Everything is the same….or is it?
It’s common practice for many people to come into our office and say they want to renew their insurance, often stating that everything is the same- no changes. As brokers, we are trained to ask open ended questions about their specific situation in an effort to provide them with the best advice. Insurance policies are contracts.
ICBC renewals
There appears to be a common misconception that a policy review done years ago would still be sufficient today. Near the end of the transaction or worse, upon completing the transaction, we are often asked about a situation that could affect their insurance. New or underage drivers, change in vehicle use, someone turned 65 or got a different job or changed their banking information. If the transaction has been submitted then it has to be voided and the whole process started over. No problem for the broker, they have all day. However, you as the consumer, likely have more important things to do. Please don’t think the broker is trying to upsell you. We are merely ensuring that you have the best coverage for your situation and a short review can possibly save you a lot of time and money later in the event of a crash
Home and property insurance
Initial applications are based on an assessment of the property and a review of the clients needs and renewals are based on these assumptions not changing. Insurance is never an exciting subject to most people until there is a claim. For example, a homeowner can start a home based business, rent a room to a boarder, rent a secondary suite, renovate their home, purchase a second location or even move their residence. Usually the latter two are not an issue because financing is involved as are lawyers.
Commercial
Businesses don’t often change their scope of work but they can. If they do, then this needs to be reported to the broker at the time of change, not just at renewal to ensure there are no gaps in coverages. Other change can include equipment that is acquired, leased or rented. These also need to be included in the policy.
Pleasure craft and RVs
Where these are used, how they are used and who uses them need to be considered. Where they are stored is also important. Policies may not respond to a claim if the risk has changed because this is what the original policy was based on and issued accordingly.
Best advice?
Please don’t be offended if our questions seem repetitive or unimportant to you. They may not be, but why risk the chance of putting yourself at risk by rushing through a review?
