TD Insurance Poll reveals 1 in 5 Atlantic Canadians don't know what they're covered for

TORONTO, Oct. 7 /CNW/ - Have you gone on vacation without knowing where you're staying? Perhaps you've purchased a car without knowing what features you paid for? Highly unlikely, yet according to the TD Insurance Coverage Uncovered Poll almost one-in-five (17%) Atlantic Canadians admit they're unsure or have no idea what they're covered for in their insurance policies. Fortunately, they are the most likely in Canada to say they've been pleasantly surprised to find they had more coverage than they thought (17% vs. 13% nationally).

"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 Atlantic Canadians (84%) say that they think they understand what is included in their insurance policies, most don't take the proper steps to protect themselves. Fifty-seven per cent don't bother to keep a detailed inventory of their home's valuables and only 26% 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 three things Atlantic Canadians believe a standard home insurance policy covers include: protection from liability if someone hurts themselves on their property (83%), damaged or stolen property (79%), and roof damage from tree branches (73%).

Fifteen per cent of Atlantic Canadians 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

More than half (54%) of Atlantic Canadians have had to make a claim on their insurance before. Of those who have had to make a claim, 32% 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, 35% of Atlantic Canadians said water damage. Atlantic Canadians were also the most likely to say fire causes the most home insurance claims (33% vs. 24% nationally). Few Atlantic Canadians think that the most damage is caused by wind and tornadoes (4%) and third party bodily injury claims (2%). Less than 1% named lightning as a top cause of damage.

According to TD Insurance, last year, 36% of home insurance claims in Atlantic Canada were the result of water damage. Seventeen per cent were a result of wind and hail, 10% were due to theft 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 Atlantic Canada.

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.