Q: What is a deductible?
A: Much like health insurance, you typically pay an out-of-pocket amount toward whatever needs to be repaired or replaced before your insurance kicks in to pay the rest. That is your deductible. When you choose coverage, you have an opportunity to choose your deductible amount. Going with a higher deductible (you pay more toward the repair or replacement before insurance kicks in) means you will pay a lower monthly premium for your coverage.
Q: What is the difference between an insurance broker and an insurance agent?
A: Agents sell insurance products on behalf of one insurance carrier. Brokers build relationships with several insurance providers so they can shop and compare numerous policies and potentially save you more money
Auto Insurance
You’ve got questions and our team is here to answer them. With our in-depth understanding of auto insurance, you can enjoy peace of mind when you get behind the wheel.
Here are a few of the most-asked questions we get from our customers:
Q: Can anyone drive my vehicle and are they covered in case of an accident?
A: You can allow anyone with a valid driver’s license to drive your vehicle. Keep in mind, if they have an accident, you will be responsible for handling the claim and it will be your policy and your insurance driving record that will be impacted. If the driver is someone in your household or drives your vehicle regularly, you should add them to your policy.
Q: How much auto insurance do I need?
A: You must have a minimum amount of coverage as mandated by your provincial government. If you can afford it, it’s wise to consider extra coverage above the minimum. Otherwise, you will pay out of pocket should the cost of repair, replacement, or legal fees be more than the minimum insurance covers. Dawson & Keenan can compare providers to find you the best coverage at a price you can manage.
Q: What is no-fault auto insurance in Ontario?
A: No-fault insurance means that if you are injured or your car is damaged in an accident, you cannot ask the other driver’s insurance company to pay expenses. You must deal with your own insurance company, regardless of who is at fault. Keep in mind, whichever driver is deemed “at-fault” by the police may incur a rate increase. Ask your Dawson & Keenan broker about adding an accident forgiveness option to your policy to help offset this increase.
Q: Is it possible to reduce my auto insurance costs?
A: Yes, it’s possible to reduce your rates by taking certain steps, such as:
- Improving your driving record (reduce tickets and/or accidents).
- Limiting how often you drive (take public transportation, move closer to work).
- Selecting a higher deductible (this lowers your premiums and if you avoid using your coverage, you can enjoy some savings overall).
Q: Should I include coverage for rental vehicles with my auto insurance?
A: One of the most popular coverage options for auto insurance is the OPCF 20 Coverage for Transportation Replacement. Dawson & Keenan offers this additional coverage to ensure you have access to a rental vehicle, in the event your primary insured vehicle is damaged or suffers loss from an insured peril.
Q: How are my auto insurance premiums calculated?
A: Your premium rate is calculated on a number of factors including:
- Where you live (city, suburb, rural, etc.)
- Your past driving record
- Type of vehicle and what it’s primarily used for (work commute, long distances, etc.)
- Type of coverage and deductible amounts you select
Q. Why do you recommend choosing $2 million in liability coverage rather than $1 million?
A: Every standard insurance policy sold in Ontario includes something called Third Party Liability (TPL) coverage. You must carry a minimum of $200,000 in TPL – not nearly enough to cover paying for damages, injuries, and a lawyer. Insurance experts say even $1 million may not be adequate. Our brokers recommend carrying $2 million in TPL. What you pay for this added protection is not significant and well worth the peace of mind. Contact us today to learn more about how TPL works.
Q: What will I be covered for with my auto insurance policy?
A: There is auto insurance that every driver in Ontario must carry. These coverages include:
- Third Party Liability Coverage (TPL)
- Statutory Accident Benefits Coverage
Other optional coverages are available, such as collision and comprehensive. Talk to your broker for more information.
Cottage Insurance
Q: What additional coverages should I consider in my cottage insurance policy?
Every cottage insurance policy is different, so be sure to review it with your broker carefully. We may recommend a few additional coverage options, depending on your specific needs, to make sure you’re fully protected. These include:
Contents coverage – Any contents you permanently keep at your cottage will be covered by your cottage policy, while items you take back and forth are covered by your home insurance policy. Make sure you have adequate coverage for items that remain with your cottage.
Detached private structures – If there are private structures, such as a boathouse, detached garage, shed, or any other detached buildings on your cottage property, you may need to purchase additional coverage.
Watercraft – If you own power boats, jet skis, or other watercraft that are kept permanently at the cottage, make sure these items are covered in your policy, or purchase additional coverage for them.
Q: What is a named perils policy?
A: If you have home insurance, you will likely have a comprehensive or all risk policy. However, the part-time occupation of your cottage may only qualify for a named perils policy. This type of policy gives you coverage for specific risks, including fire, explosion, smoke damage, or water damage (excluding sewer backup or flood). Other risks like sewer backup, overland water, and vandalism may require additional coverage.
Q: Do I need to have home insurance in order to purchase cottage insurance?
A: No, you do not need a homeowners policy to purchase cottage insurance. At Dawson & Keenan, we can help you find the best policy for each property. Talk to one of our brokers to learn more about how this works.
Q: How does frequency of use affect my cottage insurance premium and the type of cottage insurance I need?
A: Cottages are typically second homes and how often you are there can impact your rates. Other factors that can affect rates are whether your cottage is equipped for year-round or only seasonal use, and if you ever rent out your cottage.
Farm Insurance
Q: What does farm insurance cover?
A: Typically, your farm insurance will cover the following:
- Personal Property — Damage, loss, or theft to the contents of your home.
- Farm Structures — Damage, loss, or theft to outbuildings like barns, silos, etc.
- Machinery and equipment — Damage, loss, or theft to tractors, trucks, balers, etc.
- Livestock & poultry — Loss and/or treatment expenses due to disease.
- Crops, stored grains, hay — Loss due to disease, disaster, or weather.
- General liability — Protection against lawsuits, damages brought about by a third party.
- Pollution liability protection — for bodily injury or property damage resulting from actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of farm pollutants.
- You can also add customized and/or enhanced coverage for:
- Sewer backups
- Replacement of farm losses of various kinds
- Comprehensive water coverage
- Power interruption
- Loss of income protection
- Increased fire department charges
- Employer’s liability and voluntary compensation for employees
- Farm accident insurance
Your Dawson & Keenan broker can guide you through your options and help you design the best farm insurance coverage at the best price.
Q: What is considered a farm property under a farm insurance policy
A: Dawson & Keenan works with insurance providers who cover dairy farms, poultry farms, cattle ranches, crop farms, orchards, berry farms, and wineries among others. Hobby farms can be covered under a special form of insurance. Marijuana farms must be licensed by Health Canada, in order to qualify for farm insurance.
Q: I’m a hobby farmer, so farming is not my primary occupation. Do I still need farm insurance?
A: A homeowner’s policy doesn’t cover many of the risks associated with farming — even hobby farming. Dawson & Keenan can review your current insurance portfolio and help you decide which insurance options would provide the most comprehensive coverage for your lifestyle.
Q: My farm is broken up into multiple acreage in a few different locations. How do I insure everything?
A: One farm insurance policy can absolutely cover all of your acreage, no matter location or distance. We can help arrange the right coverage for each location and also help you cover structures, equipment, etc. at every location, all on one affordable farm insurance policy.
Q: If I have a farm with multiple living quarters for the farm workers, can I cover these buildings?
A: If there are multiple homes or structures on a farm or ranch, you can insure all buildings or structures. Just make sure that all buildings on the property you want insured are listed.
Home Insurance
Q: Why do I need home insurance?
A: If you have or apply for a mortgage, your lender will require you to have property insurance. Of course, it’s highly recommended that you have the protection of comprehensive home insurance to cover you for everything from liability to theft to fire and many other vulnerabilities.
Q: Does home insurance cover damage from accidental escape of water?
A: If a pipe bursts inside your home or water escapes from a hot water heater, washing machine, or other home appliances, most home insurance policies will cover the cost of repair or replacement up to the limits of your coverage. During cold months, if you are away from home for more than 96 hours, you must shut off your water main or have someone check your home daily. Otherwise, a claim could be denied.
Q: Does home insurance cover damage from flooding?
A: This depends on certain factors. If you live in a designated flood plain, you may not be able to get coverage for this. There are some options you can add to your home insurance for added protection though, such as sewer backup coverage (covers you for sudden/accidental backup of water through a sewer, septic system, sump pump, or drain) and overland water coverage (covers you if surface water enters your home through a point above the ground).
Q: What is covered when a tree falls on my house during a windstorm?
A: You’re covered for home repairs and any damage to your possessions caused by those fallen trees and branches.
Q: What is covered if my house suffers from water damage during a storm?
A: Homeowners insurance will generally cover water damage from rain if it enters your home due to a covered peril. For example, if a windstorm creates an opening on your roof and rain gets in then you’ll be covered. A standard policy won’t cover flooding. You need to buy separate flood insurance coverage for that. See questions above for details.
Q: How much coverage do I need for sewer backup?
A: It depends on whether or not you have a finished basement. Your coverage should represent the replacement value of your renovations and contents.
Q: How do renovations affect my home insurance?
A: Renovations can affect the replacement cost of your home, so it’s important to alert your insurance broker if you’re thinking about making (or have already made) any renovations.
Q: If my house becomes vacant or rented, do I need to tell my broker?
A:The simple answer is ‘yes’, you have to contact your broker.
It’s always a good idea to check in with your insurance broker if you plan to leave your home vacant for weeks or months at a time – just to make sure you’re covered if anything happens while you’re gone. The same goes if you’re planning to rent out your home. Changes in occupancy will impact your coverage.
Q: How are my home insurance premiums calculated?
A: An insurance carrier will look at several factors, including:
- Proximity to fire station and/or hydrant/water supply
- Your home’s age and any updates
- Type of construction materials used
- Type of heating system
Business Insurance
Q: Why do I need business insurance?
A: Business insurance will keep you from suffering financial loss from accidents or lawsuits. If there’s an accident at your office or on your jobsite, you can face lawsuits and claims against you, which can be costly to fight and settle. Our insurance brokers are well-versed in business insurance and can review your risk exposure to help determine what options offer the best protection for your needs.
Q: Can I deduct business insurance on my taxes?
A: Business insurance is tax-deductible, as long as the coverage is for the purpose of operating a business, a profession, or a trade. Talk to one of our brokers for additional advice.
Q: How much will business insurance cost?
A: A number of factors affect the cost, because it depends on the type of business and the types of coverage appropriate for that commercial operation.
Cost also depends on the size of the business. A small, home-based business can often be adequately insured for less, while insurance for a large company with many employees and a wide range of business risks will cost substantially more.
The costs of business insurance can be reduced with effective risk management practices, and by comparing costs from several different insurance providers.
An insurance broker who specializes in commercial insurance can help with this process, and can manage a company’s complete business insurance portfolio through one office.
Motorcycle Insurance
Q: How much does motorcycle insurance cost in Ontario?
A: Similar to car insurance, the cost of your motorcycle insurance is determined based on a number of different factors. These include age, driving record, intended mileage, driver training taken, location, type of motorcycle, modifications, passengers, plus other factors.
Q: What requirements must I meet to get motorcycle insurance in Ontario?
A: In order to be legally eligible to operate a motorcycle in the province of Ontario, you must have an M Class license, which may be an M1 or M2 learner’s permit. An M license with condition M allows you to operate three-wheeled motorcycles. There is also an M license with condition L for driving mopeds and motorized scooters.
Q: Is it possible to reduce my premiums?
A: New drivers often pay higher premiums than experienced drivers, but you may be able to reduce your premiums long-term by taking an approved safety course. Additionally, installing an anti-theft system may help and/or having a secure place to store your motorcycle, such as a locked garage.
Snowmobile Insurance
Q: What type of snowmobile insurance is mandatory in Ontario?
A: For snowmobile insurance in Ontario, the only mandatory coverage is liability. However, we always suggest considering collision coverage, comprehensive coverage, specified perils coverage, and all perils coverage to make sure you’re fully protected.
Q: Is my snow machine covered if it goes through the ice?
A: No one wants to imagine a scenario where your machine goes through the ice, but mishaps happen more often than you might think. It’s important to have collision coverage with your snowmobile insurance. If you don’t have collision coverage, you’ll face significant out-of-pocket recovery and replacement costs if your vehicle goes through the ice or crashes.
