Property Insurance Policy FAQs
The following is provided for general information purposes only. These Frequently Asked Questions are not to be interpreted as a commitment of coverage by PEI Mutual; it's Agents, employees, or representatives. Coverage determinations are subject always to the conditions of your policy. If you have specific questions, please contact our head office at 1-800-565-5441.
What is a deductible and how does it work?
The deductible amount is shown on your Coverage Summary and is applied to each claim.
Here’s how it works:
In the event you experience an insured loss, any expenses that are below the deductible amount are your responsibility. The covered amounts over and above your deductible are our responsibility.
Discounts are available if you choose a higher deductible.
What does “This policy contains a clause that limits the amount payable” mean?
Virtually all insurance policies contain conditions and clauses, which are rules of the policy.
Your claim may be reduced for reasons such as; the amount of the deductible, specific limits of insurance for certain types of property or the limits of insurance purchased.
This clause is printed on your coverage summary to advise there are reasons that we may reduce the payment of your claim.
How do I add a name to my policy?
A name can be added to your policy by having all the policyholders named on the policy sign an endorsement authorizing the addition of the new named insured.
How do I delete my name from my policy?
A policyholder can delete their own name from a policy by signing an endorsement or Release of Interest form.
My mailing address has changed, how do I update my policy?
You can initiate an address change by contacting Head Office.
I misplaced my Coverage Summary, how can I request another copy?
You can contact Head Office and request a new Coverage Summary by phone or e-mail. A replacement Coverage Summary will be mailed to the address on file or e-mailed to a confirmed email address.
Does PEI Mutual email invoices?
Invoices are mailed with the Coverage Summary at renewal and for midterm changes to the policy.
A policyholder can request an email copy of an invoice by contacting Head Office.
What options do I have to pay my policy premium?
Payment options include Annual Billing and Monthly Payments.
Annual Billing
The following payment methods are accepted:
- Cash
- Debit
- Cheque
- Payments can be made at your local bank, your bank’s ATM Machine, telephone banking or online banking
- Visa and Master Card in person or over the phone
Monthly Payments
Our Pre-authorized Debit Plan is a monthly withdrawal from your bank account. To remain on this plan, payments must be kept up to date.
If you are interested in signing up for our Pre-Authorized Debit Payment Plan, please contact our Head Office.
What is a Mutual Rebate?
This is a discount that applies to all policies.
Policyholders of PEI Mutual share a special relationship as Members of the company. The Members of PEI Mutual have been protecting each other since 1885 and since that time we have welcomed Islanders to join in our values of shared protection, loss prevention and financial successes.
In years where financial results allow, our Members receive Mutual Rebates in the form of reduced annual premiums. The Mutual Rebate is deducted and shown as a credit from the annual premium at renewal each year. This amount is determined by the Board of Directors each year based on financial results.
Can I insure my vehicles with PEI Mutual?
PEI Mutual does not write insurance policies for vehicles that are required to be registered. (For example: cars, trucks, dirt bikes, atvs and snowmobiles) These vehicles require automobile insurance.
PEI Mutual does offer policies for certain farm vehicles, watercraft and travel trailers.
What is Replacement Cost?
Some insurance policies include a Replacement Cost basis of settlement. An insurance policy including replacement cost will settle an insured loss based on the cost of replacing or repairing the property without deduction for depreciation.
Under these policies, if replacement is made promptly with property of like kind and quality, the incurred replacement cost may be paid up to the limits of insurance.
What is Actual Cash Value?
Actual Cash Value means the actual value of similar used goods.
Actual Cash Value is a basis of settlement on an insurance policy, and in the event of an insured loss, the claims settlement is based on the market value or the initial cost of your property with depreciation considered.
Why do I need personal legal liability coverage on my Homeowners policy?
Legal Liability insurance provides coverage for bodily injury to others or if you accidentally cause damage to another person’s property.
For example, if your child accidentally breaks a neighbor’s window, you may be held legally responsible for the damages caused.
Many homeowners insurance policies provide a minimum of $1,000,000 in personal liability coverage, meaning the insurance company may pay up to that amount in total for compensatory damages to injured persons in one occurrence. Your personal liability insurance also provides coverage for many of the expenses associated with assessing and defending claims. If you feel you need more protection, higher limits are available for purchase.
Why do I have farm liability coverage? I am not a farmer.
If you are not a farmer and have farm liability, it could be because you:
- own over 25 acres of land
- rent your land for farm use
- own a tractor
- own a horse or other livestock
A personal legal liability policy is not appropriate for these situations. We offer a farm liability policy at a small additional charge.
Are my valuable possessions such as jewelry, watches, or furs insured?
Your valuable possessions are insured for limited amounts of coverage and losses. Please refer to your policy booklet for specific limits.
You may want to consider adding a Personal Articles Endorsement to your policy which will provide specific coverage for your valued item.
I just purchased a hearing aid, is it insured?
Your hearing aid would be considered insured personal property for certain types of losses. Medical equipment should be reviewed with an Agent to discuss coverage and limits as broader coverage may be available.
Does having a home business affect my Homeowners Policy?
The short answer is yes. Our Agent must be notified of any business activities so appropriate coverage can be arranged. Undisclosed business activities may result in your policy being void.
Please advise our Agent if you are considering starting or have started a business on your premises.
Does my Homeowners policy cover my child while attending a university or college?
The Homeowners policy has an extension of coverage for dependent students who are temporarily away from your household to attend school and return home during breaks.
Please contact our office for confirmation that coverage does apply to your child.
My Homeowners policy shows Detached Private Structures, am I charged for this?
Detached Private Structures are structures that are separated from the Dwelling. Some examples of detached structures are: garages, utility buildings and fences.
Under your Homeowners policy, this is an automatic extension at no additional charge. The limit of coverage is printed on your Coverage Summary.
This coverage is limited to personal use structures 900 sq. ft. or less. Specific coverage can be arranged for structures used for business, farming or fishing purposes or that exceed 900 sq. ft.
What does “Additional Living Expenses” mean?
Additional Living Expenses provides compensation to you when your home is uninhabitable while it is being repaired due to an insured loss. The limit of coverage is printed on your Coverage Summary and is included at no extra charge.
What does Principal Residence, Unoccupied or Vacant mean?
A home that you reside in for more than half of the year is considered to be your Principal Residence. Our Homeowners policy is our best residential coverage and is offered for Owner Occupied Principal Residences. When you no longer occupy a home as your Principal Residence, you must notify an Agent who can discuss coverage options with you.
Unoccupied is different than Vacant in insurance terms.
A home is unoccupied when you are away from your home temporarily, but you intend to return; for example, when you go away on vacation.
A home is Vacant when an occupant has moved out and no new occupant has moved in. A new structure is considered to be vacant when no occupant has yet moved in. Some coverages cease as soon as a home becomes vacant. All coverage ceases after a home is vacant for 30 days.
If you will be away from your home for an extended period or if you move out, please notify an agent to discuss coverage options.
What precautions should I take if I am away from my home during the heating season?
If you are temporarily away from your home for more than 4 days, you may maintain coverage for damage caused by frozen plumbing systems if you:
Turn off the water supply and drain all pipes and appliances, or
Arrange to have a competent person enter your dwelling daily to ensure that heat is being maintained.
If I have a monitoring system, do I need to have a person enter my house daily?
Yes, if you wish to maintain coverage for damage caused by frozen pipes. In the event of a heating system problem, monitoring sensors and systems do not always work as planned.
There is also an advantage having a responsible person present who can deal with a problem.
What is required if I decide to rent my dwelling?
You must contact an Agent if you decide to rent your dwelling.
A Homeowners Policy is our best policy with the most extensive coverages. Once notified, we may be able to offer some types of rental insurance within the Homeowners Policy. However it is not typically suited for rental properties.
For rentals that do not qualify under our Homeowners Policy we may be able to provide a Residential or Commercial Policy depending on the circumstances. Rentals are typically insured on a Commercial or other type of Residential Policy.
Please contact our office if there is any change in the occupancy of your property as this may void your policy.
I do not have a mortgage on my property. Why do I receive a standard mortgage clause with my Coverage Summary?
The Standard Mortgage Clause and a Cancellation Form are printed on the back of every Coverage Summary. This is a standardized form for convenience and processing purposes.
Why do my limits and premium increase every year?
The Homeowners Policy provides inflation protection. We adjust the limits of insurance for your dwelling at each renewal date to help keep up with increasing construction costs.
Why does PEI Mutual need to know how my home is heated?
Heating systems in homes and buildings are assessed by our Agents as different systems pose different risks.
Improperly installed or maintained wood appliances are common sources of fires and smoke damage claims.
If you have an oil-burning appliance, there is a potential of an oil leak from the appliance, product line or tank. Oil spills are costly to clean up and are a hazard to the environment.
We do charge additional premium for these types of heating systems because of the additional risk.
Other heating systems, such as electric, heat pumps and propane may be installed with no additional charge in premium.
Please contact our office prior to installing a heating system.
If I install a wood burning appliance, do I need to contact PEI Mutual?
Yes, you must contact our Agent before lighting your wood appliance.
Installing a wood appliance represents a material change to the policy. Our Agent will visit your home to complete a survey to verify that it is installed according to our standards.
PEI Mutual requires that a wood appliance:
- is certified by CSA, ULC or Warnock-Hersey
- is installed to the manufacturer’s specifications
- is vented to an approved chimney system
PEI Mutual recommends that you have a WETT Certified Installer install the wood appliance and chimney.
Should I periodically check my oil tank to prevent an oil spill?
Home heat tank management is every homeowners responsibility. To help prevent a spill, homeowners should complete visual inspections of the tank connections on a regular basis, watch for signs of corrosion and leaks, ensure the foundation is stable and solid and remove snow from outside tanks.
Outdoor steel tanks corrode from inside out and fail without warning.
The tank should be replaced immediately if:
- There is any oil-like substance or wet area near your tank
- Nearby soil stained by petroleum
- Strong and constant smell of petroleum near your tank
- Smell or taste of petroleum in your water
- Tank is discoloured or damp on the bottom
If you believe that there has been a spill at your property, contact PEI Department of Land & Environment at 1-866-368-5044 and PEI Mutual at 1-800-565-5441.
If I change my heating to heat pumps, do I need a secondary source of heat?
While PEI Mutual recommends a secondary heat source, we do not require it.
We do recommend that our policyholders consult with a Qualified Home Heating Professional to ensure that the heat pump is adequate for both our climate and suitable for the home’s heating needs.