melloInsurance

Serving our clients, Serving our community

Lyndon Block

Mandatory Alcohol Screening

During this Christmas season there will be many parties to attend. Whether they are work parties, family gatherings or a New Years Eve party. Whatever the agenda is, it is important to always plan a safe ride home.

Effective December 18th, 2018, New legislation has passed – Bill C46 – which allows law enforcement to conduct mandatory alcohol and drug screening tests. This means that if you are pulled over or are pulled into any random check stop across the country, a police officer can demand a breathalyzer test be taken even if the motorist has no signs of impairment. Prior to this bill being passed, an officer had to have reasonable grounds to pull you over.

Provincial legislation had also changed the impaired driving legislation limit to .04 back in 2017. This meant tougher penalties for a lower legal limit. Penalties such as having your vehicle seized for up to 3 days, attending an impaired driving education program and possibly having your drivers licence suspended. There is a zero tolerance for drivers under the age of 21. The criminal offence still is effective at .o8. For more information on impairment penalties, please click here.

Also, to help with the prevention of impaired driving, effective December 14th, 2018, Ride sharing companies such as Uber & LYFT are now available. If you choose to be a driver for one of these programs, you may need to upgrade your drivers license and amend your personal auto pak to a commercial auto pak to extend coverage properly to this ride sharing operation. Please contact your broker for more information or a quote on these coverages.

We want you to have a safe and Merry Christmas and Happy New Year. Please enjoy the holidays with your family and friends.

 

 

 

 

 

Is there a reason I have identity theft coverage?

Remember a couple weeks ago when we spoke about the importance of having someone checking your home while away on that warm vacation that you “won” by taking that telemarketer survey?  Well, unfortunately that trip resulted in having your information getting stolen and your personal identity being compromised. Credit cards were forged and now you have charges in your name that shouldn’t be there!  Why oh why was that telemarketer so convincing? Now you are sitting in a world of hurt and anguish, you are confused and have misplaced emotions, and wondering how you will escape the clutches of this unfortunate event.  You grab your favorite blanket, lay down on the sofa and proceed to have yourself a good cry as you wonder what to do.


Suddenly it dawns on you and you stop your panic.  The clouds of broken trust and fear begin to roll back with the glorious blue sky and warm sun shining down on this situation.  You remember that your insurance provider has got you covered! Most companies offer a minimum of $10,000 of identity theft protection that will help you get your life back in order.  This coverage will kick in to cover the costs of getting new documents produced, as well as kick in to cover unauthorized credit card charges that might exist. This coverage can be used any time you suspect that your identity has been compromised.  The claims process is started simply by contacting your broker who will open up a claim on your behalf with your insurance company. Submitting a claim for this type of loss may cause a change in premiums due to discounts being affected, so be mindful of that fact if you should decide to pursue this option.


Identity theft protection.  Who knew you would ever need such a coverage?  Your broker did that’s who! Once this whole disaster blows over and what was lost has been returned, make sure you take the time to thank your broker and maybe even bring them that Iced Cap that they love so much.  Brokers know that they often look like the hero, but deep down they are just regular people that want to help and see your problems through.

No matter what happens in the future, keep your broker close.  You never know when you will need them to help you out of the proverbial hole you find yourself in!

 

I’ll have a blue….blue….blue skies vacation?

It is officially that time of the year again where the thermometer never rises as high as we like, and things like wind chill are deciding factors on what outfit we will choose for the day.  The sun seems to remain hidden for longer than we like, and the malls begin to get busier and busier until Christmas. Families begin to plan schedules for the holidays, and that free trip to a warmer climate that the telemarketer promises after stealing your identity seems to look like a more attractive offer all the time- I mean, after all, is a little bit of identity retention worth this kind of cold?  Fourteen days in the sun couldn’t sound more glorious at a time like this!

A few days away from home is something we all desire, but are there ramifications with your insurance if you choose to spend some time away?  Well, lucky you asked, as this is the very place to find out the answer to that very question.

If you plan to be away for more than 72 hours in the winter time, there are stipulations tucked into your home insurance product that state the importance of having a competent person checking on your home at least once a day to keep all coverage in place.

You see, the last thing the insurance companies want is for someone to leave their home for a number of months in the heating season and simply trust that their furnace will continue to work without being checked on.  Even with smart homes and remote temperature monitors being available, they still want little Johnny stopping by to make sure the pipes haven’t burst due to a furnace malfunction, and that everything remains in proper order.  Having someone stop in also ensures that an unfortunate event, such as the “wet bandits” stopping by for some free merchandise, hasn’t occurred (forgive me for the Home Alone reference). Things like theft, vandalism or accidents such as a broken window can cause big problems in the middle of winter.  Your furnace will have to work harder to keep the house warm, and there is no guarantee that it will be able to do that with a broken window in the house, or that it will continue to operate under increased load without malfunction.

Some home security companies install thermostats that they can monitor the temperature remotely. If the temperature of the home drops, they will send someone to inspect the home to see what has caused the issue. This is another alternative if you are unable to find someone you trust to check on your home. Most insurance companies allow this as an alternative if the “temperature of the home is monitored by a third-party vendor.” Please check your home wordings or ask us if your company allows this alternative.

This winter, if you should be so lucky to be heading away to bask in the warm sun for a few days, make sure to have someone checking into your residence daily.  It will keep your coverage in full force, and could mitigate a bigger loss if your “home-checker” stumbles across something unplanned or unexpected.

 

This is a time to Remember.

Next Monday, the day will revolve around the 11th hour of the 11th day of the 11th month of the year.  I recently asked myself what the meaning around 11/11/11 is, so I took the time to look it up and get educated on the significance of the time chosen to remember.

The Armistice Agreement was signed on November 11, 1918 at the 11th hour of the day.  This agreement marked the beginning of the end of a long horrific war that cost many lives.  The agreement outlined some terms for the cessation of acts of war, and named Germany as the defeated enemy of war.  According to online sources, this is what was named in the agreement:

“The actual terms, largely written by the Allied Supreme Commander, Marshal Ferdinand Foch, included the cessation of hostilities, the withdrawal of German forces to behind the Rhine, Allied occupation of the Rhineland and bridgeheads further east, the preservation of infrastructure, the surrender of aircraft, warships, and military materiel, the release of Allied prisoners of war and interned civilians, and eventual reparations.”

This was a big step towards peace, freedom, and prosperity for the developing world.  The war formally ended on June 28, 1919 with treaties being signed in Versailles.  

At this point, you are likely wondering “Why is Block’s Agencies giving me a history lesson on an insurance agency blog?”

There are two reasons for the lesson- the first and foremost is to remember, and to never forget the fallen soldiers and their sacrifices they made and the important events in history that shaped what the world is today, and the second reason is that there is an applicable parallel to be drawn between the two events.

Utmost Good Faith

The Armistice Agreement and insurance both have a very similar foundation that they are built on.  That foundation is comprised of two components- contractual laws, and the trust it takes to see them through.  When the Armistice was signed, it was done so in good faith.  The paperwork was an expression of the intent of the leaders at the time to disarm, protect infrastructure and begin the release of prisoners of war, however the paperwork is just that – paper!  What followed was action and resolve to complete the work.  Nations ended hostilities, generals ordered the lowering of guns, and prison cells were opened.  This of course was all done because of the agreement, but one couldn’t happen without the other.  A parallel is drawn to insurance through the realization that when you sign an insurance application, it becomes a contract.  The only time you get to see the realization of that contract is when something goes wrong and you need to make that call to start the process of making things right.  This of course requires the second component to any agreement. Trust.

Trust

It’s the second component to the Armistice, and dare I say the more important component of the two.  Trust is what actually began the work of disarming nations, of opening cells, and repairing the damage of war.  To release prisoners, you need to trust that they will not turn on you the moment they are freed.  Again, similarly to insurance, you need to trust the company that underwrites your insurance to carry out the claims process as promised and to honour the contract that was set out in the wordings of your policy.  The insurance carrier is also trusting you, that in the event of a fire or theft that you are declaring actual goods that were lost. The good news is that trust comes easier with your insurance provider, as they are there to help, and are not there as your enemy.

This week we remember the fallen, and the price paid for our freedoms.  We are fortunate we can learn from our ancestors in a few different way: making peace is just a decision away, trust is a choice, and contracts require action. Let us never forget.

Why do I need liability coverage?

What amount of liability insurance is adequate?  Why do home insurance limits start at $1,000,000? Why does my broker encourage a minimum of $2,000,000?   Aren’t these numbers just a little bit ridiculous? After all, I’m not going to get sued….

These are all very good questions and they are questions that we as brokers get asked quite regularly.  Typically property owners are a little confused over what liability insurance actually provides and when it would ever be used.  So, in this week’s blog we will look at some basic “Liability 101” scenarios so that you can hopefully understand a little more clearly what you are purchasing.

Liability insurance covers damages sustained to a third party’s property as a result of negligence.  This means that liability coverage only extends to things which are accidental in nature. The very definition of negligence in insurance context is “committing an action that a reasonable person would or would not do.”  This means that willful damage to a third party’s property is not covered, nor is there liability coverage for criminal activity, or conducting an activity that is inherently dangerous…. Which one could argue is something that “a reasonable person would not do.”

So, a couple practical examples might help with breaking this down further:

Example 1

You are in a hurry to leave for the weekend.  You leave the house in a rush and as a result you leave the coffee maker on.  In the middle of the night, said coffee maker shorts out, which starts a fire.  Your house burns down, and melts all the siding and seals on your neighbor’s house and windows.  The damage to your neighbor’s house? Well your liability coverage would pick that up! After all, the damage was your fault in this scenario, so why would your neighbor make a claim under their policy?

Example 2

You are driving your car at night.  You are a little sleepy – so your reflexes are a little slower than normal, and when they do kick in, they are exaggerated.  Driving along you think you see a deer running up the ditch on your right. Out of reflex you swerve to the left, but there is an oncoming car.  The oncoming vehicle swerves to miss you and in doing so, hits the ditch and collides with a telephone post. The resulting damage to the oncoming car?  Covered by your liability insurance! After all, your actions are the reason for the other car to be in the ditch, right?

Example 3

You are having a Roman Candle fight with your neighbor in your front yard, and instead of aiming your firework at your neighbor, you start shooting them at his home.  One of the fireworks gets under the vinyl siding and causes extensive damages to one side of his home. The verdict? NOT COVERED. The reason? The argument could be made first of all that you are doing an activity which is inherently dangerous.  Secondly, the argument could be made that since you were aiming your firework at the home, it could be said that it was a willful action to damage the property.

As for the values of liability coverage, it’s easy to justify the limits once you realize the types of losses that need to be covered by liability.  Once you start factoring repairing neighboring homes, or vehicles along with injury payments, it can get pricey!

Next time you are reviewing your policy, remember these examples, and consider the limit you carry.  Do you have enough coverage? For as little as $20 per year, you can upgrade your policy limit from 1 million to 2 million. Higher limits are available if required, please contact your broker for more information.

 

Why is my neighbours hail claim being handled differently than mine?

Summer in Langham 2018 – July 7th to be exact, will be a storm to remember.  How do I remember the date? Well, when you fill in the same form over 300 times with the same date, it turns into “clockwork”.  What form was I filling out? A property claim form reporting the hailstorm damage to homes, cars, trailers, and sheds which notifies the insurance company of the losses sustained through the storm.  

Hail claims are about as much fun as getting your teeth pulled! You suffer damage to your property, due to a storm you didn’t ask for, you then have the privilege to talk to an adjuster – who may have not had his coffee yet; and in the end, your neighbour John, got his full roof replaced, and you only got one slope done!  

Did anyone feel some emotions reading that? When it comes to an insurance claim we set our expectations a certain way. Sometimes we expect no settlement, and other times we expect the world, because that is what our friends or neighbours received. However, emotions can take the logic out of the equation and there are some questions to consider:  

Question #1- Are all houses created equal?  That’s a big negatory Tomahawk!

Question #2- Are all insurance policies created equal? That is a negative as well.

Question #3 – Are all insurance companies equal? They try! But no, they handle things slightly differently to set themselves apart.

Just like homes, insurance policies are not created, designed or worded the same.  Some houses are more elaborate, some have high end components, and some have basic ones. Some are old and some are new. Some homes are big, others small, some short and some quite tall!  Now before I turn this into a Dr. Seuss children’s book, I’ll draw the line of comparison.

Insurance products are also quite different from each other, and they all carry different clauses and benefits. While one policy promises to color match and wrap an entire home for partial damages, another will only repair what was actually damaged, even if the colors can’t be matched 100%. Some companies will pay for the replacement cost of your shingles right up to their expiration date, while others only allow replacement cost coverage for the first 15 years, then the coverage changes to the actual cash value from that point forward. Of course, these differences are comparable to the quality, square footage, slope and stories of your home which in the end affects the price tag. If you want the size, the quality and the finish of a luxury home, you will pay for it. Likewise, if you want the luxury of longer replacement cost coverage terms and color matching coverage, it comes at a higher price.

Every item you buy has a corresponding price tag. The better the quality of the home build, the higher the cost.  The same coincides with insurance products, and we really can’t expect anything different. The quality of settlement you receive in the event of a claim directly coincides with the coverage you buy.  You want the full meal deal you’ve got to pay for it.

The days of a simple “easy-to-read” insurance policy is no longer, and to read the fine print of each one individually is nearly impossible. To find out what type of policy coverage you have purchased or if you have questions, talk to your broker. They will be able to tell you if your policy is the equivalent to a Cathedral Bluffs mansion, or if you are more in the 350 square foot cabin range.  Whichever you prefer, it’s important to be informed and to know what you have – that way you can decide to make a change/upgrade or at least it will manage your expectations when the hail hits, and you’ll have a less frustrating time in settling your claim.

Our job is to assess the risks to your home, and then to give you a policy that fits your needs and your budget. Every person has different requirements when it comes to insurance. They need it because the bank says they need it. They want the best coverage because it is the biggest investment of their life. Maybe the person is really handy and can fix most things, so he needs less coverage because he won’t ever put in a claim. Every person/home is different. However, this is just a scenario to show that what you pay for can directly translate into what type of coverage you end up having. Please call us if you want to learn more or would like to make changes to your policy.