Knowledge is the first step in managing risk.

We recommend that our insureds consider carrying at least $5 million in coverage for personal liability on automobiles, boats, recreational vehicles and all owned properties. Higher limits are available.

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Client Newsletter

Climate Change = Increased Property Damage

The summer of 2009 supplied additional evidence of climate change throughout North America.  Closer to home, Environment Canada reported that “July was so cold and rainy that most Ontarians were left to wonder when the summer would arrive.”

Not only were temperatures lower and rainfalls higher, but severe weather with torrential downpours and destructive winds (including 5 confirmed tornados August 20th) were more common.

The impact on insurance claims has been dramatic.  For much of the last 300 years, property owners bought insurance because of the threat of fire or smoke.  But so far, the 21st century is different: most property insurers in Canada incurred greater losses (both by frequency and total dollars) from water damage than from fire.  In fact, to date in 2009, many Ontario insurers have paid more on damage caused by water than from all other perils combined.

This is due to a number of factors, but certainly climate change is driving more destruction by water and ice.
 
Underwriters are recognizing this as an emerging “front-burner” issue and will be more focused on steps property owners are taking proactively to mitigate this risk:

• installation of back-water valves and sump-pumps;
• plumbing system maintenance and updates;
• replacement of aging shingles;
• adding heating cables to prevent ice build-up on the roof.

Knowledge is the first step in managing risk.

Advice you can trust when it matters most.

KNOX INSURANCE BROKERS LTD.
705 CASSELLS STREET, NORTH BAY, ONTARIO P1B 4A3
P. 705.474.4000