Many Canadians Don’t Understand What Their Insurance Policies Cover – and it Keeps Them Up at Night!

Nearly a quarter of Canadians have not read their home (23%) or car (25%) insurance policies, yet the main worries that keep us up at night about insurance are what policies cover and how much they cost. Despite these worries, a new survey commissioned by belairdirect shows Canadians with home and car insurance are quite literate when it comes to their policies – but there are still some things customers need to learn.

Understanding Coverage

When it comes to understanding home and car insurance policies, the national survey revealed:

  • Three-in-ten Canadians say understanding insurance is like their daily commute – tedious, but necessary, while 16% think it’s like watching a boring movie – you want to turn it off, but you want to know how it ends.
  • 31% of Canadians with home insurance never take inventory of their property!
  • Nearly one-in-ten Canadians wonder if they are covered by animal damage – either by rodents to their home (8%) or large animals, like a moose, to their car (10%).
  • Four-in-ten Canadians with home insurance believe their policies automatically protect all of their valuables, while only 36% believe they are covered for a sewer back-up.
  • 39% of Canadians think they are covered for their golf bag if it’s in their car when stolen,  and 38% think they are covered if a drone crashes into their car windshield.

Customers can rest assured that the items they care about the most are likely covered with their home or tenant insurance policies, apart from special limits for certain items, such as jewellery, bicycles, collections, boats, or money, which vary by policy. So, whether an animal damages your car, or your belongings are stolen from your home or car, we’ve got you covered. Canadians’ belongings are worth more than they think, which is why it is recommended to create a complete inventory of your possessions and share it with your insurance provider. The agent can then assess that you have the coverage that fits your needs, including adding special protection as necessary.

Cannabis Considerations
Some Canadians are unaware of the effect legal cannabis can have on their home insurance premiums. Nearly a fifth (18%) of those with home insurance say growing legal cannabis in their homes will not affect their policy, and that their cannabis is covered. But the reality is, the legal cannabis Canadians have in their home is covered, but the specifics vary by province. At belairdirect there is a limit on recreational cannabis products under home insurance policies in Ontario, Alberta and British Columbia and no coverage is provided for plants growing outdoors. However, having cannabis plants at home could increase risk of theft or fire, which can affect insurance premiums.

Before hitting the road 
Nearly all Canadians with car insurance (98%) know at least one thing that affects their insurance premiums, the most identifiable were driving record (87%), history of claims (85%) and driving tenure (77%). Other considerations include how often you drive, where you live and the risk of theft.

Only 47% of Canadians with car insurance believe if someone borrows their car, they are covered by their insurance. In fact, when you lend your car, you lend your insurance.  

Overall, Canadians with home or car insurance understand its importance, but many (52% and 48%, respectively) find it difficult to understand their policy. Canadians should speak with their insurance providers or go visit their client centre online to review their policies, so they can have peace of mind, and better sleep, when it comes to their home and car insurance.

What’s keeping Canadians up at night? (CNW Group/belairdirect)