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Monthly Archives: October 2015

AirBnB to Expand Insurance Coverage

AirBnB’s insurance coverage is a topic that has been debated by many insurance experts. We’ve weighed in on it ourselves here: It seems as though some of our concerns are being addressed, as AirBnB has announced that they’re rolling out new insurance coverage levels in Canada to support the host properties.

The new insurance will add liability insurance, covering claims against the host in case of a guest getting injured at the property or damage caused by a guest that affect surrounding properties (such as a burst pipe causing water damage to a neighbouring apartment). This additional coverage will come at no extra cost to the host.

While such claims against hosts are rare, with over 33,000 AirBnB listings in Canada it’s important to make sure that measures are taken to avoid costly mistakes, and it’s a great reminder about the importance of having proper business insurance.

How Recent Weather Trends Affect Your Insurance

Are you wondering why your insurance premiums are set the way they are? If so, then you’re not alone. There are many factors that can have an effect, but according to insurance officials one of the more notable factors these days has been the weather. There has been a higher than normal number of extreme weather events and those have had a noticeable effect on insurance policies.

Weather events such as ice storms, cold snaps and flooding have been occurring with a higher than normal frequency across the country, especially in Manitoba, Alberta and Ontario. But are these patterns affecting the whole country or just those provinces? Here’s where the insurance industry is divided. Some experts argue that insurance premiums are pooled for the whole country, and when there is a loss in that pool in one part of the country then other parts feel it as well. Others argue that premiums are community-specific, and a disaster would only affect the premiums in the community that suffered the loss. It’s hard to say specifically what is causing these changes, as there are several factors affecting premiums, both local and international.

Either way, there is no doubt that these weather patterns are increasing claims. Data from the Insurance Bureau of Canada shows an increase of 72.3% between personal property claims in Manitoba from 1995 to 1999, and from 2010 to 2014. A notable increase in claims can certainly affect premiums across the board.

If you have any concerns about your premiums then make sure you speak to your broker or company agent, who may have more information about coverage in your area.

What Will the Self-Driving Car Mean For Auto Insurance?

The self-driving car; it sounds like science fiction, but the real thing seems to be approaching fast, and at a remarkable speed. Both Google and Ford are hard at work developing the technology, and many of the safety features that will be used to prevent collisions in these cars are already in use in cars today. But if driver error is removed from the equation, what will that mean for Canada’s auto insurance industry?

Some might wonder if it might remove the need for auto insurance altogether. After all, if the driver is not at fault, that would mean that any liability for the collision would be on the car manufacturer, some would say.

Others have argued that it won’t lead to the removal of auto insurance, but that the companies would have to adapt. It wouldn’t be the first time that a new technology has led to a shift in the way a company does business.

Regardless of whether or not the self-driving car ever becomes a reality, or how fast it arrives, it is a sure thing that this topic has people talking. Depending on how this develops, it will be interesting to see what changes will be in store.