When dealing with all types of insurance coverage in Alberta, it’s crucial to ensure that you are carrying adequate protection for your specific circumstances. Being underinsured can leave you and your loved ones vulnerable to serious financial consequences, which is why it’s vitally important that you understand all the terms, conditions and coverage limits associated with each of the policies you carry.
People typically end up underinsured because they elect to buy the cheapest available policy rather than making a comprehensive, careful and honest assessment of their needs. While the auto insurance industry imposes mandatory minimums that ensure most insured motorists have adequate coverage, drivers with no insurance face serious penalties including heavy fines and possible jail time.
Looking beyond the road, you might be underinsured in your life insurance, homeowners’ insurance, business insurance or renters’ insurance policies. In each case, you’re taking significant risks if you continue to carry coverage that has gaps or shortfalls.
Insurance Coverage Alberta: Looking at Life Insurance
Life insurance provides your loved ones with important protection that boosts their financial security in the event of your death. However, life insurance is on the decline in Canada. Recent industry figures show that only 68% of Canadian households had a life insurance policy in 2013, down from 79% in 2006. One of the major reasons is that many people simply don’t understand just how valuable this type of coverage can be.
Imagine you’re the primary breadwinner for your family, and a tragic accident or unexpected health problem claims your life prematurely. You might leave behind a mortgage, car payments, education costs, debts and other liabilities that your assets won’t protect. The loss of your income leaves your family in a situation where it might be impossible to make ends meet.
Life insurance offers an affordable solution to this exact problem. A modest investment today means financial protection for your family and loved ones if anything should ever happen to you.
Insurance Coverage Alberta: Insurance for Homeowners and Renters
While the vast majority of homeowners have their property insured, the same cannot be said of renters. If you’re a tenant, your belongings probably won’t be protected by your landlord’s building insurance, so you’re exposing yourself to significant risks if you don’t carry renter’s insurance. This type of coverage protects your personal property and belongings from perils including theft, damage, accidents and weather-related events.
When it comes to home insurance, it is once again very important to look beyond the monthly premiums and prioritize the right type of protection ahead of the price of the policy. Remember that while your personal property is entitled to certain minimum levels of protection, you may need to carry added coverage if you keep particularly valuable items inside your home.
You also need to protect yourself from a comprehensive list of perils, particularly if you rent out space in your home to a tenant. Water damage can completely ruin basement apartments, and you’re particularly vulnerable if you live in Alberta’s flood plain region. Talking to an experienced insurance advisor is the best way to make sure you have the right coverage for your specific personal situation.
Insurance Coverage Alberta: Do You Run a Home-Based Business?
More and more Canadians are working from home, and the number of Canadian home-based businesses is at an all-time high. However, if you think your business activities are covered by your existing home or renter’s insurance, you might be in for a surprise if a calamitous event ever prompts you to file a claim.
If you’re not carrying a specific home business insurance policy, or an extension of your home or renter’s insurance policy, your business activities and assets may not be covered. At minimum, you need to disclose to your insurance provider that you are running a business from your home; depending on the nature of your business, you may need to carry additional protection to cover equipment, inventory and other expensive items that would demand costly replacements.
Insurance Coverage Alberta: Trust Lane’s for All Your Insurance Needs
Lane’s Insurance is a full-service, Alberta-based brokerage offering comprehensive insurance products at excellent rates. Since we’re a brokerage, we work for you, not for the insurance companies, and we’re able to compare costs from various providers to ensure you’re getting the most complete protection for the lowest possible price.
If you have any insurance-related questions, or if you’d like to discuss your specific needs with a caring, courteous service represented, please contact us at Lane’s Insurance.