some people may not realize that a home insurance policy is not a maintenance contract. House insurance is intended to cover unpredictable events that are sudden and accidental. Here are a few of the key exclusions under a home insurance policy.
- Flood – Water damage arising from a flood is not covered. Water damage from a burst pipe would be covered in most circumstances.
- Earthquake – This type of loss is generally not insurable.
- Business Activities – Home insurance is not business insurance. There is certain incidental business activities covered such as babysitting three or less children.
- Freezing of Indoor Plumbing – This is usually regarded as being preventable. If you are away from your house during the winter season for more than four days, you must have your home checked by someone every few days depending on the policy wording.
- Mould or Fungi – Mould or fungi damage is excluded unless caused by a covered peril.