Newsletter

To Our Valued Clients and Fellow Cottagers

Our newsletter keeps you informed of changes in the cottage insurance industry, safety around your residence and up-to-date news on our business. When I first started working on this newsletter I struggled with what topics I might cover. Since then the newsletter has taken a life of its own and I now fear that I might miss something. The good news, this is our twentieth anniversary. In 1992 we took a leap of faith and introduced the R&R Plan. Little did we know where our program would take us and the wonderful friends that we would make along the way. The R&R Plan has continued to grow and now enjoys a global stature serving clients in the US, Europe, Asia, Australia and the Caribbean. This success would not be possible without you our valued clients.

WATER ACCESS COTTAGERS

The R&R Plan covers incidental watercraft and accessories on the cottage premises to a limit of $5,000.00 per occurrence. Incidental watercraft up to 25hp and 26ft in length are covered for liability while in use on the water. Unscheduled watercraft which are off premises on the lake or at the landing are not covered for physical damage unless they have been added to the policy and a premium charged. For water access, a cottagers boat is key to the use and enjoyment of your recreational residence. To secure coverage or to confirm your coverage please call our customer service representatives.

After a long wait, we are proud to announce the launch of our cottage web site.

The website will be a source of information about R Robertson Insurance Brokers and our cottage programs. Current and past newsletters will be featured with tips on risk management in and around the cottage. The site features a quote engine to secure an instant quotation in real time.

In an effort to protect our environment and reduce the risk of loss or damage the insurance industry has embarked on a program to review risks with oil heating to determine the age, construction, and location of the oil tank.

As a property owner, you are absolutely liable for all pollution and environmental cleanup costs linked to an oil tank on your premises. A residential client of our office experienced a loss caused by the seepage of oil from an underground tank located on his premises that was recently settled in excess of $500,000. Oil suppliers have been mandated to inspect and monitor the tanks that they fill. Once a tank has reached its useful life the oil supplier is prohibited from filling the tank. To manage risk and reduce losses we will be forwarding oil tank questionnaires to clients with oil heating systems. A copy of the oil tank questionnaire can be downloaded here with further information relating to the topic.

This past winter we received a number of inquiries about the use of dock bubblers. Our first reaction to the issue was “you are covered and there is little to worry about”.

A more thorough review of the issue has turned up a number of disturbing issues that I wish to report on without commenting on the proper use or operation of a dock bubbler. Section 263 of the Criminal Code of Canada section (1) states that every one who makes or causes to be made an opening in ice that is open to or frequented by the public is under a legal duty to guard it in a manner that is adequate to prevent persons from falling in by accident and is adequate to warn them that the opening exists. The act continues to state that everyone who fails to perform a duty imposed by subsection (1) is guilty of manslaughter if the death of any person results therefrom. Standard liability clauses contained within most insurance contracts exclude bodily injury or property damage caused by any intentional or criminal act or failure to act by: any person insured or any other person at the direction of any person insured. The OPP commented that the holes bubblers cause a change from day to day and if not being checked the safeguards in place may not be effective. If several cottagers side by side use bubblers there may be (and are) sections of open water as large as 400 ft. After a sober second thought, I must discourage the use of bubblers and caution all cottagers who use or contemplate using bubblers that the financial risk is high and likely not covered by insurance.

The focus on updating the R&R Plan was to harmonize the recreational product on a Canada wide basis and lead the industry by providing best in class coverage for recreational residences.

A number of the new extensions and product limitations will have little or no impact on the cottage program. We anticipate the highlighted items will be of greatest interest. Of special note the following coverage extensions have been incorporated into your coverage: -Food freezer contents coverage. -Mortgage Rate Protector. -Damage caused by the artificially generated electrical current. The following property limitations have been added or revised on your policy: -Jewelry limit………$6,000.00 -Bicycles limit……..$1,000.00 -Golf Carts limit……$5,000.00 -Renewable Energy Equipment……..$5,000.00 -Wines & Spirits limit…..$5,000.00 -Securities limit……………..$5,000.00 -Coin Collections limit…….$500.00 -Stamp Collections limit….$2,000.00 -Collectibles limit……………$5,000.00 -Safety Deposit Box contents…$10,000.00 -Spare Auto Parts………….$1,000.00 -Works of Art limit…………$10,000.00 -Electronic Data Recovery…….$3,000.00 Options now available for an additional premium: -Septic Backup $25.00/annum -Wet Boathouse and Wet Building coverage -Boats & Motors -Liability limits $2 Million to $5 Million -Extended rental coverage 60 to 180 days -Extended rental income coverage 

Log home renewals are being individually reviewed. Coverages will be subject to the new wording introduced by Elite.

In keeping with industry-wide trends the Guaranteed Replacement Cost endorsement has been withdrawn and replaced by the Replacement Cost Plus endorsement which increases the building value by 10% coverage should the building limit be threatened by a total loss. While the guaranteed replacement cost endorsement was preferred, coverage which focuses on rebuilding your log home is our number 1 priority and available to all log home policyholders. Log homes are special and special attention is being taken to ensure the coverages mirror your needs. The single limit endorsement has been withdrawn and replaced by the fixed limits for outbuildings, contents and additional living expenses. Given the higher value of the log homes the loss of the single limit has little impact on our ability to deliver on our commitment to provide a best in class product backed by best in class service and expertise.

As reconstruct values continue to increase many clients have asked for more options when selecting their policy deductible. With the recent underwriting changes Elite introduced a graduated program with a base deductible of $500.00 increasing in $500.00 increments to $2,500.00.

Discounts range from 10% for a $1,000.00 deductible to 20% for a $2,500.00 deductible. Clients who previously enjoyed a 5% credit with the $500.00 deductible will note that the credit has disappeared on their renewal as $500.00 is now the base deductible. To contain the premium increase associated with the loss of the $500.00 deductible 5% discount we suggest increasing your deductible to $1,000.00 and enjoy a 10% reduction in your property premium. Clients with a $200.00 deductible will continue to enjoy the low deductible at no additional cost. For further information and a cost comparison please call our customer service representative.

We thank you for your business and the opportunity to serve you. Please feel free to contact our office to discuss your insurance needs.

Contact information: Tel: 416-780-9906 Toll Free: 1-877-489-9906 Fax: 416-780-9908 Contact us by Email Principal Broker: Ross Robertson Associate: Daniel Italiano