Insurance Expert: Erb and Erb Insurance

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Tip of the month

Have you properly protected your greatest investment?



For most people, their house is the biggest financial investment they make. As a homeowner, it is your responsibility to ensure you have enough coverage to protect your investment and financial security. Your independent insurance broker will be able to help you by using an evaluation tool that will help to determine the rebuilding cost of your home. The rebuilding cost is different and independent of market or resale value.



Did you know that rebuilding costs have inflated by as much as 60% over the past 5 years in some areas of Ontario…KW, Cambridge and Guelph are some of those areas!



In order to obtain proper coverage, follow these tips:



- Answer all of the questions your broker asks to the best of your knowledge / ability

~ Leaving out information for the sake of paying less in premiums can cost you more at the time of a claim!



- A conscientious broker will inspect your home to verify relevant information and determine an appropriate limit of insurance



- Make sure you notify your broker if you make any renovations

Most recently answered questions

Is there any set amounts for the opcf 20? I recently had my car totaled, not at fault, the insurance company stopped paying for my rental 24 hours after settlement was agreed on. I was left with paying for the vehicle for 4 days myself (my son worked out of town and needed a vehicle), then I still have no vehicle until my new one is ready. I have not received the cheque from the insurance company as of yet. I will be without settlement cheque or vehicle for at least 5 days before I see the money, possibly longer. I read somewhere that you are covered up to $900.00, some companies it is higher. I don't think it's fair that they can make us take the rental back, before we receive the settlement cheque.

Thanks for your question.
There is no set amount for the OPCF 20. Each insurance company can set their own limits for this coverage. Typically we see somewhere between $900 - $1500. This is a maximum limit that an insurer will pay out under this coverage however, in an effort to reduce the amount of money paid out due to a claim, and to keep insurance premiums as low as possible insurance companies will make efforts to settle a claim as quickly as possible so they do not have to pay up to the policy limit.



Without knowing all of the details surrounding your particular claim it is difficult to make too many comments. However, I agree that on the surface, it is not fair that you would have been forced to return the rental prior to receiving your settlement cheque. I suggest that you speak directly with your independent broker to see if they can help you with this situation. If your broker is not able to help, or if you are not dealing with an independent broker, your contact is likely directly with the insurance company (this is referred to as a direct writer) and you may not get much help because you deal directly with the insurer’s employees rather than an independent advocate who is looking out for your best interests. If you are not able to get to a resolution that you find suitable, you can always contact the insurance company’s ombudsman. The ombudsman is in place to listen to customer complaints and to try to resolve differences.

I hope that this has helped to clarify things for you. Please let me know if you have any other questions.



When you have an accident and your car is a write off, is the insurance company allowed to deduct the deductible off the settlement. I had heard that they were not allowed to do this. When I questioned the insurance company, they said the law has changed. Is this true?

If your vehicle is written off you are responsible for whatever deductible applies to the particular coverage that will cover the loss.

For instance, if you are involved in an accident that is deemed to be your fault as laid out by Fault Determination Charts, then you will be responsible for your Collision deductible. If your car is written off due to vandalism or theft of the entire vehicle, you will be responsible for your Comprehensive deductible. If you are found to be not at fault as laid out by Fault Determination Charts, you will be responsible for your Direct Compensation / Property Damage deductible (which most policies have at $0). In some cases, where the fault is shared by two or more people involved in the accident, you will be responsible for a portion of your deductible depending on which coverages will respond to the claim. The example being if you are found to be 50% at fault and 50% not at fault, you pay half of your Collision deductible and half of your Direct Compensation / Property Damage deductible.

The wording of the Ontario Automobile Policy used to allow for the deductible to be waived if the entire vehicle was stolen (and not recovered) or if damage was due to fire. The wording was changed a number of years ago.


I have been renting for the pass 4 years after my major at fault accident, unable to get insurance because i have bad record. I guess my question are, Does renting a car build insurance record? How many years before they erase your accident record? Any insurance who take client with the bad record?

Renting a vehicle does not show up on your driving record. When we look at a drivers history, we look for the number of convictions (tickets) that they have had in the past three years, as well as their insurance history and any claims that go along with that. If you have been renting vehicles, you have not been listed on an insurance policy and unless you were involved in an accident during that time, there would be no way for a broker to confirm your history.

An accident will affect your insurance premiums for anywhere up to ten years, depending on the company. Each year after the accident, your record will improve and your rates should come down. The number of years since your last accident, together with any convictions and/or license suspensions will help us to determine your rates.

In Ontario, anyone who owns a registered and licensed vehicle, and has a valid drivers license is able to obtain insurance, providing they can afford to pay the premium. The fact that they have a bad record does not preclude them from getting insurance. However, the cost might be too high for them to be able to afford insurance. I would be happy to discuss auto insurance with you and obtain a quote if and when you are looking to insure a vehicle.

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