Canadians have been complaining lately about higher home insurance premiums and lower claim settling satisfaction.
Home and possessions insurance tends to be something we simply renew automatically every year. Only when you have a claim do you find out whether it's worth all the premiums you have paid.
Do some research on the Internet to familiarize yourself with at least the basic terms and approximate cost, and to find out what questions to ask. You can also shop around online. But especially if you are new at the game, consider dealing with an agent and realize cheapest isn't always best.
"This company's policy costs a bit more but they are very reasonable when it comes to settling claims and for small amounts, they even let me do the processing," my agent once told me.
Each renewal, the agent lets me know whether my policy is still the most competitive or whether I should consider switching to another company. I don't mind paying a little extra for this kind of service, as well as advice on some of the lesser-known aspects of coverage.
A vital part of home and possessions coverage is having a record of those possessions - ideally a video but at least photos. Make sure you keep that record somewhere outside the home.
Few of us have receipts for all our possessions, so a video record is important not only to remind you of all the things you own but also to show the insurance company the quality of those items.
Companies know that claimants might be tempted to throw in a few extra items, especially if they can't remember exactly what was stolen or burned. An up-to-date visual record provides simple yet effective evidence that your claim is honest and accurate.
Revise this record every year or so, especially after renovations or a big home improvement shopping spree.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally. Email [email protected]
