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Minister issues advisory regarding homeowners� insurance Walter Noel, Minister of Government Services and Lands, is concerned about the number of homeowners, especially in the downtown St. John�s area, who are having difficulty getting their homes insured. Minister Noel said: "Consumers face significant stress when they can�t find insurance. Our Insurance and Pensions Division can provide advice and assistance by making consumers aware of the steps they should take to obtain coverage. When all steps have been taken and coverage is still unavailable, our staff will contact the Insurance Bureau of Canada (IBC) on their behalf. This usually results in obtaining an offer of coverage." Homeowners� insurance is provided by private insurance companies who set their own guidelines on what risks they are prepared to insure. IBC is the national trade association that represents these companies. When purchasing insurance, consumers need to be aware that they are most likely dealing with an insurance broker. The broker does not insure your home. The broker obtains insurance coverage from an insurance company they represent. Brokers generally represent several insurance companies. When shopping for homeowners� insurance, consumers should keep a list of the brokers contacted and the insurance companies the brokers represent. When coverage is denied, they should obtain the reasons why. If unsuccessful after contacting several brokers, consumers should call the Insurance Brokers Association of Newfoundland (IBAN) at (709) 726-4450. IBAN has a process in place to assist consumers by putting them in contact with a broker who will assist them in trying to obtain coverage. If this step is unsuccessful, IBAN will refer the consumer to the Insurance and Pensions Division and an officer of that division will then contact IBC. Minister Noel said: "We cannot tell private companies to provide insurance, but when this process is followed, most people get coverage, even though premiums and deductibles are likely to be higher." Consumers can contact the Insurance and Pensions Division at (709) 729-2602 or (709) 729-2593. Media contact: Doug Connolly, Director of Insurance and Pensions, (709) 729-4909 or Rick Callahan, Director of Communications, (709) 729-4860. 2002 11 08 4:40 p.m. |
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