melloInsurance

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Insurance

Who should handle my insurance? Broker? Bank?

Every homeowner has been there.  You are sitting across the desk from your mortgage provider signing an endless mountain of forms and papers for that new place you look forward to calling “home.”  You are flipping through the pages and somewhere in the stack will be a form asking if you would like to purchase property insurance through the bank, and they promise that it will be as easy as 1,2,3.  However, you are hit with a moment of hesitation that asks “is this the best choice?” Rattling in your brain, between the regions of convenience and responsibility, the argument ensues – “Do I just sign the form to get it over with, or should I check my options?”  This existential conflict leaves you in limbo for a few moments while your pen hovers above the line. Suddenly your train of thought is derailed by that oh-so-pleasant bank employee asking you if you would like to purchase home insurance through the financial institution.

Should I?  Should I not?

Of course there will be no surprise at my bias when the recommendation I give is to refrain from signing.  Why? Well, a couple reasons really.  First of all, I am reminded of the wisdom my parents shared with me which encouraged me to shop around, and to not take the first offer in any deal.  All too often a person can save money and find better value by being patient, looking, and doing some due diligence. I know what you are thinking: “Shopping around my insurance is a huge pain, and I just want to get it over with!” This leads me to my second point, which is – Do you think it is a coincidence that the banks are asking you to purchase insurance products in a quick moment like that? No, banks know what they are doing, and they know that the best chance to gain your insurance portfolio is to offer it on the spot, in the moment when you are feeling the excitement of the deal, and the desire to avoid any further work prior to possession.  I would encourage you not to play their game. Not to take away from a banks credibility in handling your finances, they just haven’t been in the insurance industry long enough to know how to handle your insurance portfolio.

In my career as a broker, I have seen many customers come to me with insurance documents issues from a bank.  They are frustrated that their mortgage officer can’t answer their insurance questions, and when they push for an answer they get redirected to a call-centre.  Further, when it comes time to add that new boat or ATV or some other item, to a policy, the recurring answer I have heard people get is that they need to insure those items elsewhere.  In short, the transaction of taking your premiums is made easy, while getting the service on what you have purchased is not so easy.

With an insurance brokerage you have a dedicated person that is there to talk about your insurance needs.  They are a licensed individual that is familiar with many insurance products, not banking products. An insurance broker has a vast array of insurance products that can cover most, if not all, of your insurance needs.

The clincher though? Brokers carry E&O insurance.  This means that if a mistake was made on your policy, or if there is an omission of coverage, a broker has insurance backing the transaction so that an error can even be covered from time to time.

Brokerage or Bank? It’s your choice, but now you know a few more reasons why to consider a brokerage.  Don’t let the bank pressure you. You are in the driver’s seat of your insurance needs. Grab the wheel and make the choice that is truly best for you!

Fire Fighting

Living in Saskatchewan exposes us to a wide range of weather conditions, including hail, wind, extreme heat, rain, snow, and ice. When these elements combine, it often leads to unavoidable disasters.

A few years ago, Northern Saskatchewan faced severe forest fire situations due to a dry spring and constant wind. This year, British Columbia is also struggling with a wave of uncontrollable forest fires. We express our gratitude to the brave firefighters and volunteers who risk their lives to combat these fires.

During the fall, particularly around harvest time, the ground, grass, and crops in Saskatchewan tend to become dry. With the dry vegetation and warm weather, the conditions are ripe for potential grass fires. Whether you’re working in the fields, having a campfire, or engaging in any outdoor activities, it is essential to keep a fire extinguisher nearby. Having this precautionary measure readily available allows you to extinguish any initial sparks, which can significantly reduce the risk of a fire.

In the event of a fire, it is crucial to ensure you have appropriate coverage on your insurance policy to protect against potential losses. If you reside in an urban area, it is advisable to check with your village, town, or city to determine if your taxes cover any fire department charges that may arise from attending a fire for which you are responsible. For those residing in rural areas, the local fire department will respond, but you will likely be responsible for the costs associated with their deployment and firefighting efforts. In cases where you live near multiple Rural Municipalities (RMs), towns, or cities, multiple fire departments may be involved, resulting in substantial service fees. For instance, a single fire department’s call-out fee can amount to $1200 or more, with additional costs of $800-$1000 per hour for firefighting operations.

To protect against these potential expenses, you can consider purchasing “Volunteer Fire Fighting” coverage on your home or farm policy. Some insurance companies offer coverage limits of $2000, $5000, or $10,000 for this purpose. We strongly recommend consulting with us to ensure you have this coverage and that it is adequate for your specific area. It is also advisable to contact your local RM office to understand the firefighting costs in your vicinity and the coverage amounts commonly carried by residents. Depending on your location, it may be prudent to have a minimum coverage of $15,000-$20,000 to guarantee sufficient protection.

Should you have any inquiries regarding this coverage or require further assistance, please do not hesitate to reach out to one of our insurance professionals.

Be prepared for this years Harvest

With the warm weather comes a ripening crop. We are approaching harvest very quickly, in fact there were some combines out in the field already.

Every harvest has potential risks, and we need to make sure that those risks are either managed properly or that you have coverage in place to protect yourself in the event of a loss. First of all, with the warm weather and dry stalk, there is a potential fire trap in the combine. From the risk management side, you should have a fire extinguisher nearby at all times, and a water truck on the field, wouldn’t be a bad idea either. As for insurance, please review your equipment list with us and look over the values on that equipment, to make sure it is up to date. We would hate to have a loss and realize the equipment wasn’t listed or it was underinsured.


It  is important to make sure you have loss of use coverage on your policy for your machinery. Loss of use coverage is money you can use for a rental, if your equipment has had an insurable loss. For example: You have an ingestion claim on your combine that has resulted in damages of $25,000. The ingestion damage is covered under your insurance policy on your combine, however, you need another combine to continue with harvest while this is being repaired. If you have loss of use coverage of $10,000, you can use this coverage to rent a combine during the time your combine is being repaired.  There are different limits you can buy, we used $10,000 as an example. Please contact our office if you would like to add this coverage or more information on it.

If the conditions were right this year, you may have a bumper crop. Once that crop is in the bin ready to be transported; we need to make sure that your investment is covered. Insuring your threshed grain should be a priority to prevent losses due to theft, fire, windstorm, and upset and overturn during transportation. Your grain should be insured to a minimum 80% of replacement value to avoid co-insurance.
Today’s bins are getting larger and more complicated. With automatic bin sweeps, aeration fan systems and other technology; we need to properly insure these structures. For risk management, we would  suggest anchoring down your hopper bins to make sure they are secure, even if there is or isn’t grain in the bins. This will also result in a rate reduction for the insurance premiums on those bins. With all of  the fixed equipment in the bin, “equipment breakdown” coverage will help cover losses due to a sudden and accidental mechanical failure. And again, when insuring the bin, we should insure it for the replacement value, that way if there was damage due to fire, wind or collision from moving machinery, you are eligible for full value of the bin if replacement or repairs are needed.

The old farm saying is, the season is not over until the grains in the bin. Some might say until you have a cheque in your hand. There are a lot of variables on the way, and if we can protect your investment through that process, you will sleep better at night.

Saskatchewan Summer Storms

In the Province of Saskatchewan, wind is a part of everyday life. However, the frequency of the recent storms we’ve been having, are not. These storms have brought tornado warnings, plow winds, hailstorms and torrential downpours. With these severe risks, we need to make sure we are properly covered so that if one of these events hits us close to home or by the lake, we are properly covered.

Most basic insurance home policies include the wind and hail perils automatically, but there are some coverages that may be available to top up your policy. An insurance company  is responsible to repair or replace the damage to your house. If hail and wind damage one side of your dwelling, they will fix that side. However as siding and shingles age over time, the new material may not match the remaining three sides that were left undamaged. SGI Canada has a Prestige policy which removes this “obsolescence clause” to help cover those remaining 3 sides to make sure your house goes back to the way it was designed to be. This is normally not covered under most home policies. There are some requirements to qualify for Prestige coverage, so please contact our office if this would interest you.
With these thunderstorms, there may be a lot of water that comes with it. MMFI, SGI Canada and Wawanesa have created Flood/Water Protection coverages to help protect you from a flooding situation. This never used to be covered, but now you can buy this new coverage. Insurance companies also recommend installing automatic sump pumps and backwater valves in your main sewer line to prevent water claims. These preventative measures may result in a potential discount on your policy. The rates/eligibility will vary depending on your location; but with the recent flooding in Lloydminster, Calgary, High River, it may be worth looking into. Contact us to see what’s available for you.

As for your vehicles, it is important to always carry a package policy. The main reason is to carry a higher liability limit in case there was ever an injury or serious collision. The other reason is to have a reduced deductible in the event of a loss. Some of the plow winds up north have caused a ton of damage to people’s campers, trailers, boats and their trucks and cars. If you had to pay a $700 deductible for each of those losses, it would end up being quite expensive, but if you have a package policy, your deductible can be as low as $50 for that type of situation. Please ask us about an auto pak policy to help make an auto claim a little bit easier. These extension policies will also cover the vehicle and trailers during the winter months while they are in storage. For as little as $5 a month for a cabin trailer policy; it is worth looking into. Give us a call so we can help you out.

Summer storms can be volatile and you need to be prepared in the event that a storm occurs near your house or while you’re on vacation. If you have any concerns or questions, don’t hesitate to contact our office.