Insurance

Are Home-Sellers In Canada Required To Provide Insurance?

Many families looking to buy a home in Canada find themselves with questions about how insurance works and if the seller is required to provide it. While home sellers are not required to provide insurance in Canada, many will offer some sort of insurance as an added incentive for buyers, so be sure that before you make an offer on a new home, you clarify the insurance situation with the seller.

The Rules:

While home sellers in Canada are required to provide deeds, mortgage information, and current property tax bills, they are not required to provide insurance for the buyer. Home sellers will generally have homeowners insurance on the property until the day they move out as a precaution, so buyers don’t generally need to worry about damage to the house just before they close the deal. However, once the title is transferred, the former owner is no longer legally responsible for the property.

Why Some Sellers Offer Insurance:

It may not be required, but it isn’t uncommon for sellers to offer some type of home insurance that can be transferred to the new owner to make potential buyers more likely to make an offer. Many Canadian home sellers will offer home systems and appliance breakdown insurance, which is transferred to the new owner once the property sale is finalized. Home systems and appliance breakdown insurance usually applies for one year, and covers high maintenance costs for unexpected breakdowns or other problems to protect the new owners.

Insurance for Buyers:

It’s also important to note that if you’re buying a new home and getting a mortgage, you will be required to get homeowner’s insurance. This rule is designed to protect the mortgage lender in the event that the property owner defaults on their mortgage.

The bottom line for prospective buyers is this: because home sellers in Canada aren’t required to provide insurance, the best course of action is to inquire about insurance before you make an offer. It is all about getting in contact with the realtor. According to Calgary Listings, “enjoy the rewards of working with an experienced professional and receiving personal customer service.”

The realtor will ensure you have all the information necessary when going to buy a home including whether or not the seller will provide the insurance.

The realtor will also know whether or not the insurance can be transferred to you after the sale is complete; in some cases, sellers will be amenable to offering insurance if they know that it’ll make you likely to close the sale. Once you do purchase your new home, be sure to get homeowners insurance right away even if you aren’t taking out a mortgage, as once the title is transferred to you, you’re financially responsible.

5 Things To Know About Your Home and Property Insurance

Did you know that 63.7% of Americans owned homes by mid-2017? This is the around the same percentage in 1988. Homes may rising in cost, but just as many Americans purchase homes. Have you just purchased your dream home? Now you need to buy insurance for it. Here are a few things you should know about your home and property insurance.

Policy Exclusions

What does your home insurance policy cover? The last thing you want to hear when you go to file a claim is that your insurance doesn’t actually cover that. For example, most policies don’t cover earthquake and flood damage. To avoid any nasty surprises later, go through your plan with an insurance agent you can trust. They will help you understand the content of the policy document and exactly what it does and does not cover.

When to Stop Paying

If your bank initiates the foreclosure process, continue maintaining your home insurance. If you cancel your coverage, the lender will buy a force-placed policy for your property. Lender-placed insurance costs more than an insurance policy you purchase yourself, so if this happens, reinstate your old policy or get a new one. Present evidence of coverage to your lender, and ask them to discontinue their policy.

Replacement Cost

The replacement cost of a property may differ from its market value. Let’s assume the home insurance on your property covers up to $200,000, but that a disaster happens and in order to repair or replace your home, it’ll cost $250,000. Your insurance won’t cover anything more than $200,000, so you’ll have to take care of the remaining $50,000 yourself. Home insurance policies often cover more than the market value of the property for this reason.

Your Home’s Cash Value

Sometimes a disaster strikes and you choose not to replace your home. In this situation, the insurance company would write you check for the home’s cash value. But how do they know the cash value? They start at the replacement cost of the home, and then deduct the depreciation of the property. The remainder is the cash value. Don’t confuse cash value with replacement cost. Replacement cost stays the same, even as property depreciates over time, so if it’s been 10 years since you purchased your home, your home’s cash value could be tens of thousands of dollars less than the replacement cost.

Liability

If an accident on your property harms other people, you could be found liable. Fortunately, home insurance policies often cover this types of situations. One thing to note, however, is that a force-placed policy covers less than a regular home insurance. It doesn’t provide coverage for your personal property. Creditor-placed policies also don’t offer liability coverage, so if anyone gets hurt, that’s on you. If a lender ever tries to repossess your home (whether through your permission or not), continue making insurance payments so you can guarantee you’re covered for situations like this.

When it comes to insurance policies, being keen is essential. Knowing these five things will help you avoid trouble in the future. After buying home insurance for your property, keep up with payments and you’ll be covered for just about anything—except for those pesky exclusions.

How An Auto Accident Affects Your Insurance Rates

You’ve probably heard somewhere that car accidents tend to increase your insurance rates. Before you start panicking after an accident you should know some of the facts. Whether or not a rate increases and how high the increase is, depends on the insurance company’s policy. There are three common factors that determine a driver’s insurance rate after an auto accident.

Your Driving History Affects Your Premium

Some insurance companies look at the driver’s past driving history to determine whether to increase a premium. With most companies, poor driving history—like having multiple traffic tickets—is likely to influence these insurance rates. Most companies that view driving history as a determining factor charge higher rates after the accident and when the driver is joining the insurance company. Over time, however, if the driver has not had anything else added to his motor vehicle record, the rate usually decreases. This is because good driving is rewarded, and the insurance company is less likely to see the driver as reckless.

Your Rate Usually Increases When You’re At-Fault

Similar to receiving traffic tickets, being at-fault in a car accident is frowned upon when it comes to receiving a good interest rate. Insurance companies look at whether or not a driver has recently caused any car accidents. At-fault accidents make drivers appear to be more of a liability, and insurance rates can be higher for this reason. Even small infractions like side-swipe accidents after not checking a blind-spot can influence with certain providers. If the driver hasn’t had an at-fault accident, or if it’s been years since they have, insurance rates usually decrease.

Your Age May Determine Your New Insurance Rate

Statistics usually show younger drivers have car accidents more frequently, and insurance companies tend to follow statistics when deciding on their next move. Many teenagers and younger adults are often distracted behind the wheel, whether the distraction arises from phone-use or from talking to other passengers. Although not all young people are careless, the data shows that people in younger age groups are likely to have at-fault accidents and therefore, the company’s risk of having to pay out money to claimants increases. As the company’s risk increases, so does the driver’s premium.

Some insurance companies look at all three of these factors to determine future insurance premiums while other companies may only have one determining factor. Companies tend to follow the data that’s in front of them, however, so the fact remains that age, driving history, and past at-fault accidents are important in determining how much a driver should be charged for coverage.

5 Most Expensive Cars To Insure

Buying a car may be one of the most expensive purchases to make in a life time, second only to buying a home. Before buying a car, it is important to do all the homework to ascertain all aspects of the vehicle you are buying. Some of the elements to look out for include availability of spare parts in case of vehicle mechanical failure, depreciation, and maintenance costs. In addition to these, you need to get a good insurance policy to cover the car in the event of an accident or vehicle mechanical failure. The following are some of the most expensive cars to insure:

Dodge GT Viper

5 Most Expensive Cars To Insure

This is a speedy car with a V-10 engine that can hit 60 mph in just three seconds. The car costs about $4,048 to insure every year. The high cost is partly caused by the fact that it is preferred by people who want move very fast. This car is said to cost over three times the cost of insuring a Honda Odyssey. Other reasons that make them expensive to insure is their vulnerability to thieves as well as the high costs to repair.

Mercedes SL65 AMG

This is among the three top most expensive cars to insure. Its annual insurance cost amounts to $3,797. Generally, cars that are cheap to repair in case of vehicle mechanical failure and have fewer claims filed by the owners cost less to insure.

Mercedes S600 BI-T

The Mercedes S600 BI-T costs $3,539 every year to insure. The insurance rates however differ from state to state. This is because each region presents different sets of challenges including terrain and climatic conditions.

Mercedes S63 AMG 4Matic

This is the fourth most expensive car to insure with its insurance premiums standing at $3,513 every year. The car has an AMG 4.0L V8 biturbo engine which produces a lot of power and is able to reach 60 mph in just 3.4 seconds.

Porsche Panamera S Executive

5 Most Expensive Cars To Insure

This is one among the most expensive Porsche models and one of the most expensive cars to insure. It costs $3,484 every year to insure. To save on insurance costs, it is advisable to get at least three quotes from different insurance service providers.

Insurance is one of the elements that stretches its costs above then original buying price. The best way to approach it is to compare the different quotations from different providers as that you get the best deal.

Sources

http://www.marketwatch.com/story/10-most-expensive-cars-to-insure-2016-02-25

https://www.daveabels.com/mechanical-failures.html

https://gearheads.org/5-most-expensive-cars-to-insure/

5 Common Causes Of Car Accidents

If you drive a car long enough, you are likely to get into an accident yourself or at least see one on the road. Accidents can range from minor fender benders that do little or nor damage to major crashes that cause serious injuries and death. To avoid car accidents, it’s important to know the common causes.

Distracted Driving

5 Common Causes Of Car Accidents

The most common cause of car accidents, at least in the U.S., is distracted driving. This has been a problem as long as cars have been around, but it’s gotten much worse over the past couple of decades with the advent of cell phones and other small wireless devices. To help lower your chances of an accident caused by distracted driving, never use a phone or other electronic device while you are driving.

Speeding

Speed limits are in place for a reason: safety. If you don’t follow the posted speed, you are more likely to cause an accident. Speed limits typically reflect the amount of traffic and hazards present. Inner-city streets with lots of car and pedestrian traffic have the lowest limits, while highways and expressways have the highest one. Following the speed limit gives you time to brake properly and react to unexpected hazards.

Impaired Driving

5 Common Causes Of Car Accidents

Everyone knows that drunken drivers are more likely to cause an accident, but other impairments can also be a big risk. People on prescription medications can be impaired while driving and not even be aware of it. Sleep-deprived drivers also can be an accident risk. You should refrain from driving if you have been drinking, are overly tired or are taking a medication that lists driving impairment as a side effect.

Weather Conditions

A big contributor to car accidents is the weather. Icy or wet roads and poor visibility caused by rain, fog or snow are among the most-common causes of weather-related accidents. If you have to drive during inclement weather, you should slow your speed and make sure you are being vigilant.

Inexperience

There’s a reason that younger drivers pay higher insurance costs. Inexperience behind the wheel is a top cause of auto accidents. And it’s not just overall inexperience. Experienced drivers who are driving a different type of vehicle, such as a motorcycle or large truck, also can be more prone to accidents.

Car accidents kill tens of thousands of people each year in the U.S. To stay safe and avoid them, it’s important to know how they happen and take appropriate precautions.

References

https://braunslaw.com/practice-areas/car-accidents/

http://www.enddd.org/the-facts-about-distracted-driving/

http://www.pbs.org/newshour/rundown/growing-number-states-fine-slowpoke-drivers-highway-fast-lanes/

http://www.drivehomesafe.com/article/inexperience_and_immaturity_causes_teen_accidents__deaths-12.html