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

VANCOUVER, Oct. 7 /CNW/ - Most British Columbians wouldn't go on vacation without knowing where they're staying or how they're getting there. Yet according to the TD Insurance Coverage Uncovered Poll, one in five admit they're unsure or have no idea what they're 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."

While four out of five British Columbians say that they think they know what is included in their insurance policies, most don't take the proper steps to protect themselves. Fifty-eight per cent don't bother to keep a detailed inventory of their home's valuables and only one third 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 British Columbians believe a standard home insurance policy covers include damaged or stolen property (80%), damages to the roof if a tree branch falls on it (76%), and protection from liability if someone hurts themselves on their property (73%).

Twenty-four per cent of British Columbians 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

One in six B.C. residents have had to make a claim on their insurance before. Of those who have had to make a claim, 28% 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 British Columbians said water damage. The other top responses were burglary (29%) and fire (22%). Few British Columbians think that the most damage is caused by wind and tornadoes (3%), and even less think third party bodily injury claims (2%) and lightning (1%).

According to TD Insurance, last year, 30% of home insurance claims in Western Canada were the result of water damage. Thirty-seven per cent were due to wind and hail, 10% were due to theft and 2% because of fire.

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

    <<
    -   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 251 from British Columbia.

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.