Exceptions to home and auto insurance coverage explained

Exceptions to home and auto insurance coverage explained

The lives you lead at home and on the road are rarely simple. So, it’s no wonder the insurance you buy to help protect them can sometimes be confusing. That’s why it’s a good idea to talk with an insurance broker [DL(1] before purchasing either. Both may contain exceptions you weren’t aware of.

You insure for unexpected events versus predictable ones — an important difference.

While we have a lot of reasons on why we need home insurance, auto insurance is equally important as well. In short, insurance might pay for repairs or replacement when something unforeseen happens.

For example, say an old roof hasn’t been maintained for years and is missing shingles. If the melt from a heavy snowfall leaks into the attic causing damage to walls and ceilings, it may not be covered for water damage. That’s because the damage was foreseeable. Likewise, if your car tire blows and it seemed to be balding, the insurance may not cover the replacement or repairs, because it was predictable.

Let’s look at the specifics, starting with home insurance.

Home insurance generally provides coverage for theft, but valuables may not be covered adequately. If you have expensive jewellery, costly collectibles, or artwork, look closely at your policy. You may need extra coverage or even a different insurance product.

Damage from earthquakes is likely excluded too. Depending on where you live, it’s an extra you should ask about when shopping for insurance. Our Home Insurance Blog entry, Be prepared for anything talks about all these issues in greater depth.

Auto insurance defines clear exceptions too.

Auto insurance exists to provides coverage for responsible drivers against unexpected events. So, it does not cover dangerous driving or criminal behaviour, such as damage sustained from street racing or stunt driving.

The same goes for intentional collisions. (There’s no coverage for road rage[DL(3] .) Driving under the influence of drugs or alcohol — aka DUI — is another violation and will likely not be covered.

Depending on what you drive and where you live, you may want to consider comprehensive insurance protection against theft. If you park in a spot not visible from the street, say in a garage, you’ll probably pay less. Any valuables you keep in the car that go missing — say, your stereo, navigation system, wallet, or jacket — are probably not covered. However, they could be covered under your property insurance. As we said, examine the specific details.

Some of us have a side hustle these days. Ridesharing and deliveries are great ways to pay off loans. But such extra driving also means extra wear and tear on your vehicle. Remember, your insurance doesn’t cover mechanical breakdowns or those 12,000km/12-month routine maintenance visits to your dealer. Plus, you may need different insurance to cover that drive-sharing side hustle. Check your policy.

Get the right combination of PC® Insurance Home & Auto Insurance and you can save up to 35%.

Don’t forget. PC® Insurance rewards you for your business. Pay premiums with your PC Financial® Mastercard®, and you’ll earn 20 PC Optimum™ points for every dollar spent. Learn more here. Plus, when you buy both your home and auto insurance from us, you can save up to 35%^† on insurance.

Try it out. Get a combined quote today.

General information not about PC® Insurance home and auto coverage is provided for your reference and interest only. The above content is intended only to provide a summary and general overview on matters of interest and is not a substitute for and should not be construed as the advice of an experienced professional. PC® Insurance does not guarantee the currency, accuracy, applicability or completeness of this content.

^†By combining the following discounts from participating insurers, as follows: (i) the discount offered to PC Optimum™ members in good standing off the applicable insurer’s base premium excluding any endorsements or extended coverages (ii) the bundled discount for purchasing both your home and auto insurance with the same insurer through PC® Insurance and (iii) the claims-free and convictions-free discounts if you qualify, subject to regional availability. Total savings of up to 35% is in comparison to the base premium excluding any endorsements or extended coverages from the participating insurer you would have paid if these discounts were not applied. Valid only for new customers or renewals; does not apply to current policies.