TD Insurance Poll reveals 1 in 4 Ontarians don't know what they're covered for

TORONTO, Oct. 7 /CNW/ - Most people wouldn't go on vacation without knowing the details of where they were staying or how they were getting there. Nor would they purchase a car without knowing the features they paid for. Yet according to the TD Insurance Coverage Uncovered Poll, 24% of Ontarians admit they're unsure or have no idea what they are covered for in their insurance policies.

"Don't confuse the peace of mind of having insurance with a false sense of security," says Henry Blumenthal, Vice President and Chief Underwriter, TD Insurance. "While it's unrealistic to know your insurance policy line by line, the basics of what you're covered for shouldn't be a mystery. Understanding your policies can help avoid costly issues in the event the unexpected happens."

Although the majority of Ontarians (76%) say they think they understand what is included in their insurance policies, most don't take the proper steps to protect themselves. Fifty-six per cent don't bother to keep a detailed inventory of their home's valuables and only 29% update their insurance policy when they acquire something of major value.

"Not updating your insurance policies is like not checking the weather before you get dressed and leave the house - you risk finding yourself in an unfortunate situation you could have avoided," says Blumenthal. "The bottom-line is no one wants to be standing knee deep in water in their basement wondering if they're adequately covered."

Protection at home

The top things Ontarians believe a standard home insurance policy covers include damaged or stolen property (81%), protection from liability if someone hurts themselves on their property (79%), roof damage from tree branches (72%) and expenses to live away from home if forced to leave suddenly (72%).

Eighteen per cent also believe damage to lawns and gardens is covered by a standard home insurance policy, however coverage in these cases is typically limited.

Making claims

Ontarians are among the most likely to have filed an insurance claim (61% vs. 53% nationally). Of those who have made a claim, 35% were surprised by something on their insurance policy.

"The best thing you can do to avoid unwanted surprises is to stay in the know," says Blumenthal. "Unless you can predict the future, it's always advisable to be prepared. This is not about being pessimistic, it is about being realistic. Bad things happen every day and we should always try our best not to be caught off-guard. Your insurance provider can help you uncover what you're covered for."

When asked what they thought caused the most home insurance claims, 38% of Ontarians said water damage. Other top answers were fire (27%) and burglary (19%). Fewer Ontarians think that the most damage is caused by wind and tornadoes (4%) and third party bodily injury claims (4%). Less than 1% named lightning as a top cause of damage.

According to TD Insurance, last year, 48% of home insurance claims in Ontario were the result of water damage. Fifteen per cent of home insurance claims filed last year to TD Insurance were a result theft, 5% were due to wind and hail and only 3% were due to fire.

Blumenthal offers helpful tips for ensuring your insurance policies have you covered:

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    -   Don't assume anything when it comes to coverage. Get the facts and
        ask questions to ensure you understand what your basic home insurance
        policy covers. Most insurers have a maximum replacement cost for
        individual items. This can also help you determine whether you need
        to add any additional riders to your policy. An insurance rider
        provides the policyholder extra protection beyond the provisions
        contained in a standard insurance agreement.

    -   Develop a list of possessions. This list includes items in your home
        and in other buildings on the property. Among the things you should
        include are indoor and outdoor furniture; appliances, electronics,
        computers, recreational equipment; china, linens, silverware and
        kitchen equipment; and jewelry, clothing and other personal
        belongings.

    -   Go Digital. When you've completed your inventory, transfer it to your
        computer. Make a back-up copy and keep this away from your home. You
        can also take photographs or video of particularly valuable items.
        This can also go a long way to recovering your possessions if you are
        unlucky enough to be broken into.

    -   Update your policy. A home's value increases as possessions of worth
        are acquired, as well as when repairs or renovations are completed.
    >>

About the TD Insurance Coverage Uncovered Poll:

Results for the TD Insurance Coverage Uncovered Poll were collected through an Environics Research Group telephone omnibus, conducted between September 2-10, 2010. A total of 1,503 completed surveys were collected with Canadian adults, including 250 from Ontario.

About TD Insurance

The TD Insurance brand is a part of TD. The wide range of TD Insurance products help protect clients from the 'accidents of life' including credit protection, life, health, travel, home and auto insurance. With more than three million clients, TD Insurance authorized products and services are available through a network of more than 1,000 TD Canada Trust branches, the Internet and telephone. The TD Insurance brand, through its TD Insurance Credit Protection and TD Insurance Life and Health brands, is the number one provider of critical illness insurance and direct life and health premium origination in Canada. And through its TD Insurance Meloche Monnex and TD Insurance Home and Auto brands, is the largest direct-response insurance group in the country. For more information, visit www.tdinsurance.com.