Archive for category: Blog Content

Protect your rental property with comprehensive insurance for landlords; learn how to safeguard your investment.

Owning a rental property can be a rewarding investment. However, being a landlord also comes with unique responsibilities, especially regarding insurance. Whether you are renting out a single-family home, a condo, or a multi-unit property, it is paramount that you adequately protect your investment. Regarding insurance for landlords, we recommend working closely with a licensed broker who understands the intricacies of rented dwellings.

Insurance for Landlords – Reviewing Your Policy with a Licensed Broker

The first step in safeguarding your rental property is to review your insurance policy with a licensed broker. A broker can help you understand the specific coverage options and tailor a policy that meets your needs. Rental property insurance isn’t a one-size-fits-all solution. The requirements for coverage can vary depending on factors like the type of property, the number of units, and the occupancy status.

Your broker will walk you through the different components of your policy so you clearly understand the details of your coverage. They can also provide valuable advice on additional coverage options that may be beneficial, such as protection against loss of rental income or coverage for legal expenses in case of tenant disputes.

Understanding Replacement Cost: Protecting Your Investment

Replacement coverage is one of the most critical aspects of rental property insurance. This ensures that in the event of a covered loss, you have enough coverage to rebuild or repair it to its original condition without taking a hit on your finances. However, determining the correct replacement cost can take time and effort.

Many landlords make the mistake of insuring their property based on its market value, which doesn’t account for the cost of rebuilding. Market value can fluctuate based on location and real estate trends, but the cost to rebuild your property remains relatively constant. A licensed broker will help you calculate an accurate replacement cost to ensure complete coverage in the case of significant damage.

Do You Need to Insure Appliances?

Another common question landlords face is whether they need to insure the appliances in their rental units. The answer largely depends on who owns the appliances and their value. If you provide the appliances as part of the rental agreement, including them in your insurance coverage is wise. This typically falls under contents coverage, which protects against loss or damage to your provided appliances.

However, if tenants bring appliances, they are responsible for insuring them. A broker can help you understand the nuances of content coverage and ensure that any valuable appliances you provide are adequately insured.

Rental Income: Safeguarding Your Earnings

Rental income is one of the most attractive aspects of owning a rental property but also needs protection. What happens if your property becomes uninhabitable due to a covered loss, like a fire or flood? Without the proper insurance, you could be left without rental income while the property is being repaired.

Loss of rental income coverage can be added to your rental property insurance policy to protect against this risk. This coverage ensures that you continue to receive rental income even if your property is temporarily uninhabitable due to a covered event. It’s an essential safeguard for landlords who rely on rental income to cover mortgage payments and other expenses.

Discuss Occupancy Rules with Your Broker

When renting out your property, it’s essential to understand how occupancy affects your insurance coverage. Most insurance companies have strict rules about how many unrelated individuals can occupy a rental property. Typically, policies only cover a maximum of two (or less common up to 3) unrelated individuals living in the same unit. If your property is rented to more than the maximum unrelated tenants that your specific insurer allows, your insurance may be void, leaving you unprotected in case of a claim.

Before renting your property, discuss the occupancy rules with your broker to ensure your policy remains valid. If you plan to rent to more than two unrelated individuals, your broker can help you find a policy that accommodates this arrangement or give you valuable advice on the necessary steps to stay compliant.

The Importance of Regular Policy Reviews

As a landlord, your insurance needs may change over time, whether due to property upgrades, changes in occupancy, or shifts in the rental market. Regularly reviewing your insurance policy with your broker is crucial to ensure your coverage meets your needs.

At Kelowna Valley Insurance, we’re here to help you navigate the complexities of rental property insurance. Our licensed brokers have the expertise to guide you through every step, from calculating replacement costs to ensuring your rental income is protected. Contact us today to schedule a policy review and ensure your rental property is fully protected.

CONTACT US to help you rest easy knowing that your investment is secure.

Safeguard your home from devastating Kelowna wildfires. Learn essential tips to be prepared and stay protected.

Wildfire season looms once again in BC and in our region. With evidence of small Kelowna wildfires already reported at this point in the season, residents of Kelowna need to understand the importance of being prepared.

The Insurance Bureau of Canada (IBC) is urging homeowners to get their homes ready for wildfire season is a timely reminder of the potential risks we face. With the devastation of the Traders Cove during the McDougall Creek wildfire of August 2023, preparedness is critical.

Rob de Pruis, national director of Consumer and Industry Relations at IBC, states, “As reported by the BC Wildfire Service, there are more than 90 active wildfires across the province, with many still burning from last year’s record-breaking season. The 2023 wildfire season was the most destructive in British Columbia’s history, and 2024 has the potential to be another intense wildfire year.”

Here’s how you can help ensure your home is wildfire-ready:

Year-round preparedness

• Install and Maintain Alarms: Smoke and CO alarms are your first line of defence. Ensure they are installed, dust-free, and equipped with fresh batteries. Regular testing and replacement every 10 years are crucial for optimal performance.
• Emergency Plan and Kit: Develop a comprehensive evacuation plan for your family and pets, and practise it regularly. Additionally, assemble a disaster safety kit containing essentials like food, water, pet crate and important documents.
• Insurance Coverage Review: Familiarize yourself with your insurance policy, including coverage details and claim procedures. Keep your policy number and insurer’s contact information readily accessible for swift action in case of damage or evacuation.

Precautionary measures for areas at high risk for Kelowna wildfires

• Home Preparation: Safeguard your home by ensuring roofs, exterior walls, and balconies are treated with flame-resistant materials. This proactive step can significantly mitigate fire risks.
• Proper Storage: Keep flammable materials such as gasoline and solvents at least 10 metres away from your home to minimize ignition risks.
• Debris Management: Regularly remove dry leaves, debris, and combustible garbage from around your property, especially if you have wood or vinyl siding.
• Space Management: Maintain a clear zone of at least 10 metres around your home by removing shrubs, trees, and woodpiles. This helps create a defensible space that can deter wildfire spread.

Stay Informed and Vigilant

• Weather Monitoring: Stay abreast of weather updates and fire danger ratings from local and provincial sources. Timely information empowers proactive decision-making.
• Adherence to Bans and Restrictions: Obey fire bans and restrictions to prevent accidental ignitions. Your cooperation plays a crucial role in mitigating wildfire risks within our community.

With severe weather events causing substantial insured losses, the need for climate resilience is more pressing than ever. Proactive measures can significantly reduce the impact of wildfires on homes and communities. We can better protect our families and properties from potential devastation by implementing the recommended steps and staying vigilant throughout the wildfire season.

Remember, being prepared today ensures having a safer tomorrow. Is your home wildfire ready? Kelowna Valley Insurance is here to help you safeguard your home against wildfire risks with comprehensive coverage and expert guidance.

CONTACT US today to learn more about our insurance solutions tailored to your needs. Stay safe, stay prepared!

Understand how we determine the replacement value of your home. Ensure your property is protected with the right insurance coverage.

The current Canadian real estate market is a volatile one. Right now we hear constant chatter about bubbles, corrections, and even crashes – unsettling to say the least. In this climate how can you possibly know the replacement value of your home in the event of a loss. Fortunately, that’s what we’re here for!

When it comes to home insurance, replacement value is one of the crucial factors that determines your coverage and premiums. But how do insurance companies determine this value? To help you better understand, let us dive into the key factors and methods that we use to calculate the replacement value of a home.

Replacement value – what is it?

Before we delve into the details, it’s important to understand the definition of replacement value. Also known as the replacement cost, replacement value is the estimated cost to rebuild your home from the ground up if it’s completely destroyed or severely damaged. This cost includes materials of similar like kind and quality, labour, and any additional expenses necessary to recreate your home exactly as it was before the loss.

Factors that influence replacement value

There are a number of components included to accurately assess and determine how much it will cost to replace your home. They include:

Square footage and structure: The size and structure of your home play a huge role in determining the cost of your home’s replacement. Not surprisingly, bigger homes with more intricate design details will typically have higher replacement costs.
Materials: The type and quality of materials used in your home’s construction matter. Premium materials will result in a higher replacement cost.
Location: The cost of labour and materials can vary depending on your location. Areas with higher construction costs will have a higher replacement value.
Local building codes: Building codes can change over time. If your home doesn’t meet the current codes, ensuring that you are conforming to up-to-date standards can increase the replacement value.
Amenities and features: If you have special features such as custom kitchens, high-end appliances, and other luxury amenities, it can significantly impact replacement costs.

Methodology used to determine replacement costs

The methodology to calculate the replacement value of your home includes the careful consideration of various factors:

1. Cost estimators: Insurance companies often employ cost estimation software that factors in square footage, materials, and regional construction costs to provide a more accurate replacement value.
2. Home inspections: Insurers may conduct home inspections to assess the condition of your property and consider any upgrades or improvements that can affect the replacement value.
3. Appraisals: In some cases, an independent appraiser may be hired to determine the replacement value based on a detailed assessment of your home’s features and condition.

Why an accurate value calculation is important

Providing an accurate replacement value for your home is critical for several reasons:

1. Adequate coverage: It ensures that you have enough insurance coverage to fully rebuild your home if a disaster occurs.
2. Premium accuracy: Insurance premiums are based on the replacement value. An accurate value helps you pay the right amount for your coverage.
3. Peace of mind: Knowing that your home is adequately insured provides peace of mind in the event of a catastrophic loss.

Understanding how insurance companies determine the replacement value of your home is essential for homeowners. It’s not a one-size-fits-all calculation but rather a complex process that considers a range of important factors. To ensure you have the right coverage, it’s crucial to communicate openly with your insurance agent. Additionally, update your policy as needed and regularly review your coverage to account for any changes in your home’s value or structure.

Stay informed and proactive to protect your most valuable asset. Ensure that you have the necessary financial support to rebuild your home in the event of a disaster. Questions about a Homeowner’s Insurance Policy? Talk to us!

RV insurance in BC: your ticket to worry-free adventures, enjoying breathtaking landscapes and destinations wherever the road takes you!

Summer is here! Are you an adventurous spirit who loves hitting the open road in your RV? Yes? Well, you probably already understand the importance of protecting your valuable investment with comprehensive insurance coverage.

When it comes to RV insurance in BC, the picturesque landscapes of the Okanagan, our province, Canada and beyond attract RV-driving outdoor enthusiasts. That’s why we want to provide you with essential insights to ensure you enjoy your RV adventures worry-free. Discover how to safeguard your home away from home – hit the road with peace of mind!

Understanding RV insurance in BC

British Columbia and many other regions around Canada are dream destinations for RV enthusiasts. Our beautiful nation boasts endless stunning landscapes and exciting outdoor activities. Navigating the unique challenges of Canada requires a tailored insurance policy. At Kelowna Valley Insurance, we understand BC-specific or more rurally oriented considerations. Unique potential risks include wildlife encounters, road conditions, and weather events. We can help you choose coverage that protects against these risks.

The fact is, RV insurance is not your typical auto insurance. RVs encompass a wide range of vehicles, including motorhomes, travel trailers, fifth wheels, and camper vans. Therefore, it is vital to understand the unique coverage options and considerations that come with insuring these versatile vehicles. It’s important to speak to your broker about the different types of RVs and their insurance requirements. Before you hit the road, feel empowered that you’ve made the most informed RV insurance decisions, suiting both your needs and budget.

Prepare yourself for the unexpected! Ensure you have the right insurance coverage to enjoy nature’s breathtaking beauty in BC and beyond.

Tailoring coverage to protect your RV investment

Your RV is not only a means of transportation but also a home on wheels. As such, it requires specialized coverage to protect against various risks such as accidents, theft, and natural disasters. Your broker will discuss key coverage options. These include liability insurance, comprehensive coverage, collision coverage, personal property coverage, and roadside assistance. By customizing your insurance policy to suit your RV and lifestyle, you can safeguard your investment and enjoy your travels worry-free.

Understanding discount opportunities

Saving money on RV insurance is always a plus, and there are several discount opportunities available. Ask about potential discounts such as safe driver discounts, multi-policy discounts, and store discounts. Additionally, periodic policy reviews are important. A review ensures you know about the most current discounts and promotions offered by your insurance provider. Find out how you can maximize savings while maintaining comprehensive coverage for your RV.

Choosing the right insurance provider

Embarking on RV adventures, no matter where the scenic wonders, should be a thrilling and worry-free experience. By understanding the ins and outs of RV insurance in BC and tailoring your coverage to meet your specific needs, you can travel with confidence and protect your investment.

Choose an insurance provider that offers comprehensive coverage, excellent customer service, and valuable discounts. Kelowna Valley Insurance is here to help you prepare to explore the magnificent landscapes of BC and beyond, knowing you have the right insurance coverage to keep your RV adventures smooth and stress-free!

Does your business perform hot work? Make sure you’re covered in the face of various serious hazards and potential losses.

If we talk about the leading causes of fire in our country, among the top three reasons for mid-size industrial or commercial property losses is due to hot work activities on the premises.

For the uninitiated, hot work is any occupation that includes work with sources of ignition – welding, soldering, grinding, cutting, etc. – close to flammable or combustible materials. These include flammable gases or liquids, sawdust, and wood structures, for example. When you work with a source of ignition near these materials, which for many businesses is often inevitable, there’s a greater risk of fire or even possibly explosion.

Not surprisingly, there are inherent hazards associated with spark-producing operations. And it accounts for significant losses to and of property every year. But, the loss is preventable. There are effective safety protocols and procedures that, if in place and utilized effectively and with consistency, can help reduce the hazards significantly.

Never underestimate the hazard of one small spark!

If your business involves frequently working with sources of ignition – hot work – chances are you already have a designated area where the activities take place. Why a designated location? Because it takes but one small spark to cause devastation.

Only one spark can cause a fire that destroys equipment and property, not to mention the costly interruption of business, causing the loss of jobs and revenue. Even worse, a fire caused by a simple spark puts lives at risk. After a devastating fire, as the business tries to recover, it can lose valuable customers to its competitors in the same market. It only takes a moment for a fire to take hold, yet the damage can be overwhelmingly long-term.

Reduce the possible risks of hot work

Don’t think that a stray spark immediately turns into a devastating fire. Not at all. In fact, it will sit for hours in a hospitable, flammable environment and smoulder until it comes to life hours after your team has left for the night.

That’s when the destruction occurs unhindered.

That said, there are best practices to ensure that spark-producing activities don’t result in an unseen spark left to grow into a fire:

• Check all equipment to ensure that they are properly operational before you do any work.
• Inspect the hot work area thoroughly before any work begins. Are there flammable or combustible materials or surfaces close to the work area (walls, beams, posts, partitions, ceilings, etc.)? If so, cover them with a material that is fire-resistant and heat-insulating to prevent them from overheating and igniting.
• Check that you have fire extinguishers nearby, within easy access, and are functional.
• Use all recommended personal protective devices. They should be easy to access and available at the worksite. Train your staff on how to use them and that they are always clean and stored safely and appropriately.

Inspect the work zone for flammables and combustibles

• Keep all combustibles away from the zone of hot work as much as possible.
• If you can’t clear combustibles out of the area, cover them with fire-resistant blankets or shields. Cover or shield any equipment and gas lines in the space from stray and airborne hot debris or sparks.
• Keep the floor of the work area and surroundings tidy of any combustible materials. If the floors are potentially combustible, try to keep them damp or cover them with fire-resistant blankets. NOTE: To prevent electrical shock, don’t use water if electrical circuits are energized.
• Sparks must stay out of any ducting. Keep duct openings or other ductwork clean of combustible debris. Seal any cracks in ducts. If there are cracks in ducts, seal them. Cover any duct openings with a fire-resistant barrier.
• Clean up spilt grease, oil, or other flammable liquids.
• Keep a well-stocked first-aid kit nearby and easy to access.
• Learn about more best practices HERE.

A dedicated fire watch is critical

An appropriately and safely prepared hot work zone includes a dedicated fire watch when the spark-producing activity is complete. After any work that produces heat and sparks – welding, soldering, grinding, etc.

For the hours that follow any flammable work, assign a team member to inspect the zone and surrounding area for sparks, visible and hidden, that could settle and smoulder to ignition. Missing an inspection after hot work poses a potentially catastrophic hazard. Pay a relevantly trained employee to keep an eye on the area – a worthwhile expense given the destruction and cost if you don’t.

If you can’t keep a dedicated fire watch for the hot work zone, limit hot work to earlier in the day as much as possible. That should give time to find any stray sparks smouldering during working hours. Monitor for about one to four hours after the work’s completion.

Use a hot work permit

A hot work permit protocol helps to reduce the associated hazards. A helpful and essential two-part tag system, the hot work permit requires the worker to complete a safety checklist before they perform any hot work, even beyond your dedicated hot work zones. At the beginning of any hot work, they affix one part of the two-part tag close to their work area. It remains there until the fire watch is complete. The other portion stays on file, audited by management.

The permit system ensures the individual performing the hot work follows the appropriate safety protocols. It requires they sign off on a checklist before working and after the fire watch is complete. A hot work permit is available for purchase from most retailers of safety supplies.

Spark-producing activities safety program

Include a safety program specific to spark-producing operations in your larger safety program. It should include the use of hot work permits. The safety protocols include all spark-producing operations that occur onsite, no matter who does it, your staff or third-party contractors.

Don’t make it complicated! The hot work part of your plan is only a page or two to identify the unique safety specifics pertaining to spark-producing activities.

We specialize in group and union member insurance.  If you are an existing or retired union member in BC, we can get you the best rates.

Wondering if your business doing hot work might impact your commercial insurance? Talk to us!