Ask an
Advisor
Questions to ask
your insurance
advisor to make
sure you’re covered
What does my home
insurance policy cover?
Is there a specific kind
of insurance for the type
of home I live in?
What’s
it Worth?
HOME OFFICE
Don’t forget:
• Tablets
• Desk accessories
You’re not likely to forget
the TV, fridge, furniture or
washing machine, but don’t
forget all the little things
that add up too
Are there certain risks
not covered by my policy?
What is a deductible?
And how does it affect
the cost of my home
insurance?
Am I entitled to any
discounts?
Is my home business
covered by my home
insurance policy?
KITCHEN
Don’t forget:
• Countertop
appliances
• Place settings
and cutlery
• Pots and pans
Should I make a claim
for every loss?
AMAInsurance.ca/Home
Create an exhaustive inventory
There are no hard rules on how to
inventory your home’s contents.
Whether you jot down a list or make a
spreadsheet, being thorough is what’s
important.
Rifle through every room, closet
and crawlspace to itemize everything,
from your well-loved IKEA cutlery and
kitchen linens to the camping gear and
tools stashed in the garage. Note the
make, model and age of items, being
as specific as possible, and document
serial numbers. Such details help
insurance adjusters identify what
was lost or destroyed, identify similar
products for quotes, and determine
replacement and depreciation values.
Consider making videos or taking
photos of the rooms in your home as
well as individual items. (Family heirlooms rarely come with receipts.) This
can be can a valuable way to verify
details if you need to make a claim.
Sometimes you don’t know the true
value of obscure items, such as a
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WINTER 2016
AMA INsIdER
LAUNDRY
ROOM
Don’t forget:
• Iron or steamer
• Dyson vacuum
treasured hockey card collection, until
your insurance adjuster tries to determine its replacement cost. Retain
receipts, warranties and appraisals,
especially for valuable possessions. “It’s
your proof of ownership and the age
and value of items,” Kee says.
When you’ve finished, make and
keep multiple copies of your inventory—at the office, in a safety deposit
box or saved in the cloud for quick
retrieval.
Consider your coverage
Your home (including the land it’s
on) may appreciate over time, but its
contents typically depreciate. That’s
why it’s essential to not just read your
policy, but to understand nuances,
such as actual cash value (ACV) versus
replacement cost (RC). For instance,
if you purchased a TV for $1,000 five
years ago and tried to sell it today, the
market value would be significantly
less. The ACV is similar: It’s calculated
by determining the replacement cost of
the item and subtracting depreciation.
While it’s generally considered a better option, RC has intricacies too, Kee
explains. “For example, if you were to
lose the home completely, insurance
would cover the cost of materials and
labour to rebuild your home. It may
cost more [to rebuild] as a one-off than
when you’re building a whole new subdivision because of economies of scale.”