Insurance is a contract called an “insurance policy”. This contract protects you from financial loss. You pay premiums into a fund that spreads out the risk. In return, the insurer agrees to pay you for financial losses or damages caused by certain hazards listed in the policy.
What are insurers ?
Insurers are companies that sell insurance and are responsible for paying insurance claims.
Who are insurance intermediaries?
Insurance intermediaries are people or companies that help you buy insurance.
They act as a bridge between you and the insurance company. Intermediaries include:
- Adjusters: Adjusters investigate claims and recommend payments. They also negotiate settlements.
- Agents: Agents are responsible for explaining the policy. They act on behalf of insurers to:
- negotiate;
- sell insurance; and
- share policy documents.
- Salesperson: An agent can hire a salesperson on salary without commission. They collect and receive premiums. They cannot negotiate policy terms and are not allowed to sell:
- life insurance; or
- accident and sickness insurance.
What are the responsibilities
Both the customer and those selling insurance have responsibilities.
Customer responsibilities:
- Know what you need
- Give accurate and up-to-date information to your insurer
- Ask questions to understand your coverage
Insurance seller responsibilities:
- Explain the policy and coverage clearly
- Treat customers with respect
- Handle claims and complaints in a timely manner quickly
- Protect customer privacy
Visit the Insurance Bureau of Canada for more on consumer rights and responsibilities.
What to ask your insurance provider
- When does my coverage come into effect?
- When does it end?
- What specifically does it cover?
- What does it not cover?
- Are there other coverages that could be included?
- Does my policy include optional coverage or endorsements?
- What happens if I no longer want the policy?
- Are there costs if I want to cancel?
- How do I cancel?
- Are the premiums guaranteed to stay the same, or will they change?
- What would cause them to change?
- Are the premium amounts firm, or are they estimates?
There are many types of insurance offered in the Yukon. They are split into 2 main licensing categories.
Life insurance and Accident and Sickness insurance
Life insurance is usually paid out when a person dies.
Accident and sickness insurance is paid out when a person:
- has an illness;
- is injured; or
- dies from an accident.
It includes disability income insurance and accidental death or dismemberment insurance.
More information on Life Insurance and Accident and Sickness insurance is available on the Canadian Life & Health Insurance Organization website.
General or “Property and casual” insurance
This insurance includes:
- Aircraft insurance
- Automobile insurance
- Boiler and machinery insurance
- Credit insurance
- Employers liability insurance
- Endowment insurance
- Fidelity insurance
- Guarantee insurance
- Hail insurance
- Legal expense insurance
- Liability insurance
- Marine insurance
- Mortgage insurance
- Property insurance which includes residential and commercial
- Public liability insurance
- Surety insurance
- Title insurance
Flood Insurance
Some insurance companies offer overland flood insurance. This covers loss and damage from overland freshwater sources, like heavy rain or overflow of lakes or rivers. It also includes groundwater coming into the home due to the water table rising.
Not all homes are eligible for overland flood insurance.
Overland water insurance or “flood insurance” is typically a separate category of insurance from basic water damage insurance. Basic water damage can include burst pipes, sewer backup, or sump pump failure.
Wildfire insurance
Standard property insurance usually covers fire damage and evacuation costs. If you cannot return home after evacuation due to damage, costs may be covered.
Preparing for disaster events – understand your insurance coverage
- Property owners, homeowners and business owners should contact their insurance provider to understand their coverage and what options are available.
- Different insurers offer different levels of coverage. If your coverage does not meet your needs, check with other providers.
- Flood or wildfire damage to vehicles is usually covered by your auto insurance. Review your policy with your provider to make sure you understand your coverage.
- Being prepared helps reduce losses from floods and wildfires. The Insurance Bureau of Canada has some helpful tips.
- Know what questions to ask your insurance professional.
Preparing for an insurance claim
- Contact your insurance provider as soon as possible after the event.
- Take photos of the damage and note the date and location of each photo.
- Write down when and where the damage happened.
- Keep receipts for expenses and record the hours and work done to protect your property.
- Record hours worked what work was done.
- Record equipment usage and emergency repairs made.
Disaster Financial Assistance program
The Disaster Financial Assistance program in the Yukon helps people recover from natural disasters. It may help cover the cost of uninsurable losses to property.
Learn about the Yukon Disaster Financial Assistance program.
In the Yukon:
- Auto insurance is mandatory.
- You buy auto insurance from a private insurer, not from the government like in some other provinces.
- We have tort-based liability rules and use an at-fault insurance model. This means the insurer decides who is at fault before paying benefits. If you are injured, you can take the person who caused the injury to court.
The Insurance Bureau of Canada has more information on types of coverage. They also have information on other insurance options and the factors that determine the cost of your insurance premiums.
Understanding your options
Talk to your insurance provider to understand options for auto coverage. Here are some questions to ask:
- Do I have basic or extended insurance?
- What options are available?
- What is my coverage if I’m driving outside Yukon?
- If I’m in an accident, what is covered in terms of medical expenses for myself and others?
- Are there any deductibles that might be available to reduce my insurance costs?
The insurance you need will depend on your living situation . Homeowners, condo owners, and renters each need different types of coverage.
Keep in mind the risks of where you live, like floods and wildfires, when choosing insurance for your home or property.
Homeowners insurance
Homeowners insurance covers property, belongings, and personal liability for you and your family.
Keep your insurance provider updated about changes to your home that could affect your coverage. Changes include:
- acquisitions of valuable possessions in the home;
- changes to the home or property, such as renovations or additions;
- changes in use, such as home-based businesses; and
- renting or leasing the property.
Condominium insurance
Condominium insurance includes the corporate policy and the unit owner policy.
The corporate policy covers:
- buildings;
- common area;
- corporate assets; and
- liability due to the corporation’s actions.
The unit owner policy covers:
- personal property;
- liability;
- living expenses; and
- individual improvements.
You can get optional coverage for things like flood insurance, sewer backup, or overland flooding.
Ask your insurance provider what the corporate policy may or may not cover.
Tenant and content insurance
This usually covers your personal property and personal liability.
Some landlords may require tenants to have certain insurance before renting. They would write this into the rental agreement.
There are different types of business insurance for:
- commercial property;
- commercial vehicles;
- business interruption;
- home businesses;
- professional liability; and
- cyber insurance.
Considerations
When choosing insurance for your business, think about the following.
Types of coverage
Your coverage can be:
- for specific types of damages or causes of loss, also known as “named perils”; or
- an “all risk” policy that covers everything except what is specifically excluded.
Deductibles
Deductibles are the costs you are responsible for when making a claim. Choose a deductible that balances your premium costs with the risk of paying expenses yourself.
Level of coverage
Make sure you have enough coverage but not too much. Your insurance provider can help you decide:
- if your coverage matches the value of your property;
- how much liability coverage you need for a lawsuit; and
- what past losses mean for your coverage.
For questions about insurance, email insurance.plra@yukon.ca, or phone 867-667-5111. Phone toll free in the Yukon 1-800-661-0408 extension 5111.