"Passion for Protection" Insurance Broker Blog

Insurance Fraud ... Be very AFra"u"d

2012-01-06T11:12:00.000-05:00

There has been a lot in the news recently about the cost of insurance in Ontario. Immediately I started seeing articles with many truth's peppered throughout the article filled with media hype and finger pointing. One thing that is true is that insurance fraud is costing all Ontario insurance customers a lot of money. Insurance Brokers have been talking about this for a long time and working on solutions. Hopefully the most recent press will help draw attention to... and solution for the insurance fraud problem.

Below is a recent article by Deputy Senior Vice President of Claims for Intact Insurance, Sharon Bridge, regarding insurance fraud. Intact is one of the many insurance companies with whom Rhodes & Williams Insurance Brokers can place insurance, if it is the best choice for our clients.

Detecting Insurance Fraud Controls Claims Costs

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Deputy Senior Vice President, Claims Sharon Bridge explains why and how Intact Insurance, the industry and the Ontario government are working together to reduce abuse of the claims system.

With catastrophic weather events on the rise – like April’s severe hailstorms in Thunder Bay and Stratford, wild windstorms in the Ottawa and Niagara regions and Goderich Tornado – the last thing consumers need is added costs due to increased auto insurance fraud. But that’s exactly what’s happening in Ontario.

“Auto insurance fraud has been on the rise, particularly in the GTA,” says Sharon Bridge, who’s been leading Intact’s claims transformation in Ontario over the years. “The previous accident benefits system led to the prevalence of increased abuse committed by various parties involved in the claims process and increased the cost of injury claims costs. These trends adversely affected consumers as premiums rose.

”Abuse and fraud is an issue that affects the cost of protecting people, so we’re tackling it head on. Our proactive approach to fraud management involves investing in people, technology and infrastructure to help manage, detect and prevent fraudulent or improper activities. It’s an approach that we developed with the customer in mind. Putting the customer at the centre of everything we do is what the Intact Insurance brand is all about and these actions help us get customers back on track as quickly as possible by ensuring that they get the right kind of treatment by the right practitioners for full and fast recovery.”

“Tackling fraud is a complex, long¬-term fight, but with the government willingness to take action, it’s one we intend to win. The Ontario Auto Reform, adopted last year, gives us more time to respond to treatment plans and identify inappropriate and abusive requests. What we need in the longer term are greater consequences for the perpetrators of fraud and abuse.”

The industry is working together to fight the problem of fraud and limit the impact it has on premiums.

Intact welcomes the establishment of the Ontario government’s Anti-Fraud Task Force that has made recommendations about detection, investigation and enforcement. “The task force is a step in the right direction given that fraud is omnipresent, puts innocent people at risk and increases insurance premiums,” Bridge continued.

Natural Disaster at 123 Mainstreet, Ottawa - Millions Impacted …. More on the Six O’Clock News

2011-11-14T11:11:00.000-05:00

I was recently reading an article called Floods, fires and fiascos – a homeowner’s primer in the Times Colonist. The first line of the article really hit home for me, “When people think of disasters, they generally think of natural disasters, such as earthquakes and floods.” You are likely never going to see the headline in my title, but the disasters that happen everyday, have no less impact for the individuals where disaster strikes. It takes over their life and has huge effects on their living arrangements and quality of life! Being insurance Brokers, we deal with it every day. People’s lives are truly turned upside down when any disaster happens to them, whether it be a major fire or flood, or something more minor. I personally experienced this when I went to my basement to find water seeping up from under my laminate flooring. Believe me when I tell you that despite knowing more about the insurance claims process than the general public, it was no walk in the park.

The point in mentioning this is that most people think it can never happen to them. Hopefully you are right, but just in case, please do the following things:

Take precautions so you are more prepared if it does happen (ex. Know where your water shut off valves are)
Take precautions to try to avoid or minimize the impact of the disaster (ex. Going on vacation in the winter? Have someone competent check on your home every day, or shut off the main water valve and drain the pipes before leaving.)
Read and understand your insurance policy. Not everything is covered. The last time you want to find that out is when you call to make a claim, especially if it could have been covered if you had asked. Talk to your insurance broker, they work for you. We can explain and answer questions, but need clients to take an interest in it before the disaster has happened.

Can we call the insurance about the leak in our basement. And if we claim it, will our rates go up?

2011-03-15T14:18:00.000-04:00

This tweet recently put me in touch with @mapsgirl, also known as “Wendy” (what a world we live in where someone’s twitter handle is the main name and the real name is the one in quotations!). One of my handy tweeple (that means twitter friend to you twitter abstainers) sent her my way. Her question was:

“Can we call the insurance about the leak in our basement. And if we claim it, will our rates go up?”

So, as I was writing a response to her, I realized that many other people might have the same question. So in general terms here is my response.

Firstly, I am an insurance guy – so here comes the disclaimer …. Unfortunately, to give specific advice, you have to be aware of an individual’s specific circumstances and a bit of the background, so none of this should be considered specific insurance advice, but here are a few general comments that I hope will help:

- Are you insured with an insurance broker? If so, you should never be concerned about contacting them directly to ask questions about a potential claim on your home insurance. As independent insurance brokers, we work for you, not the insurance company - so that is our job... and being your advocate in the event of an insurance claim, is a big part of that! It also allows us to better understand what has happened and council you about the likelihood of it being a loss covered by insurance (some water losses are covered and others are not, see link below to an article on this subject).

- If the leak has caused significant damage, you should report it (knowing that there are various types of causes of leaks, some of which are covered by insurance and some of which are not - see the article, "Flood, sewer backup, ground water, OH MY!" on our Rhodes & Williams facebook page) - that is what insurance is for. If it is a minor mishap and you can look after it yourself, or afford the minor repairs yourself, you should at least consider that (again, I don't have any details on the problem itself or any of your insurance details (i.e.. your specific coverage for that type of loss) - you should definitely speak to someone familiar with your situation - and make sure there aren't more serious underlying problems - like mould! You also want to know what your deductible is. If the damage is not much more than the deductible, it might not make sense to claim it). Insurance is meant to be there for those times when you really need it. Numerous minor claims can result in increased premiums as well as difficulty in finding appropriate coverage in future renewals. So the short answer is, "if you need it, use it, assuming it is a covered loss".

-Another suggestions - find out what caused the problem and if possible, fix it. Water damage is a major problem these days and it is definitely worth trying to prevent future problems.

- Wendy, I find it difficult commenting to people, who are not my clients. Unfortunately, I don't have enough details and background to give professional advice in those circumstances, so none of this should be considered as specific insurance advice, but I do hope that it has at least given you some direction. If I am able to be of any more help, please don't hesitate to contact me. (heehee – see how I snuck a second disclaimer in there)

The Insure Blur - Episode #2

2011-03-02T15:43:00.000-05:00

Although many direct writers of insurance (as opposed to independent insurance brokers) would like you to think that insurance is a simple thing to understand and anyone can understand it by themselves ("You pump your own gas, bag your own groceries….. why not buy your own insurance"….. Last time I checked, choosing the wrong gasoline or improperly bagging your groceries, didn’t put you at risk of not being covered in the event of a disaster, and losing hundreds to millions of dollars), it is not simple. There are many facts that I discover consumers are not aware of until it is too late.

So in an effort to educate our clients and all insurance clients in Ontario, Here is episode #2 of the Insure Blur series:

Your Automobile Insurance Coverage Changed in September 2010 - Did you Know?

There were some significant changes to car insurance in Ontario in September of last year. It is a big deal and one that is discussed at length in the insurance industry. We spent months preparing for it and rolling out information to clients. It is for this reason that I am amazed when I talk to the general public, and they have no idea about the changes to their coverage.

The maximum amount available to you as an insured driver in Ontario, was in many cases decreased with these changes. The reason is to try to minimize cost increases for most drivers. The important part to understand though is that higher limits can be purchased, if they are required for your unique set of circumstances.

Not covered under an employee benefits program?
Don't have family or someone who can look after housekeeping and maintenance if you are laid up after a car accident?
Have elderly parent's or young children who depend on you for care?

These are just a few of the circumstances in which you may want to consider buying increased limits. Please talk to your broker and understand how these changes could affect you in the event of an accident and the options available to protect you!

For a much more in-depth explanation of changes, please review the Auto Reform Guide on our website at http://www.rhodeswilliams.com/

Texting and Driving - R U Serious - it's no lol matter :-(

2011-02-17T12:55:00.003-05:00

Have you done it? Come on ... tell the truth! Have you ever quickly checked your email, sent an email or texted while driving? It may only take seconds, but it takes milliseconds for an accident to happen. Some of the BEST outcomes of doing this are, increased insurance prices, tickets, or minor accidents, but the outcome can be much worse than that.

If it is really that important, pull over! I commit to NOT doing this while driving, how about you?

If my passionate words are not enough to convince you, maybe one of these videos will!

Chance of increased insurance rates and tickets not enough? Watch the next video, and ask yourself if it is worth it.

STILL THINK IT CAN'T WAIT?

The Insure Blur - Episode #1

2010-11-26T13:22:00.000-05:00

Although many direct writers of insurance (as opposed to independent insurance brokers) would like you to think that insurance is a simple thing to understand and anyone can understand it by themselves ("You pump your own gas, bag your own groceries….. why not buy your own insurance"….. Last time I checked, choosing the wrong gasoline or improperly bagging your groceries, didn’t put you at risk of not being covered in the event of a disaster, and losing hundreds to millions of dollars), it is not simple. There are many facts that I discover consumers are not aware of until it is too late.

Many things that are second nature to those who are employed in the insurance industry, regular every day people (as opposed to us insurance broker superheroes!) do not know (or do not remember) when they need to. Although I am sure this blog has millions of readers ;->, I am not certain this will solve the problem ….. but it can’t hurt.

So starts a series in my blog called The Insure Blur, where I try to explain a few things that clients might not be aware of.

Your Credit Rating can Cost You More on Your Insurance Bill!

A Bad Credit rating can cost you money when it comes time to place your insurance. What does credit have to do with insurance? I don’t intend to comment on whether I agree or disagree with this practice (also referred to as “credit scoring”) , but it is a fact that many (not all) insurance companies take in to account your credit rating when they are determining the price for some of your insurance.

Why?

Many believe that there is evidence that co-relates a person’s worse credit rating with higher risk behaviour from an insurance perspective. That does not mean that they believe every person who has bad credit takes risk, but they claim that the statistics they have prove that as a group, these people tend to have more insurance claims, and therefore should pay more for insurance. The topic is much more complicated than that, but that is the “Coles Notes” version.

Right now there is legislation in place that disallows credit information to be used in the pricing of car insurance, but it is allowed in property insurance (house, renters, etc.). This may change shortly as the Insurance Brokers Association of Ontario (IBAO) is lobbying the government and there currently is a new Ontario private member’s bill to ban the use of credit in all personal insurance products. That being said, right now, your credit history can affect the amount you pay for your property insurance. Did you know that? … or was it a part of the Insure Blur?

Did the Earth Move for You Baby?!?!?

2010-06-24T11:47:00.004-04:00

Well, unfortunately, the tag line on this blog is not what you think.

We felt an earthquake yesterday that rattled building from Sudbury to Quebec City, and as far south as New York City. The Epicentre was about 55 kilometres north of Ottawa. I have not heard of any major damage or injury in this area (although I have heard rumours of minor damage, as well as some more serious damage in Quebec).

I am not trying to be exploitive (I heard that “I survived the 2010 Earthquake” t-shirts were on sale online before the day was done!), but feel obligated to advise that I have been trying to get the word out for a long time, that earthquake is not covered under your standard home insurance policy. Most people weren’t listening or weren’t interested in buying this coverage because they felt it would never happen here. People are listening now, when I point out that there is a fault line in Ottawa and serious earthquakes can occur. If clients choose not to purchase this coverage, that is their choice, but I need to do my best to make sure that they are aware that it is not covered under a standard policy, but that the coverage can be added on to that policy.

We buy insurance to protect us in case of disaster, and an earthquake is one of a few potential disasters that the vast majority of people don’t have insurance protection for. Below are links to a few sources of information about Earthquake and the risks in and around this area.

Links

Please, Don’t Read This Article!

2010-04-19T12:46:00.000-04:00

Whatever you do, please don’t read this article. I have been in the insurance industry for 14 years and this is one of the first articles I have seen that actually spins an insurance article in a positive light. This may shred your reality, that all insurance brokers are one eyed, sharp-toothed Ogres, that find ways to take your money and deny coverage by day and steal children by night.

This article may even hint that insurance brokers are service minded, community partners, your neighbours, your friends, and people who try to help their clients (I warned you that this could shred your reality!). Insane quotes like …

"The insurance was a huge blessing," says the Citizen society columnist. "It meant the difference between a family losing everything and being able to rebuild."

… gave this away as a ploy by the nasty insurance companies to hide their crimes!
The temptation might be too much for some of you, so here is the link: ….

Ottawa Citizen Article – DO NOT READ! ...

but whatever you do, don’t read the full article. After making ludicrous comments about how insurance actually helps people, it continues on to show you how to save money, protect yourself from loss, and understand your insurance coverage. Reading this, and worse yet, believing it, could cause the world as we know it to implode.

I would love to tell you more, but I just saw a child go by with some candy that I have to go steal, and kick a puppy or two on my way!

Please come a Callin’ before the ground starts a Rockin’!

2010-02-02T14:24:00.002-05:00

Many people aren’t aware of one of the biggest risks to their assets, which is not covered under most home insurance policies. Earthquake is not covered under home insurance policies, but that coverage is available as add-on coverage.

Did you know that the Ottawa Valley is part of the Ottawa-Bonnechere Graben, a rift valley formed about 175 years ago when a huge block of land fell hundreds of meters between the Petawawa Fault and the Mattawa Fault?

Did you know that the faults are still active and occasionally release stress in the form of earthquakes?

So the risk is definitely there! If clients have considered the risk and decided not to purchase Earthquake insurance, and thereby have chosen to take on that risk themselves, then they are making an educated decision, but here are my concerns:
• Someone might think that they are covered in the event of an earthquake (which they ARE NOT unless they have specifically added earthquake insurance to their coverage) or
• Someone hasn’t even considered it, or
• Someone is not even aware that the coverage is available, or
• Someone thinks it is too expensive, without considering it.

Make the call before the ground starts shakin’ so you can make an educated decision.

For more information, take a look at recent press on Earthquakes in the Ottawa area, on the Ottawa Citizen:
• http://ottawacitizennews.com/quakes/
•http://www.ottawacitizen.com/Business/Streeter+Life+earthquake+zone/1549085/story.html

Get Under An Umbrella – Policy That Is

2009-10-15T13:08:00.002-04:00

I have been meaning to write an article / blog about umbrella insurance for quite some time now. Howard Yegendorf beat me to it and did a great job of it. He was kind enough to allow me to use his material and act as a guest blogger for Rhodes & Williams Insurance Brokers.
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Nightmare Scenario #1: You are driving your car, not paying attention momentarily, and you go through a red light colliding with another vehicle going through the green. The accident is clearly your fault. The other driver suffers catastrophic injuries. He makes a good living and his injuries will prevent him from ever being gainfully employed again. He is 35 years old and your negligence will cause him to suffer a lifelong loss of income. He sues you. His own insurance company will pay for most of the care that he requires for the rest of his life. However, there are limits on that policy and there is not enough money in that policy to cover his cost of care for the rest of his life. After a trial in the Ontario Superior Court of Justice he is awarded a judgment against you in the sum of $4,000,000.00. The judgment is made up of his claims for general damages for pain and suffering and loss of enjoyment of life; his lifelong loss of income; his lifelong cost of care; his wife and children's claims under the Family Law Act.

You have an automobile policy with liability limits of $2,000,000.00. Your insurer is obliged to pay the other driver that $2,000,000.00 on his $4,000,000.00 judgment against you. The judgment remains unsatisfied in the sum of $2,000,000.00 and is a personal judgment against you.

The other driver can use all collection remedies at his disposal in order to execute upon the balance owing under the judgment. He can garnish your wages; seize any real estate you own including your home; he can seize all manner of personal property that you own, e.g., bank accounts, stocks and bonds, R.R.S.P.s, automobiles, etc.

Nightmare Scenario #2: You are driving your car in a prudent fashion, travelling through an intersection on a green light when you are struck by another vehicle that has run the red light. Similar to the other driver in Nightmare Scenario #1, you are catastrophically injured, will never again be gainfully employed and will require various types of care for the rest of your life. You are a good income earner with a decent long-term disability policy. But even with your long term disability payments and the accident benefit payments provided by your own automobile insurer, your various claims in the law suit against the other driver amount to an additional $4,000,000.00. The other driver only has $2,000,000.00 in insurance limits, just as you did in Scenario #1. The other driver, however, has no assets of any value and has just been laid off his job. The most you can collect on your judgment is the $2,000,000.00 of insurance that he has, leaving you with a $2,000,000.00 shortfall and a real concern as to how you will be cared for for the rest of your life.

UNLESS, you have properly insured yourself with a substantial umbrella policy on top of the primary limits of $2,000,000.00 of your automobile insurance. If, for example, you had a $3,000,000.00 umbrella policy, then the full $4,000,000.00 judgment rendered against you in Nightmare Scenario #1 would be paid. Your primary automobile insurer would pay the first $2,000,000.00. That primary policy having been exhausted, your umbrella insurer would then pay the next $2,000,000.00 and fully satisfy the other driver's $4,000,000.00 judgment. You would be fully insured for the event and your assets and income would be fully protected.

In Nightmare Scenario #2, the other, negligent, driver would be considered "underinsured" because your claim far exceeds his liability limits. If you had a $3,000,000.00 umbrella policy you could then sue your own insurer for the shortfall you suffered in being able to collect the full $4,000,000.00 judgment against the negligent driver. This claim would be made under the underinsured provisions of your own automobile policy.

Since you and the other driver in Nightmare Scenario #2 both have liability limits of $2,000,000.00, you could not proceed against your own insurer for the shortfall since you cannot "stack" the policies. It is only when you have more liability limits than the underinsured driver that you can access your own policy.

In my law practice I rarely see people with automobile insurance policies having more than $2,000,000.00 in liability limits. I am dumbfounded by that because the umbrella policy is relatively cheap. I personally insure a house, a cottage, two cars and a motorcycle, all with $2,000,000.00 in primary liability insurance. I have an umbrella policy of $3,000,000.00 over all 5 policies which costs a total of $325.00 a year. The $3,000,000.00 umbrella policies for the two cars that I insure each cost $60.00 a year.

My philosophy is that you do not buy insurance for the minor claim. You buy insurance for the catastrophic claim; the type of claim that can leave you in dire financial straits; the situations covered in both Scenarios #1 and #2 above. So if I can offer any advice in this article it is speak to your broker about putting an umbrella policy in place. Although not every insurance company offers them, these policies are without question available.

None of us expect a catastrophic event to occur in our lives. They are indeed very rare and that is the reason why umbrella policies are relatively inexpensive. The primary insurance that we have will cover the vast majority of claims that occur and umbrella policies are rarely called upon. However, these catastrophic events occur in our community every day; I see them all the time in my practice. So we can either "whistle past the graveyard" and hope that it doesn't happen to us or protect ourselves in the unfortunate event that it does.

Howard Yegendorf is a partner in the law firms of Howard Yegendorf & Associates LLP and BrazeauSeller.LLP. He practices personal injury law. He is certified by the Law Society of Upper Canada as a specialist in civil litigation and is also a Chartered Insurance Professional.

The Newest Battlefield Between Independent Insurance Brokers and Banks

2009-09-14T14:34:00.000-04:00

Battles between insurance brokers and the banks are nothing new. Current legislations states that banks can only promote insurance “outside of a branch”. Restrictions have been in place against banks for a very long time and for very good reason.

At issue this time is that the banks’ current attempts at expansion into insurance is a violation of the spirit of the legislation set up by the federal government in 1991. Obviously the government sees the need for such regulation since time and time again, the banks have tried to get them to reverse it, but it simply isn’t the right thing for the customer. A couple of the strongest reasons against banks retailing insurance in their branches are:

Fear of tied-selling – If you were at a bank looking for a mortgage, which has an insurance requirement built in to it, would you be comfortable saying “NO” when they offered the insurance with it (which of course has all the requirements of the mortgage built in)? Forget about the “fair competition” dilemma this brings, is it the right thing for the consumer?
Competition – Competition is healthy for business and results in fair treatment of the consumer. This might sound like an argument for allowing banks in to insurance, but it is quite the opposite. The big six banks already dominate Canada’s banking sector, making ours one of the least competitive banking sectors in the world. If those same institutions were allowed to offer insurance through their branches, they would also come to dominate the insurance brokerage market by virtue of their current size and power. Competition would be diminished and consumers would suffer.

There are many more reasons, but this is not a rant about why banks should not be allowed to retail insurance from their branches … that has already been looked at time-and-time again and the federal government recognizes that it is not the right thing for the consumer.

This is a discussion on what constitutes a bank branch. I can’t comment for all bank customers, but I personally can’t think of the last time I visited a teller in a branch, for my banking needs. The majority of my banking is done at bank machines, or in most situations, over the Internet. Logic would state that those bank machines and websites for banking purposes would be considered a “bank branch”. The same logic for protecting the consumer would apply to these “locations” just as much as they would standard bank branches, which is where most transactions took place when this legislation was written. It's really during the credit application process that consumers are most vulnerable and open to coercion. And as it turns out, you can also apply for credit on-line. Therefore the same threats to consumers exist whether it's in a branch or on-line. Times have changed and it appears that the banks are once again trying to skirt the rules and intent of the legislation by using the Internet, and not considering it a bank branch. What about the virtual banks that now exist? They don’t have “bricks and mortar” branches. Does that somehow make it any more acceptable for them to use unfair competitive advantages and potential tied-selling to the detriment of the consumer?

I sure hope the government decides to put an end to this skirting of the spirit and intent of the law to protect consumers. The same sound logic for not allowing banks to retail insurance products from their bricks and mortar branches applies to their virtual branches as well. Please enforce the intent of the law, or if need be, amend the law to avoid this loop-hole.

Credit Insurance - Worth Considering for Your Business?

2009-05-01T12:49:00.001-04:00

Credit insurance is an interesting product that is receiving a lot of talk and becoming a product of interest for many companies.

Most companies extend credit terms to their customers, so that payment can be made after their products have been sold. Credit insurance protects you against unexpected or catastrophic losses due to its customer’s insolvency or non-payment.

There are many benefits to credit insurance, some of which are obvious and others that are a bit more hidden. Credit insurance strengthens your balance sheet by securing your cash flow. This makes you more attractive to banks when looking for your own financing. Lending Institutions may extend more favourable financing terms if they are named beneficiary on a credit insurance policy. This could mean lower interest charges and reduced borrowing costs.

While all companies should consider credit insurance, it is particularly useful for companies that:

Have large, concentrated receivables from a few buyers
Are Presently trading on letter of credit terms and wish to offer open account terms
Operate in low profit margin industries and must minimize their bad debt losses
Want to improve their financing terms and conditions
Are experiencing a consolidation of the number of potential buyers
Have developed a new product but are unfamiliar with the buyers or their financial stability
Are expanding their sales into unfamiliar regions or countries
Manufacture highly customized and client specific products
Have profitability results that are very sensitive to economic recession
Are exposed to the political risks of international customers

The impact of a single credit loss could be the equivalent of the gross profit on several months of new sales. Credit Insurance is definitely worth taking a look at and making an educated decision as to if it is right for your business.

Rental Car Insurance Coverage - Are you Covered

2009-04-08T12:58:00.000-04:00

If you have rental car coverage on your automobile insurance policy, and you go and rent a uhaul cargo van or pick-up truck - are you covered? What do you think?

This is not an easy question and is misunderstood by most. The safest route is to talk to your insurance broker before assuming anything is covered ... that is what we are here for. That being said, here is the basic answer:

The rental car coverage on your auto policy is designed for when you rent a personal vehicle, and not for most trucks and vans that you might hire for a move. As a result, there are some exclusions that would apply. Here are the main ones that would apply:

The coverage would not apply to any vehicle with a gross vehicle weight rating over 4500kg (that would exclude most moving trucks and large vans) (check your specific policy wordings to confirm exclusions)
The coverage would not extend to carrying passengers or commercial use of the rented vehicle, in case you were running errands for your business.
The coverage is restricted to only those people named on the underlying policy.
Note that there is also a dollar limit to the coverage that might be an issue.

So as mentioned, every situation is unique, so give us a call to make sure.

Of note, one of the recommendations put forth in the Report on the Five Year Review of Automobile Insurance, presented to the Financial Services Commission of Ontario is as follows:

"The superintendent intends to amend the OAP 1 to provide a limited amount of coverage for vehicles with a GVWR over 4,500 kg's."

This is just a recommendation and has not been adopted, so ensure you are properly covered.

Tax Savings for Home Improvements

2009-03-31T09:03:00.000-04:00

There are many comments/articles/ stories about the temporary Home Renovation Tax Credit (HRTC). The basic explanation is that the federal budget offers a 15 percent non-refundable tax credit for certain renovations costs incurred between January 27th 2009 and February 1, 2010.

So, if there are so many comments/articles/stories about it and I am not an accountant or tax expert ... why am I writing about it?

The reason is because there are insurance implications.

Insurance to Value (ITV) is a "hot button" topic in the industry these days. Many people are underinsured. This happens due to a few reasons. One is because "inflation increases" that are put through annually on insurance policies, may not keep up with actual increase in costs. It is a really tough thing to keep on top of, and results in many people being under-insured if they have a loss that results in the complete destruction of their home. I recently helped out a friend of mine who was insured with one of our competitors. When we wrote his insurance for him, we properly insured his house at a value of about $100,000 more than he was previously insured at! Another reason is that many clients don't think to advise their insurance broker when they do renovations. If your broker doesn't know about it, he can't insure it.

So, back to the HRTC ... if you are taking advantage of this incentive, give us a call and let us know so that we can make sure that your home is properly protected for the true replacement cost of your home. This will result in the proper protection being there when you need it most.

Disaster Planning

2009-02-09T07:17:00.000-05:00

Well we have been preaching disaster planning to our clients for years, and this weekend, we had a bit of a test for ourselves! Temperatures rose, causing pooling water on our roof, the roof drain however was frozen over, so the overflow started leaking in through the roof. Luckily, we have done disaster planning, AND this disaster was a lot less serious than it could have been. Disaster Planning is a very complex planning excercise which I don't plan to discuss in depth here, however there were a couple small lessons that I thought I could share with our clients.

Even in areas where water isn't leaking through the roof, water seeps through carpet walls, cupboards, etc. Make sure you don't have important equipment or documents on the floor to seep up water - put them up! Keep your computer equipment up off the ground. Make sure you always have an up to date contact list for all emergency contacts, readily available - and a phone tree for advising staff. Act immediatley to minimize damage, and call in the experts.

Well it is Monday morning, and we are operating as normal, with no loss. Thankfully, planning made this an easier task to deal with.

Find us on Facebook

2009-01-12T09:06:00.000-05:00

Well, we finally did it. Although I am not convinced that it will be embraced, Rhodes & Williams Insurance Brokers is now on Facebook. I spent some time over the last couple weeks, creating what I hope may encourage some participation. If anyone has any ideas for how to make it more useful, please let me know. Future ideas include, video insurance tips, links to tools to help our clients, and bios on staff. Do you have any other ideas?

http://www.facebook.com/pages/Rhodes-Williams-Limited/42887671031?ref=nf#/pages/Rhodes-Williams-Limited/42887671031