Oops! I Just Agreed to Increase My Home Insurance Rate

2013 was not a great year for homeowners. Parts of southern Alberta including Calgary experienced devastating floods. Much of southern Ontario including Toronto suffered from a major ice storm. Ontario also experienced some flooding as well. Many homes were damaged by water, ice and falling trees. Insurance companies felt a shocking hit to their profits as the claims from home owners poured in. Seeking to recoup these losses, many insurers increased their 2014 home insurance rates.

How Did Insurance Companies React to the High Claim Rates in 2013?

Insurance companies responded to the waves of home insurance claims in slightly different ways.

Some ceased offering any coverage for flooding, in particular for storm sewer or sanitary sewer backup flooding. Others significantly reduced coverage and/or increased the premiums for that coverage.

Most never did offer any coverage for “over land” flooding. That’s the type where the water rises outside your home, perhaps from an overflowing creek or river, and pours into your home and especially the basement as if it’s filling a swimming pool. Even if you live no where near a stream or lake, you may still experience over land flooding, though. In Toronto, the problem was that huge volumes of rain fell in a very short period of time. The water could not be drained away quickly enough. The storm sewers filled to the top. Water began to form shallow lakes on roads and lawns. In some areas this water found a way into basements through doors and window wells and poured in.

Sewers themselves also backed up into houses as the pressure of the water in the mains grew unusually high.

By eliminating and reducing coverage for flooding, insurance companies are reducing the number and size of the claims they will have to pay out.

According to an article on CBCNews one of Canada’s large insurance companies raised premiums 15-20% in late 2013 because “catastrophic losses and weather-related claims have risen dramatically.”

Here in Ontario, some companies also took a hard look at their policies after the ice storm and the heavy snowfall winter. Many claims had been received not only for trees falling on homes but also for the damage done by snow and ice to roofs and home interiors.

What Happened to Our Home Insurance Policy for 2014 After the Ice Storm and Harsh Winter?

We have our home insured with a company that targets engineers and other university graduates and which was fairly recently taken over by a bank. It has been a good company to deal with when claims were necessary. (We’ve had to make only 1 home-related claim (a break-in at our previous home), but 2 vehicle-related claims (1 where someone attempted to steal our car and damaged the ignition; and 1 where someone decided not to stop like the rest of the highway traffic until after they slammed into our stopped car.) Their rates seem reasonable based on my occasional checks with competitors.

For our 2014 home insurance policy renewal, we were moderately surprised to see our rate had not gone up. I’ve read online of others who have seen their rates go up by several hundred dollars per year. Reading through our policy more closely, I discovered that the rate hadn’t gone up because the coverage had gone down.

Specifically, we are now only covered for $15 000 if our home experiences water damage due to a sewer backup. Frankly that’s just a token amount of coverage given the real costs most homeowners face to repair the damage of a typical backup.

And we suddenly lost all of our coverage for “Weight of Ice, snow, or sleet, ice damming, roof water damage.” A tiny note indicated this was because of the age of our roof.

How Old is an Old Roof?

Now our roof is not brand new, in fact we had to have a minor repair done a few years ago due to a mistake made when it was re-shingled. But it isn’t an ancient roof either. In fact the roof repair crew warranted the roof as good for another (then 7 now) 4 years minimum. It should be good for much longer than that.

So, and this is where I made my first mistake, I phoned my insurance company to ask: “How old do you think our roof is?”

Our home, by the way, has had several owners. It was built in 1969. So it was quite amusing to hear the insurance company had on file that our roof was installed in 1969.
No wonder they weren’t insuring it against weight damage! A couple of flakes of snow and an icicle would probably take out a roof that old.

According to the representative, for many policies they don’t have an age reported for the roof. In those cases they use the construction date of the home as the roof installation date.

So we updated our policy with the correct age of the roof.

And *Zing!* they got me.

Why I Agreed to Increase My Home Insurance Premium

The next thing the representative said was. “Ok, now we can offer you coverage for the weight of snow, ice or sleet, ice damming and roof water damage. We will provide up to one million in coverage for damage to the interior of your home. We will pay to replace or repair the roof.”

Sounds good!

“For only $69 a year.”

Rats.

Now I was on the spot. $69 doesn’t sound like much. That’s $5.75 a month. About the same as one kim chi maki roll.

“Ok. I’ll accept that.”

Bam. I just agreed to raising our premiums almost $100 a year for the same coverage we had last year. I suspect I goofed.

As penance, I am abstaining from sushi this week.

And soon we will have to look into installing a sewer backflow preventer. That $15 000 won’t be much use when our Guinea Pigs are doing the backstroke.

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Did your home insurance rate go up this year? Or did your coverage drop? Please share your unpleasant experiences with a comment.

An Emergency Only Cell Phone: Pros and Cons of Petro-Canada Mobility

I understand that most of the world now has a fully-featured cell phone capable of accessing the internet, providing GPS coordinates, making phone calls, sending text messages and probably initiating the count-down launch sequence for an asteroid-blasting rocket capable of protecting Earth from another dinosaur-exterminating-scale impact. That didn’t stop me from wanting a cell phone
(a) from which I could call CAA and 911;
(b) that I wouldn’t care (much) if I lost it, destroyed it, or had it stolen; and
(c) that doesn’t cost much to have activated and ready to use.
The US (and most other countries) are full of these types of ‘disposable’ phones with appropriately-priced (read cheap) plans. Canada only offers a few. This is a review of some of the pros and cons of our Petro-Canada Mobility emergency only cell phone.

Why Do We have a PC Mobility Phone?

I’d love to say I did a detailed analysis of every cost, feature and fact about emergency cell phones and selected this one.

I didn’t.

We have a Petro-Canada phone because of a work situation for a family member which resulted in an incredibly huge number of Petro-Points being accumulated. Enough that it was simple to buy a Nokia and a year’s worth of activation plus some air time for “free” by using only a fraction of the points. Add to that an unexpected winter trip and the need for a way to call for help if even new snow tires couldn’t keep a grip and the decision was made.

What’s the Service Been Like with Our Petro-Canada Phone?

We’ve almost always been able to get a signal. Apparently, the carrier is Rogers based on the maps of available range.

We were unable to get a signal in some spots in the Cape Breton Highlands this summer but in other spots we could get through.

For southern Ontario highways and bi-ways we’ve had no trouble connecting to the network.

What Does the Airtime Cost?

Because this is an emergency phone we don’t get a monthly plan for it, although one is offered. Instead we buy blocks of airtime and activation.

For $100 we get 365 days of activation and $100 dollars of airtime. The calls are billed against this amount. As of December 2013, the calls are billed at $0.25 per minute for local and $0.50 per minute for long distance within Canada and the US. There is also a monthly charge for 911 service. In December 2013, that charge is $1.25 per month.

As of December 2013, outgoing text messages are

  • 10 ¢ to destinations within Canada
  • 15 ¢ to the US and
  • 35 ¢ to anywhere else in the world.

Incoming text messages are free.

If you buy a small block of minutes remember you will be paying the 911 fee even when you don’t use the phone so keep an eye on your balance. (Or an ear: they will send you a message when you’re getting low.)

Isn’t That a Lot of Money for an Emergency Phone?

Possibly. Frankly I think it’s insurance I am more likely to use than my regular auto insurance.

I consider the annual cost to be another type of insurance premium where I am betting I will need it and the insurer is betting I won’t. From that point of view, it seems a reasonable cost to me.

Does Airtime Rollover or Expire?

If you renew your phone before it expires, any balance of airtime dollars will carry forward into the new renewal time. If you forget to renew before the expiry date you will lose any dollars you still have.

I understand there’s a class action lawsuit brewing against one of the major Telecoms about this loss of air time. For now, though, there’s no law that says they can’t do this.

What Kind of Phones are Offered?

The cell phones are actually sold separately.

Remember that I wanted a phone that I could speak into and hear a reply? And that I could lose, destroy or have stolen without serious regrets?

I bought a bottom of the line Nokia with no keypad. I paid with Petro-Points but it cost about $40 to buy with cash a couple of years ago. It’s been working fine for years now and it keeps a charge for months.

I won’t list the available phones. There’s only a couple and they change from time to time. You can look at them on the http://mobility.petro-canada.ca/default.aspx site.

If you are also looking for this type of emergency phone I’d suggest looking at the phones offered with the lowest cost on the PC Mobility website. Then hop over to a review site like amazon.com and see what real people have said about that particular model.

Can I Just Buy a SIM Card from PC Mobility for my Old Phone?

Some people may have an older GSM phone they want to keep in the car as an emergency phone.

Yes you can buy a SIM card if your phone is unlocked. It has to be a GSM phone (850/1900 MHz.)

Usually you can get a SIM card for $5 at a Petro-Canada gas station. It usually costs more (about $15) to order one online.

There are no refunds on SIM cards, even if you find you don’t have the correct-type of phone after you buy it. If in doubt, talk to customer service *before* you buy the card.

PROs of the Petro-Canada Mobility Phone

  • No credit check is necessary.
  • No bills are sent. If you use up your dollar balance you can’t make a non-911 phone call and you can’t send a text message.
  • No roaming charges. OK, this one is a bit of a cheat. There are no charges because there’s no support for roaming.
  • Free incoming text messages.
  • Free voice mail.
  • Free caller id.
  • Free call waiting.
  • No system access fees. (There is an automatic non-deniable $1.25 fee per month for 911.)
  • No contract.
  • You can buy more minutes at Petro-Canada gas stations, but you will need to call a toll-free number to activate the minutes. Be sure your receipt is easy to read before leaving the gas station!
  • You can buy more minutes online if you register your phone.

CON: Very Limited Coverage in Low Population Areas

Because the phone uses the Rogers network, the range is definitely biased towards areas of high population like the corridor from London Ontario to Quebec City.

If you live, even along the TransCanada, in northern Ontario, there may not be any coverage. Check the map at
http://mobility.petro-canada.ca/images/general/coverage_national.pdf
if you don’t expect to use the phone mostly in highly populated areas.

(For comparison, here’s the Rogers GSM network map:
http://www.rogers.com/business/on/en/enterprise/rogers/coverage/ )
and the Bell map:
http://www.bell.ca/Mobility/Coverage_map

To be fair, it’s not really a Petro-Canada Mobility drawback. It seems both of the major carriers in Canada don’t care to offer decent coverage to areas with low population density.

CON: You Can’t Use the Phone in the USA

Unless you are close enough to the border to pick up the Rogers carrier signal, you can’t use this phone in the US. It has no roaming abilities.

CON: Local Call Rates Are High

I suppose it’s good that there isn’t much difference in the cost between a local call and a (US and Canada only) long distance call. Unfortunately, it doesn’t mean the long distance rate is low, it means the local call rate is high.

If you’re planning to make a call that’s longer than 2 minutes locally, it’s much cheaper to use a payphone for 50 cents, than pay the 25 cents per minute to use your cell phone.

Other Options to Consider

There are other providers to consider.

  • 7-11 stores are the physical location selling SpeakOut network phone services.
  • The regular Telecomm suspects all offer a prepaid phone service, including Bell and Telus.

Related Reading

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Do you have a ‘disposable’ cell phone instead of or in addition to your multi-purpose ‘real’ cell? Which provider do you use? Please share any cautions or concerns from your experience with a comment.