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RE: Application for Insurance for Commercial General Liabilty? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.
RE: Application for Insurance for Equipment? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.
RE: Application for Insurance for Property? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.
I have read the above terms and conditions and agree to proceed with the application.
If you have replacement cost insurance, your claim will cover the lesser cost to repair of replace the damaged property to their original condition or buying new items of like kind and quality to the ones lost; there will be no deduction for depreciation. This provides the highest level of coverage.
This means, if your property is totally damaged in a fire, the claims payment you receive will allow you to restore the property with materials and features as similar as possible to the damaged property. Your policy limit on the property must represent the cost of materials/items of similar kind and quality.
If you have an actual cash value policy, your claims payment will be based on the cost of buying items in similar condition to the ones you lost; replacement cost minus depreciation. For example, if your building is damaged in a fire, we will determine the current value of that building in its condition and provide you with that amount as a payment.
The co-insurance clause is a common and often misunderstood part of property insurance policies.
As the property owner, you assume the responsibility of always maintaining the required amount of insurance. If you do not insure up to the percentage specified in the co-insurance clause (usually 90% of the total replacement value) and your limits are not adequate, you could be left responsible with co-insuring a large portion of the property. In the event of a claim, you become a "co-insurer" and share in the loss by having your payment reduced.
If the replacement cost value of the building / property is $500,000 the minimum amount of insurance that must be carried is $450,000 (90% co-insurance clause). Now, assume you carry only a $300,000 limit of insurance and you suffer a loss in that amount:
Since the amount recoverable is only $200,000, you (the "co-insurer") are responsible for the $150,000 shortfall.
If you insured the $450,000 no penalty would have applied, and you would have recovered your loss in full.
To ensure that proper limits are in place and the proper cost per square foot to replace or repair your building or equipment with new materials is chosen, it is suggested to get a professional appraisal. This will take into consideration all the required elements that a replacement cost policy wording encompasses. A professional appraiser will determine items such as by-laws or demolition and salvage costs and take into consideration the frequent changes in building materials and labour that should be included in the value.
OASIS Outdoor Adventure & Sport Insurance Solutions Inc. offers a national general liability program for accredited ATV, Off Road Trail Bikes and Snowmobile Safety Instructors while providing their courses.
Our specialties include, working with non-profit clubs, trail related exposures, outdoor adventure risks, large commercial, as well as standard line products.
For clients who own pedal bikes, ATV’s, UTV’s Dirt Bikes or Snowmobiles, go to www.insuretoys.ca to find a local broker.