Most Common Insurance Claims in Canada
Each year, insurance companies pay out significant percentage of their revenues in claims. According to the Insurance Bureau of Canada, in 2017, that figure was 60 percent. Auto insurance claims account for the biggest piece of that pie, but personal property loss, liability and other claims all take a bite too.
If you’ve ever wondered where your greatest risks lie, the law of averages suggests your odds of making a specific type of claim are generally in line with the rest of the insurance consumers out there. Below are a few examples of where insurance companies are most often paying out claims.
Home Insurance: Water Damage
Water damage payouts account for nearly half of all home insurance claims in Canada, though individual estimates vary by a few percentage points depending on the insurance company. Bathroom leaks, toilet blockages and showers that don’t drain, corroded pipes, and aging fixtures can all lead to insurable losses. Of course, there’s also roof leakage, flooding, and plumbing damage.
Auto Insurance: Health Care
Anyone who has been in a car accident knows it takes a toll on their physical health. Though some medical expenses for a person injured in a crash are covered by provincial health care plans, insurers absorb huge costs when it comes to patient rehabilitation – roughly $2 billion annually, according to the Insurance Bureau of Canada.
That figure is the total cost to insurers, including the accident benefit provisions as well as legal settlements and government levies.
Home Insurance: Hail
Hail isn’t quite snow, isn’t quite rain, and can cause real damage to your home. Hail is becoming a bigger and bigger factor in insurance payouts, especially as the result of severe weather events. Back in 2013, a series of hail events in southern Alberta, Calgary and Edmonton resulted in $732 million in insurance claims.
Home Insurance: Trees
A tree-lined property in beautiful; until something ends up broken. Insurance typically covers damage from wind, including flying debris and tree branches. It is just another example of how risks abound – and you may not even think too much about them.
The Catch-All: Other
The number of risks that exist on the road or at home are almost uncountable. As a policy holder, your coverage may include personal liability for such unpredictable risks as dog bites or a neighbor slipping and falling on your property. Not knowing what may happen is a good reason to play it safe and make sure you fully understand what your covered for by the policies you currently hold. So, if you’re a first-time homeowner, a new driver, or a seasoned insurance consumer, you can learn more about your options by speaking with one of the brokers or CSRs at DPM Insurance Group. We take the time to make sure you understand what will and won’t be covered in the event of a loss. Your security – Our responsibility.