| Frequently Asked Questions
about Insurance |
1.
I recently had an insurance claim for $1000, and I had to pay
$500 of
it myself because that was my "deductible". I thought I bought
insurance
so I wouldn't have to pay for losses myself. What gives?
- The deductible is the amount
that you agree will be "deducted"
from what the insurance company pays when you have a claim.
Therefore, it is the portion of the claim that you have to pay
yourself. Most policies have a minimum deductible that applies.
By purchasing the coverage, you have agreed to the deductible.
Choosing a higher deductible can sometimes help you to save money on your
insurance.
- Why do you have to pay anything at all?
Deductibles help keep premiums down by reducing the cost of
claims to the insurance company thus making insurance more
affordable to most. They reduce the number of small claims, which
are costly to handle for insurers, and which would otherwise result
in higher premiums. Knowing that we have to pay a portion of the claim helps to
keep all of us more conscious of safety and loss prevention.
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2.
We have a 10-year-old sofa in our living room. Last week, when
I sat
down on it, one of the legs broke. Now I need a new sofa. My insurance
company says it won't pay for that kind of damage. Why not?
- Most
insurance policies have clauses which exclude damage
caused by lack of maintenance; rust and corrosion; wear and
tear;
and gradual deterioration - like a worn out sofa. Everything
will
wear out or break down over time. Your insurance policy is
intended to cover unexpected or unforeseen damage. If insurance
policies operated as "maintenance contracts", premiums could
be
so high as to render insurance unaffordable.
3.
What should I do if I have a claim?
- If
you suffer a loss or damage, contact your insurance broker as
soon as possible with the details. At Mardon & Campbell, we
will
take all pertinent details from you and contact the insurance
company that issued your policy to begin the claim process.
After
the initial report, the insurance company will normally handle
your
claim. If at any time you have questions or concerns, as
a valued
client of Mardon & Campbell we encourage you to call us to discuss
them. We are here to help you.
- In
B.C., all auto claims should be reported directly to ICBC on
their Dial-A-Claim service at:
Vancouver & Lower Mainland ................
604-520-8222
Other areas call toll free ...................
1-800-910-4222
4.
Do I have to pay the whole insurance premium at once when I buy
an insurance policy?
- Many of the insurance companies
that Mardon & Campbell
represents offer convenient payment plans. Many plans allow
you
to spread your insurance costs throughout the year by paying
on a
monthly basis. In addition to advising you on the types of insurance
you may require, we can discuss with you payment options to fit
your budget.
5.
I recently bought my wife an expensive diamond ring for our
anniversary. Do we need to buy extra insurance?
-
Residential Insurance policies limit the amount of coverage provided for jewellery in the
event it is lost or stolen. A jewellery rider can be added as needed to the residential
policy to ensure your jewellery is fully covered against theft or if it is simply misplaced
or lost. Another advantage of insuring your jewellery on a separate rider is that most
jewellery riders have a zero deductible. This means that your jewellery will be replaced
without you having to pay for part of the loss out of your own pocket.
When insuring jewellery, it is important to make sure the limit you choose is equal to the
estimated replacement cost of the items including taxes. A recent jewellery appraisal will
help you determine an adequate limit. The limit or "sum insured" shown on the policy for the
jewellery rider is the maximum that will be paid out in the event of a covered loss under
the policy.
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