14 June 2017 11:30
The insurance Bureau of Canada (IBC) has completed an adjustment of its endorsement earthquake in order to provide greater flexibility to the insured. Effective immediately, the new version of the addendum (BAC 1554Qr) allows the insured to choose the property he wishes to protect, as well as the amounts of insurance it needs. The insured may also choose the deductible according to the terms and conditions offered by the insurer.
Thus, it now becomes possible to protect the goods included in the house for 50 000 $ and to ensure the damage to the residence for $ 200,000 (the figures proposed here as examples). In the event of an earthquake, and subject to the terms of the settlement and of the deductible, the insured may repair or replace the damaged property up to the amount of coverage you select and perform work at his residence as a function of the amount of insurance that he has obtained at the outset.
Flexibility regarding the terms of the settlement
This amendment also allows for a flexibility in relation to the terms of the settlement. Thus, the section of the Terms of the settlement of this new version provides an indemnity without depreciation even if the insured person chooses or is forced to rebuild his residence to another location.
According to the example, above, if the insured elects to rebuild his residence elsewhere in the same municipality, it will receive a severance payment of $ 200,000 and no depreciation will be applied. Obviously, if the reconstruction exceeds the amount of $ 200,000, the insured will pay the difference.
No impairment losses will be calculated
The latter will receive compensation in cash without depreciation if the amount of the damages exceeds the amount of insurance.
Always according to the example above, if the damage to the residence amounted to $ 250,000 and those to property, to 75 000 $, the insured may receive compensation of $ 250,000, or the sum of the amounts subscribed. No impairment losses will be calculated.
In summary, in the event of an earthquake, the amount subscribed will be paid without depreciation.