March 16, 2012 by Canadian Underwriter
Nearly 90% of B.C. home insurance policyholders are paying for insurance protection they don’t need or want, according to Square One Insurance.
The Vancouver-based home insurer found that out of 1,000 policyholders, 87% are paying for irrelevant protection with traditional home insurance policies.
“Most home insurance policies were designed in the 1970s, meaning they provide too much coverage for fine china, silverware and furs, but not enough for computers, cameras and cell phones,” says Square One Insurance president and CEO Daniel Mirkovic. “What this means is that if there was a loss, many policyholders wouldn’t be adequately covered for some of their most prized possessions.”
In addition, Square One found more than two-thirds (67%) of sampled policyholders pay for detached garages they don’t even have.
Other notable findings include:
• Only 13% of policyholders need or want protection for china, silverware and furs.
• Only 14% need or want coverage for fine arts.
• Just 8% need or want coverage for collectibles.
“Traditional home insurance policies cannot be truly customized to individual needs,” Square One notes in a press release. “Coverage such as the above is automatically included, whereas important coverage, like earthquake insurance, is not.”