7 things to consider when you buy travel insurance

While it's not as exciting as choosing your hotel, or deciding which excursions you want to add on to your holiday, making sure you have adequate travel insurance for yourself and your family may be the most important decision you make.

Credit cards and travel agents offer insurance packages, but it's important to have a thorough discussion about where you're travelling to and what you're planning to do, to make sure you have the right coverages in place. Here are 7 reasons why you should purchase separate travel insurance:

1) Anytime, anywhere coverage—Not just your flight, not just a hospital stay…travel insurance protects you on your trip at any time and at any place. This includes medical and family emergencies, travel delays or theft.

2) Provincial health care only goes so far—The provincial government health care plan provides only limited coverage for medical treatment and hospital costs outside of Canada—ambulance services, emergency dental treatment and prescription drugs may not be covered by some provincial health insurance plans.

3) High-risk activities—There's nothing better than learning something new while on holiday, like scuba diving in Hawaii. But check your policy before you book that lesson, or agree to learn from your new friend you met at the beach. Some activities won't be covered unless they're conducted by a company accredited by a known organization in that sport.

4) Medication change—If you've had a prescription change for a medical condition—either increased, decreased, started or stopped—an insurer will consider you to have an "unstable medical condition" for which your treatment is changing. Consult the fine print for the time period after which the insurer will cover you for travel.

5) Destination coverage—Many destinations are experiencing political upheaval. Check the policy to discover what the guidelines are for determining if your destination falls into that category.

6) Unstable medical condition—Policies may not cover a traveller if they are travelling within a certain time period between a medical event, such as having chemotherapy treatment or heart surgery.

7) Rental car protection—If you'll be renting a car at your destination, you want to make sure the vehicle, your belongings and all passengers have adequate coverage.

Vacations can be expensive—not only do you want to protect your health, you want to protect the investment you're making in your holiday. You can speak with one of our advisors at London Drugs Insurance Services to make sure you've considered every contingency, and can have complete peace of mind for your vacation. Visit LD Insurance at http://www.ldinsurance.ca/insurance.aspx#travel to get started!

Surprising (and little known) exclusions in many travel insurance policies

So you read our blog post from Nov. 25th and you understand the need for travel insurance, but what you may not know is that your policy may not cover you in all situations. For example, are you covered if you’re injured while scuba diving or bungee-jumping? Can you be reimbursed for that elective dental work or surgery you have planned? People are often surprised by some of the things they assume will be covered, but actually aren’t.

• One of the biggest surprises tends to be the alcohol, drugs or medication exclusion - if you happen to have a few too many drinks, stumble off a curb and break your ankle, your hospital costs will probably not be covered. Specifically, the wording states that there will be no payment for injury directly or indirectly caused by an insured person’s abuse of or intoxication due to the above substances.
• And what if you’re injured while scuba-diving – does your insurance cover you? Well, it depends. If you’ve been properly trained and are certified by an internationally recognized and accepted program (like NAUI or PADI), then you most likely will be covered. If you’re not certified though, don’t count on having any related medical costs paid for by your travel medical insurance. 

I’ll touch on bungee-jumping and other scenarios in the next article. Any other specific situations you’re wondering about? Leave a comment below and we’ll respond in future posts. Stay tuned for more in this series...

Written by Derek F.
Insurance Services Manager, New Westminster London Drugs

The real cost of saying 'No'

I sell a product that most of my clients won’t use. Every day I take money from people in exchange for a promise from me and the companies I represent – a promise of restoration – basically that if you experience a financial setback under certain circumstances you will be restored to the financial position you were in before that disaster occurred (stick with me here, it gets more interesting).

The majority of people who turn their hard-earned money over to me in exchange for this promise never experience such a loss. Think about that. They pay but get no material object or physical property in return. So, when people pay for years and years and seemingly get nothing for it, some become embittered about the insurance transaction and the industry in general, and begin complaining about how much they’re paying.

I completely understand this by the way. I mean, I’d rather pay $100 for something I’m not going to use rather than $200, if I’m forced to buy it at all.

So what happens? People search out the cheapest coverage they can find. The decision to buy becomes based solely on whose price is the lowest. Often, the differences only become evident when it comes time to make a claim. Have you ever had to make a home insurance claim? Ever had your home damaged and discovered you did not have sufficient coverage?

Imagine for a second this scenario – your sewer backs up and there’s three inches of black water in your recently re-finished basement. You submit a claim only to find out that you’re not covered for this because you opted to save the $10 premium.

Or, let’s go future-tense here – The Big One is coming, we all know it. You decide that $40 per year is too much to pay for earthquake coverage for your condo or tenants package. Guess what happens when there’s a 7.0 nearby and your house starts rocking? All those broken dishes, toppled LCD and Plasma TV screens, smashed bookcases – none of it will be covered by your insurance policy.

If you’re a home owner and see cracks in the walls and ceilings, broken pipes etc., you’ll be concerned with the possibility of structural damage to your home. Again, if no earthquake coverage was paid for there will be no money from the insurance company to pay for these repairs. (Earthquake coverage for homeowner policies does cost more, depending on home values).

Bottom line (though it’s a tired cliché), you get what you pay for. That doesn’t mean you need to get the most expensive policy you can find either. You just need to make sure you know where the gaps in your coverage are and consider the effects of declining the coverages that would fill those gaps. (My Dad used to remind me all the time that you can choose your actions, but you can’t choose the consequences of those actions – discuss).

So. Now what?

You’re not an ‘Insurance Professional’ and may not know where to start or who to trust. Maybe you’ve put off the idea of home insurance because you think insurance companies just want your money and never actually pay out claims.

Or maybe you’re like I was before I ever bought a policy of my own - I found the whole application process overwhelming so I kept procrastinating, congratulating myself at the end of every month that went by and I’d kept that premium in my pocket. Each day that passed without disaster occurring enabled that once-pressing need for insurance to quietly fade into the background…

That works for a while - until your best friend’s mom loses her house in a fire. Or you hear a story about a relative who didn’t have insurance and had their dishwasher flood their kitchen and damage the neighbour’s place downstairs. The majority of first-time applicants that I see are either those who are buying their first condo, or individuals who’ve heard too-close-to-home stories of financial hardship caused when someone they love didn’t have adequate insurance. All of a sudden it becomes much easier to visualize ourselves in the same predicament.

Once you’ve made the decision to get started, don’t just walk into an insurance agency and HOPE the person behind the counter knows what they’re doing. I can tell you this sad-but-true fact: not all insurance agents are capable of correctly issuing a home insurance policy.

Find someone with a demonstrated ability to ask the right questions, explain the coverage in a manner you understand, provide the right information and arrange the proper coverage. You want to leave their office feeling like, “Wow, that person really knows what they’re doing – that was a great experience.”

How do you find that individual? Talk to your friends and do some research. Ask people you trust about their experiences, read up on the industry and do some homework. Don’t give up because it seems like too much work – it’s too important a subject to ignore. Losses like this do happen every day, and you can’t arrange for insurance after you experience a loss.

If you’re ready to begin having this conversation now, contact me at dfeswick@londondrugs.com for an explanation of our process, and to find out how much it might cost to insure your home.

Written by Derek F
Insurance Services Manager, New Westminster London Drugs

Safeguarding your vehicle during holiday shopping season

Ever had your car broken into? 

I can tell you it’s a terrible feeling when you’re standing outside of your car looking in, and you can see that someone has forced their way into your vehicle and taken things you worked hard to pay for.

Shock quickly turns to anger, irritation, confusion (who do I call? What do I do now? WHY would someone do this to me?).

According to the Vancouver Police Department’s website, there were 5729 thefts from vehicles from January to the end of September this year – that’s an average of more than 21 cars per day being broken in to. How can you minimize your chances of being a victim, and if you happen to become one, what are your options for recovering the value of stolen goods?

Especially at this time of year thieves are on the lookout for vehicles with lazy or forgetful owners. Buying bags full of loot and leaving it in the backseat while you continue your shopping makes your car a giant target (and don’t think that laying a jacket over the bags fools anyone)! If you must, lock them in your trunk out of sight. Have someone accompany you to your car if you have lots to carry. Take your iPods & phones with you, and remove the stereo faceplate for goodness sake - it shows potential thieves that you are conscious of what is left in your car, and that they should move on to easier targets.

What about making a claim? Can you make a claim for contents stolen from your car? ICBC will cover damage to the vehicle if there are signs of forced entry and if you’ve purchased optional Comprehensive coverage, but they won’t cover your belongings at all.

A surprisingly little-known fact however, is that many home policies DO provide this kind of coverage, up to certain limits. Whether you are renting or own your home, this coverage should be included in your Tenants, Condo and Home policies (you DO have home insurance right?). Check with your London Drugs Insurance specialist to be certain of the details surrounding this.

Be safe, be smart and enjoy the season!

Derek F.
Insurance Services Manager - New Westminster London Drugs

What to do after a Car Crash

We all know that accidents happen, but what you may not know is what to do after they happen.

Should you ever find yourself in the unfortunate situation of being in a car accident, our friends at ICBC has compiled a great five (5) step list on what you need to do:

Step One:
If anyone is injured, call 911.

Move the vehicles off the road if it’s safe to do so.

Avoid discussing who’s at fault for the crash

Step Two:
Get details.* Record the following for all the vehicles and drivers involved in the crash:

• Driver’s name, driver’s license no., province/state, and contact info
• License plate and year, make and model of vehicle
• Driver’s name and contact details
• Insurance details if the vehicle isn’t from BC

You may also need to provide this information to the police.

Step Three:
See if there were any witnesses. Record their names and contact info.

Step Four:
Describe the crash scene (if possible take photos or use the diagram below):

• What was the time, date and weather condition?
• What was the location?
• What direction were you both travelling?
• Where was your vehicle, and what lane were you using?
• Where was the other vehicle?

Step Five:
ICBC Dial-A-Claim staff are available to help 24/7:

In the Lower Mainland: 604.520.8222

Anywhere in Canada or the US: 1.800.910.4222

Translation services are available.

Written by Derek F.
Insurance Services Manager, New Westminster London Drugs