Ensuring some peace of mind

Homeowners may not be fully insured as house prices soar

As housing assessments continue to climb in B.C.

Skyrocketing assessment values may be leaving Victoria homeowners overjoyed but underinsured, according to a local insurance expert.

Lorie Zorn, who serves as the insurance services manager at Island Savings Insurance, said homeowners may unknowingly be at risk if their home insurance policy fails to keep pace with the Island’s rapidly inflating housing market. Disasters such as wildfires and earthquakes can do devastating damage to homes, and the cost to rebuild may not be covered under certain policies.

“Being insured to value guarantees you will be covered for the full replacement cost of your home and its furnishings if the worst happens and you have a significant loss,” said Zorn in a press release.

“In a real estate market like ours that is seeing rapid gains, ensuring you are covered for the current cost of replacing your home is essential so you won’t be out of pocket for the additional cost to rebuild or replace it.”

According to Zorn, the cost to rebuild one’s home differs from its value, and it’s important for homeowners to understand the replacement cost in case of a significant event.

“Many homeowners believe the replacement cost of their home is associated with the market and tax assessment value, which just isn’t the case,” she said. “With the increase in construction costs we’ve seen over the past decade, it’s particularly important to ensure these increases have been accurately reflected on your policy.”

Zorn also said when buying an insurance policy, homeowners have a tendency to get hung up on cost when they should be focused on the amount of coverage to ensure they are protected.

“As the cost of living continues to increase, many homeowners are understandably concerned about the cost of their policy and, in many cases, this becomes a major factor in the decision-making process,” says Zorn. “It’s important to view home insurance as an investment in protecting one of their largest assets.”

Lastly, Zorn said understanding how insurance claims are settled for loss or damage to properties is important and can differ between carriers.

“Policies specify how the property will be valued – usually either replacement cost or actual cash value,” she said. “They can also include specific conditions on how the property can be replaced or repaired as well as penalties that may apply if the property is not insured to its full value.

“It’s important that you understand what type of insurance you’re purchasing to avoid unnecessary penalties.”


Just Posted

Visions Gala attendees step up to raise $1M for Victoria hospitals

Money goes towards purchasing critically needed imaging equipment

Escaped Metchosin inmate sentenced to additional year tacked on to 14-year sentence

Man escaped from William Head Institution arrested days late in Esquimalt

Vancouver Island business awards nomination deadline looms

Nov. 22 deadline for nominations in 17 categories

Two Sidney seniors struck by vehicle with foggy windows in marked crosswalk

Driver fined for failure to yield, limited visibility caused by foggy windows

Cold, stormy winter forecast across much of Canada, The Weather Network predicts

In British Columbia temperatures will be slightly above normal and precipitation will be just below normal

B.C. pushes for greater ‘transparency’ in gasoline pricing

Legislation responds to fuel price gap of up to 13 cents

B.C. woman ordered to return dog to ex-boyfriend for $2,000

After the two broke up, documents state, they agree to share custody of the dog, named Harlen

B.C. petition calls for seat belts in new school buses

Agassiz bus driver collects 124,000 signatures in support

Duncan man gets suspended sentence in Teddy the dog cruelty trial

Joe also gets lifetime ban on owning animals

Campbell River RCMP officer assaulted during traffic stop

Officer expected to make a full recovery; had been conducting impaired driving investigation alone

BC SPCA seeks help after senior cat attacked by dog twice

Nine-year-old tabby named Meow Meow will need her front leg amputated

Abbotsford police chief mulls more enforcement of homeless lawbreakers

‘When all else has failed we have to hold people accountable,’ Police Chief Mike Serr tells council

Most Read