General Insurance Questions

A deductible is the amount that you’ve agreed to pay, when you purchased your policy, in the event of a claim. For example, if you have a $500 deductible and it costs $5,000 to replace your property after a break-in, your insurance company will pay $4,500 and you’ll pay $500. You’ll need to pay the deductible every time you make a claim.

In order to provide coverage, your insurance company may require any of the following:

  • A written statement outlining the details of your loss
  • A police or fire department report
  • An inventory list of the damaged property with quantities, and value of the items being claimed
  • Evidence and documentation showing books of account, receipts, invoices, photos, or other vouchers verified by statutory declaration
  • Proof that you mitigated your loss and took steps to prevent further damage
  • Cooperation with reasonable requests from the insurance company

The amount of time required to handle each claim will vary based on the severity, extent and type of the property loss or damage.  Some claims can be resolved shortly, but others are more complex and may require inspections, estimates, police reports, and investigations that may take longer.  In addition, if there is a natural disaster affecting the area in which you live, there may be delays in all activities that follow.  The sooner you provide the information requested by your insurance adjuster, the sooner your claim may be settled.  The loss must be denied or payable within 60 days after completion of the proof of loss.

Get a second opinion by a reputable engineer, trusted contractor, or price quotes from real life vendors, stores, internet sites or appraisers and provide them to your adjuster.  In return, your adjuster can provide you with the documentation that he/she used to evaluate the value of your property.  If you still do not agree with the amount offered by your insurance company an appraisal process is described within the Insurance Act.  It is important to remember that the insurance company needs to compensate you for the same like kind and quality.  Any increases in prices due to upgrades or inflated contractor prices cannot be claimed on your insurance policy.

The answer depends on the circumstances of your claim.  You may have a claims free discount which you may lose if a claim is paid.  Talk to your broker or agent.  He/she may be able to give you a better idea if your claim might affect your premium.

Depending on the policy that you purchased with your agent or broker, the amount payable after a loss will either be based on Replacement Cost or Actual Cash Value.

Replacement Cost is the cost of repair or replacement (whichever is less) with a comparable like, kind and quality, without an amount taken away for depreciation. If repairs are being done, only new materials of the same kind and quality will be used.

Actual Cash Value is the value of something on the day the claim is made, not the value of it when it was new.  This is calculated by taking the replacement cost then taking away an amount for depreciation, which is figured out by the condition of an item, its resale value, and its normal life expectancy.

Example: Let’s say you bought a brand new TV for $1,500.00 in 2012 and it gets stolen one year later.  Calculations show that the TV was worth $1,000.00 when it was stolen.  With Replacement Cost on your policy, you would get a new TV of the same like, kind and quality for the amount that it costs to purchase on the date of your loss.  With Actual Cash Value, you would get $1,000.00 cash (which is the price of the television used).

Home Insurance Questions

Yes. The definition of “dwelling building” includes an outdoor swimming pool and attached equipment on the premises. Be sure to allow for it when determining the limit of insurance on your dwelling.

Yes, but generally this is limited to $300 in all for loss of money.

Yes, we insure your freezer contents while contained in a freezer located within your dwelling for loss up to $1,000 if caused by a power failure or breakdown of the freezer unit.

Yes. Personal Property of students residing away from home is insured up to a limit of $5,000* for each student. It is important, however, to keep the company informed of the student’s status – once they are done school, this automatic extension no longer applies. (* higher limit may apply)

The homeowner policy includes an extension for Detached Private Structures on the premises equal to 10% of the limit of insurance on the dwelling. This extension does not apply to any building or structure designed or used for farm or business purposes. It is meant for personal use buildings only such as a garage, storage shed or gazebo.

Jewellery is limited for the peril of theft to a maximum limit of $3,000* unless you specifically schedule your items on a floater. Purchasing a floater also expands the coverage to include mysterious disappearance or loss of an individual item. (*higher limit may apply)

Unfortunately, the answer to this question is not a simple one. Many companies do not surcharge your premium if you have a claim. However, many policyholders enjoy claims-related discounts on their insurance policy. If you have a home policy and you have a claim, then you are no longer claims free and you will lose your discount upon the next renewal. If you have a farm policy and you have a claim, then any discount could be affected depending upon your total claims history with the company. It is best to contact your insurance agent or broker to discuss your individual situation for the complete answer to this question.

Yes, Personal Liability purchased as part of a Homeowner Package Policy provides coverage for liability arising out of your ownership of domestic animals.

Yes. Books, tools and instruments pertaining to your business are insured for up to $3,000 (as of January 1st 2013) in total, but only while on your premises and for the perils insured against on Personal Property. Your insurance agent or broker can best advise you in this regard.

Yes. There are special limits for money, collectables, jewellery, furs, tools, watercraft, antiques, utility trailers and bicycles. Limits are different depending on the policy that you have purchased. Please refer to your policy wording for the special limits available.  If you need to raise the amount of coverage on one of these items, you can add an endorsement to your policy or add a floater that protects something in particular. You can always adjust your insurance to make sure your coverage meets your unique needs.

Lambton Mutual provides you with financial compensation to repair or replace your property.  The choice of the repair firm is ultimately yours.  If you choose to use your own contractor, your claims adjuster will work with you and your contractor to determine both the scope of the repairs and a price which your insurance company agrees to.

Yes, you should drain your pipes and shut off the water.  Failure to do so results in denial of insurance for frozen pipes that end up bursting.  The only other way to maintain insurance coverage when you’re away for more than 4 consecutive days during the heating season is to make arrangements for a competent person to enter your dwelling daily to ensure that heat is being maintained.

Auto Insurance Questions

When making a claim for loss or damage to your vehicle, you must notify us in writing within 7 days of the incident, giving us the best information available at that time concerning the loss or damage and the circumstances.

Unfortunately, the answer to this question is not a simple one. Claims may affect your rating, especially if you are at fault. We do offer an endorsement called “Protection Plus” that provides protection to your “accident free” rating status from premium increases as a result of your first “at fault” accident. Contact your agent or broker for further details.

Convictions remain on your driving record for 3 years and accidents remain on your driving record for 6 years.

Yes. Your child should be added to your automobile insurance policy as soon as s/he receives a G1 class licence. However, there is no charge for the initial class G1 licence and a charge will only be made on the policy when the class G2 licence is obtained.

Yes, if the OPCF 20 – Transportation Replacement – has been purchased. There may be some coverage in the basic policy for loss of use by theft if comprehensive or all perils coverage has been purchased. If you depend on your vehicle every day for getting to and from work, it is best to purchase Transportation Replacement coverage.

Yes. The Ontario Automobile Policy (OAP 1) provides coverage for all licensed drivers that are operating your vehicle lawfully and with your consent. If the occasional use of your vehicle by others becomes more regular, however, you must notify your agent or broker.

Yes, we offer a 2.5% Winter Tire Discount on qualifying private passenger vehicles based on the following conditions:

  • The vehicle is equipped with four (4) winter tires.
  • The winter tires must be installed on the vehicle during the winter season (November – April).
  • The winter tires must bear the approved “winter tire” designation as implemented by Transport Canada.  The tires are marked with a pictograph of a peaked mountain with a snowflake.
  • A copy of supporting documentation has been provided.

For more information, please contact your Agent or Broker.

Yes, if Comprehensive, Specified Perils or All Perils coverage has been purchased, Hail damage would be covered subject to any deductible.

Presumably, yes, since you will be driving a lot less. Your class of use will change to reflect your reduced driving. You may also qualify for a retiree discount. It is best to check with your agent or broker.

Yes.  If you notify your agent or broker that your vehicle is not being used to commute for the coming year, we will gladly change your classification to pleasure use for that period of time.

Yes, if you carry comprehensive or all perils coverage subject to any deductible that applies.

Yes, the territorial boundary extends to incidents occurring in Canada, the United States of America and any other jurisdiction designated in the Statutory Accident Benefits Schedule, and on a vessel travelling between ports of those countries.