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Personal Property

Insurance terms explained
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Personal Automobile

Insurance terms explained
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Commercial Property

Insurance terms explained
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Commercial Auto

Insurance terms explained
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Personal Property Insurance

This is also known as ‘Coverage A’ on a home insurance policy. The amount shown is the maximum that your insurance provider will pay to rebuild or repair your home for a covered claim. The dwelling refers to the structure of your home, including those attached to it such as a garage or deck.

This provides a single maximum amount of coverage for the property and belongings. In the event of a claim, the insurance company will pay up to the maximum regardless of the coverage used. This is helpful when you have one coverage that costs more than the other to repair or replace.

This is also known as ‘Coverage C’ on a property insurance policy. The amount shown is the maximum that your insurance provider will pay to repair or replace your belongings for a covered claim. Personal property refers to the contents of your home such as appliances, furniture, jewellery, clothes, art, etc. 

This is also known as ‘Coverage D’ on a property insurance policy. This  helps with the cost of temporary accommodations and living expenses if you need to leave your home if it is unlivable due to damage caused by an insured event, or if you are under a mass evacuation order.

This refers to the amount that a policy will pay in the event of a claim. GRC pays to repair or rebuild your home to its original state, regardless of the cost, even if it exceeds the limit stated on the policy.

This refers to the amount that a policy will pay in the event of the claim. RC pays to buy a brand new item that’s similar to the one that was lost or damaged. It doesn’t subtract for age and wear and tear so that you can replace the damaged item with a new one of like kind and quality.

This refers to the amount that a policy will pay in the event of the claim. ACV pays based on the value of the item at the time it was lost or damaged. It considers age, condition and wear and tear so that it pays you the value of the item today, and not what it cost when you bought it or the cost to buy a new one. 

This is a type of policy that you can purchase to increase your legal liability coverage beyond what your home and auto insurance policies provide. It usually requires minimum liability limits on your underlying home and auto policies to qualify. If you are found liable for an injury or accident, court awards can be hefty and your auto or home policy may not be enough – this is where an umbrella policy helps to fill that gap.

This is a slow flow of water that passes through porous material or an opening such as the basement walls or windows over an extended period of time. Any damage to your home caused by seepage is not covered by your policy.

This is defined as damage to your property caused by the sudden or accidental escape of water such as a burst pipe, an overflow from an appliance or a water main break.

A valuable optional coverage that can be added to home, condo or tenant insurance policies that covers water damage caused by the back-up or escape of water or sewage from a sewer septic or sump pump. 

A valuable optional coverage that you can add to your home, condo or tenant insurance policy that covers water damage in your property caused by the overflow of lakes and rivers, torrential rainfall, spring thaw and ground water. This is usually offered together with sewer back-up coverage.

The amount of money you pay first for a covered claim before your insurance company begins to pay the remaining costs. 

These are items, risks or situations that your insurance policy doesn’t cover such as maintenance and wear and tear.

These are changes made to a policy to add or remove coverage such as increasing deductibles or adding coverage for valuable items such as jewellery.

This covers the extra costs to bring your property up to today’s building standards after a covered claim. Home insurance typically pays to restore your home to its original state. For example, if the city or municipal code implements new laws that require upgrades such as fire safety systems for homes that are being built, this coverage will apply. 

 

Personal Automobile Insurance

This covers loss or damage to your vehicle for accidents where you were deemed ‘not at-fault’. This means that even though another party caused the accident, your insurance company covers the claim.

This covers loss or damage to your vehicle if you hit another vehicle or object, or your car rolls over.

This covers loss or damage to your vehicle caused by events such as fire, theft, windstorm, flood, or vandalism. This doesn’t include loss or damage caused by a collision or upset.

This coverage combines collision and comprehensive for wider protection. It basically covers a number of causes of loss, except those that are excluded from the policy.

These two optional coverages are often bundled to protect you when driving a vehicle you don’t own. OPCF 20 provides coverage for a rental vehicle while your car is being repaired due to a covered claim. OPCF 27 extends your auto insurance to the rental vehicle so you’re protected without needing to buy extra insurance from the rental company.

This is an optional liability coverage that you can purchase that covers you and your passengers in the event of a car accident where the other party does not have insurance, is underinsured, or is unidentified such as in a hit and run. If you need to make a claim against the at-fault party whose insurance is insufficient or doesn’t have any, OPCF 44 will cover the shortfall.

This means that regardless of who is at-fault in an accident, your insurance company will handle the claim for you. This speeds up the process to repair damage or access accident benefits such as medical care or income replacement without having to wait for determining who is at-fault.

This is an optional coverage available for brand-new vehicles that protects its value after a total loss. This means that your insurance company will pay you the cost of your vehicle without deducting for depreciation. 

In Ontario, determining who is at-fault for a vehicle accident follows strict rules under Regulation 668 of the Insurance Act to ensure a fair, consistent and streamlined process and is used by all insurance companies during an auto claim. These rules are independent of traffic or criminal convictions, weather conditions and mechanical failure.

These are the criteria used by insurers to assess risks and determine insurance premiums. Factors such as the type of vehicle driven, annual mileage and use (commute or pleasure), among many others, are used.

A principal, or primary driver, is the person who uses a vehicle the most. This means that the principal driver’s rating factors will be used to determine premium.

An occasional driver is any person living in your household who has a valid driver’s license and has access to your vehicle. This driver is also charged a premium. 

 

Commercial Property Insurance

This provides protection for goods while being transported from one location to another, whether by land, sea or air.

This refers to the changes your business made to the leased commercial space such as built-in cabinetry, flooring, lighting and more. If these items are damaged in an insured event, these will be covered under the property policy.

Also called Business Income, this coverage is typically included in a property policy that protects your business if your operations are disrupted due to an insured event. It helps pay for lost income and operating expenses such as rent, taxes and payroll while your operations are fully or partially shut down.

This is defined as damage to your property caused by the sudden or accidental escape of water such as a burst pipe, an overflow from an appliance or  a water main break.

This coverage is part of a Commercial General Liability policy that helps pay for legal costs and damages if you or your employees accidentally damage leased property. This refers to a leased physical space such as an office, store or warehouse.

This coverage is part of a Commercial General Liability policy that protects your business for completed work. It helps pay for damages and legal costs if you’re found liable for defects, negligence or failure after a project or service has finished.

This coverage is part of a Commercial General Liability policy that helps pay for damages and legal costs if the products you manufacture, distribute or sell unintentionally cause harm to others. This could be from a design flaw, manufacturing defect, or inadequate product warning or labeling.

This coverage is important for businesses that have employees because it provides protection for work-related injury or illnesses. It helps pay for legal costs and damages if your business is found negligent in causing the employee’s illness or injury. 

A valuable optional coverage that can be added to business insurance policies that covers water damage caused by the back-up or escape of water or sewage from a sewer septic or sump pump. 

A valuable optional coverage that you can add to a business insurance policy that covers water damage in your property caused by the overflow of lakes and rivers, torrential rainfall, spring thaw and ground water. This is usually offered together with sewer back-up coverage.

The amount of money you pay first for a covered claim before your insurance company begins to pay the remaining costs. 

These are items, risks or situations that your insurance policy doesn’t cover such as maintenance and wear and tear.

These are changes made to a policy to add or remove coverage such as increasing deductibles or adding coverage for valuable items such as jewellery.

This covers the extra costs to bring your property up to today’s building standards after a covered claim. Commercial property insurance typically pays to restore your business property to its original state. For example, if the city or municipal code implements new laws that require upgrades such as fire safety systems or accessibility systems for buildings under construction or repair, this coverage will apply. 

 

Commercial Auto Insurance

This covers loss or damage to your vehicle for accidents where you were deemed ‘not at-fault’. This means that even though another party caused the accident, your insurance company covers the claim.

This means a vehicle used in the course of business, even if it’s a personal vehicle. The usual types of commercial vehicles are trucks and buses over 4,500 kilograms, part of a fleet or ones that carry paying passengers.

Commercial vehicles are categorized into a vehicle class based on the type, size, weight and intended use to be able to determine the coverages required and corresponding insurance premium. Some common examples are light commercial, heavy duty, fleet and passenger-carrying.  

Sometimes confused as coverage available only in personal automobile policies, this provides medical and income-related benefits if you or your employees are injured in an accident while doing business, regardless of who is at-fault.

This coverage protects you from liability for injury or property damage caused by employees, contractors or volunteers while using their vehicle to do work related to your business.