An annual insurance review can help Canadian homeowners and drivers keep their coverage aligned with real life. Most people only think about insurance when a renewal arrives, a payment changes or they need to make a claim. By then, an outdated limit or unreported change may already create complications.
Your home, household, vehicle use and belongings can change significantly in a year. A short insurance checkup gives you an opportunity to ask questions, understand your deductibles and identify information your broker or insurer should know.
The Insurance Bureau of Canada recommends evaluating home insurance coverage every year, including recent renovations, upgrades and major purchases.
An annual insurance review helps keep home and auto coverage aligned with changes in your everyday life
Your home’s selling price and its rebuilding cost are not the same. Market value can include the land, neighbourhood, lot size and local real estate demand. Rebuilding cost focuses on what it could cost to reconstruct the home following an insured loss.
That calculation can include:
Construction and labour costs can change over time. Renovations may also increase the amount required to rebuild your home.
Contact your broker if you have:
AIM Insurance can help you review your current home insurance coverage and determine what information should be updated.
A deductible is the portion of a covered loss that you are responsible for paying. Choosing a higher deductible may reduce your premium, but the amount should still be manageable if something happens unexpectedly.
Ask yourself:
Do not choose a deductible based only on the potential premium savings. Consider what you could realistically afford during an already stressful situation.
It is easy to underestimate the cost of replacing everything inside a home. Consider the combined value of your furniture, clothing, electronics, appliances, tools, sports equipment and everyday household items.
Pay particular attention to recent purchases such as:
Some policies contain special limits for certain categories of property. Expensive jewellery, bicycles, collectibles, tools or business equipment may need to be listed separately or insured through an endorsement.
Create a basic home inventory with photographs, model numbers, serial numbers and receipts where possible. Store a copy somewhere you can access even if your home or computer is damaged.
Liability coverage can help protect you when you are legally responsible for injuring someone or damaging another person’s property, subject to your policy’s terms, conditions and exclusions.
Everyday situations can include:
Home and automobile liability are separate coverages. Review the limits on both policies and ask your broker whether they remain appropriate for your household, assets and activities.
Water damage is one of the most frequently misunderstood areas of home insurance. Different sources of water may be treated differently, and not every form of water damage is automatically included.
Ask your broker:
The Insurance Bureau of Canada explains that sewer backup and overland-water protection may be separate forms of coverage. Availability, definitions and limits can vary by insurer and location.
Even if you decide not to change your policy, knowing what is and is not covered can help you make informed decisions before a storm, flood or backup occurs.
Auto insurance coverage is based partly on how, where and how often a vehicle is used. Your policy information should reflect your actual routine.
Contact your broker if:
Do not assume a personal auto policy automatically covers every type of business, delivery or rideshare use. Depending on the activity, different coverage or an approved endorsement may be required.
Households change, and those changes may affect auto insurance. A new driver, additional vehicle or household member with regular access to your car should be discussed with your broker.
Review your policy if:
Insurance Bureau of Canada guidance notes that family and household members are not automatically listed simply because they live with you. Regular drivers should be disclosed to the insurer.
You do not necessarily need to change insurance companies every year. The more important step is making sure your information is accurate and that you understand the coverage you currently carry.
Consider contacting your broker after:
A quick annual insurance review can help identify outdated information, unclear deductibles, potential coverage gaps and questions worth addressing before a claim occurs.
AIM Insurance can review your home and auto coverage, explain your options in straightforward language and help ensure your policy information reflects your current situation.
Let’s have a conversation. Call 1-877-246-4869 (877-AIM-4TMW) or contact AIM Insurance online.
Review your policies at least once a year and whenever your home, vehicle use, household or financial circumstances change. You do not have to wait until renewal to report an important change.
No. Market value can include land value and local real estate demand. Rebuilding cost estimates what it could cost to reconstruct the insured home using comparable materials and current labour costs.
Contact your broker before beginning a major renovation whenever possible. Renovations can change rebuilding costs, create construction-related risks or require different coverage while work is underway.
Discuss it with your broker, particularly if you operate a home-based business, meet clients at home, store inventory or equipment, or use your vehicle for work. Personal policies may limit coverage for business property and activities.
Tell your broker when a household member obtains a learner’s permit or licence and may have access to household vehicles. Your broker can explain when the driver must be listed and how the change may affect coverage.
This article provides general information only. Coverage, limits, deductibles, eligibility and exclusions vary by insurer, province and individual policy. Speak with a licensed insurance professional about your circumstances.
