Insurance Tip of the Month                          

 Provided by Prospera Credit union Insurance

February  March  April  May  June  July

February Tip :Back To Top

VACANT DWELLINGS

Due to the high risk involved, vacant dwellings over 30 days are not insured unless prior arrangements have been made with your insurance agent.  Insurance companies will agree to continue the coverage however they can charge an additional premium, per month of vacancy, as well as excluding the following coverage(s)

• water damage, vandalism, malicious acts, freezing, sewer/septic back up, glass breakage and guaranteed replacement cost protection, if applicable

We recommend that you turn off the main water supply, unplug all appliances, drain hot water tanks and toilets as a precautionary measure and make the home look occupied to prevent an intruder from entering the home.

Most insurance companies will decline insurance on a newly purchased property that will be vacant until occupied at a future date; however, Prospera Insurance Agencies Ltd. has an insurance company who specializes in this area and we’d be happy to look at your specific case.

With the proper insurance coverage, you can live your life and not have to worry about those little things that just might happen.  Prospera Insurance Agencies Ltd. has you covered.  Contact us today for a quote.

March Tip:Back To Top

ALUMINUM WIRING

Aluminum wiring, used in some homes from the mid 1960’s to the late 1970’s, could be a potential fire hazard and difficult to insure.  Problems due to aluminum wiring expansion can cause overheating at connections between the wire and devices (switches and outlets) or at the aluminum wire splices.  The connections can become hot enough to start a fire without ever tripping a circuit breaker. There are now preventative repair methods available to correct this problem.

Insurance companies now require an inspection by a qualified licensed electrician written on formal company letterhead prior to agreeing to insurance coverage.  It is recommended that the seller of the property have an inspection completed to present at the time of an offer as this will speed up the insurance process. 

April Tip: Back To Top

 60 Amp Electric Service/Knob & Tube

Most homes today have a 100 or 200 amp service however some still have only 60 amps, particularly older homes.  Insurance companies feel sixty amps is not enough to service a home with an electric stove, oven, washer and dryer, air conditioner, computers etc. Consideration is sometimes given if the home is under 850 square feet and only two occupants, along with an electrical inspection by a qualified, licensed electrician or Power Chek. 

Insurance companies may be given a time line  to have the service upgraded to minimum 100 amp service.   Knob and Tube Wiring comprises insulated wires clamped on 2 pieces of porcelain knobs; each conductor carried separately.  Hollow porcelain tubes carry the wires through beams and other combustible materials. This type of wiring is not acceptable by most insurance companies; however, Prospera Insurance has an insurance provider who specializes in this area. An electrical inspection by a licensed qualified electrician on formal letter head or by Power Check would be required. 

You may visit the following website which will give you more in depth information on 60 amp and Knob & Tube wiringhttp://www.integrityhomeinspection.ca/index.php?pagename=60%20Amp%20Service or Power Check, http://www.powercheck.ca/

May Tip:Back To Top

POLYBUTYLENE PLUMBING

For thousands of homeowners, polybutylene plumbing has become a recurring nightmare.  Polybutylene is a form of plastic resin that was used extensively in the manufacture of water supply piping from 1978 – 1995. The material was less expensive and easier to install and was once called “the pipe of the future” with copper being the second choice.  The piping is typically gray or white in color with a dull finish and can be found near water heaters, running across the ceiling in unfinished basements, and coming out of the walls to feed sinks and toilets.  Some insurance providers will not insure homes with this type of plumbing that have had a history of water damage problems, or have not been crimped with copper fittings to prevent separation of the pipes.  You may visit the following website which will give you more in depth information on Poly B plumbing http://www.polybutylene.com/poly.html

JuneBack To Top

FIRE RESTRICTIONS

Summer is approaching and so it the threat of forest fires in our area.  Insurance companies do not allow insurance agents to bind coverage on any risks within 25km of an area either under evacuation alert or under notice of potential evacuation. Insurance Agents are permitted to bind coverage 30 days ahead of completion date; we recommend your client arrange insurance coverage within this time line if the home is not within an alert area in the event a fire ensues.  You may visit this website which provides updates on current wild fires,  http://bcwildfire.ca/Situation/

 JulyBack To Top

Kelowna city council approved a new bylaw to deal with marijuana grow-ops and methamphetamine labs.  The new bylaw will allow building inspectors to declare buildings unsafe and prevent people from occupying them if an electrical, water or natural gas meter has been disconnected or bypassed, venting systems exhaust into the building or where toxic substances commonly used in grow-ops or drug labs are located; buildings could be declared unsafe if high levels of mould are present.  Under the old bylaw, the city did not have the power to prevent a homeowner from renting out such a place to someone before fixing the problem.  Obtaining insurance coverage is not possible unless the home has been inspected by the City, proper permits have been obtained, electrical inspections and air quality control tests have been completed and an occupancy permit has been given by the City which will confirm all required testing has been completed. Obtaining insurance on revenue properties purchased by absentee landlords can be difficult because of the risk involved; however, Prospera Insurance has an insurance company who specialize in this area.

Here are a number of indicators you could share with your clients who are purchasing rental properties which are common indicators of a marijuana grow op:

 1)  rarely does anyone appear to be at home

2)  visitors come and go at odd hours, entering/leaving the home quickly often through the garage and only for brief periods of time

3)  they avoid contact with neighbors

4) windows are kept closed and covered to conceal activities inside condensation may be present on window panes

5)  sounds of construction or electrical humming from the equipment

6)  evidence of digging in the soil around the hydro meter may indicate an electrical by-pass

7)  strange odors from the home

8) untidy property, unshovelled snow, uncut grass etc 8)) guard dog on property.

Back To Top

For questions on what else you may need before buying or selling a home and purchasing insurance, visit Prospera Insurance Agencies at:

www.prospera.ca

250.979.6420 or 1.877.979.6420

Stacey Wilson

swilson@prospera.ca

250.979.6423

Toni Lopez

tlopez@prospera.ca

250.979.6422