New insurance solutions to meet new consumers’ needs
Consumer needs and behaviors are evolving faster than ever. The property and casualty insurance industry has had to adapt over the years to meet the new needs of consumers with insurers developing new insurance solutions. Here are some examples.
Identity theft coverage
Identity theft insurance was a great success when it was launched some twenty years ago because it met a real consumer need. Identity theft insurance helps you recover your personal information and protect yourself from the financial loss of identity theft. Even today, with all the cyber risks we are exposed to, identity theft insurance remains an indispensable product, as identity theft continues to make headlines.
Indeed, the frequency of these crimes has increased and the new-style criminals are more daring and hit more people. Instead of taking victims one by one, they attack a large number of people or a particular company. The identity theft techniques used vary: from the most basic, such as trash and mail theft, to more sophisticated methods, such as phishing, fraudulent offers, bank scams, etc.
Yet, despite everything we hear on the subject, many people still believe they won’t become a victim of identity theft. But in reality, anyone can be a victim even if they are very careful. To learn more about this coverage or add it to your home insurance policy, contact your broker.
The sharing economy
Almost unknown ten years ago, the sharing economy is now part of our daily lives. It is growing at breakneck speed, and it's hard to imagine how far it will go. Home sharing, ride sharing, car sharing, storage space sharing: these are all examples of this new economy. Insurers have adapted to the trend of the sharing economy by developing new products. They need to be proactive in this area, since users of sharing platforms are exposed to increased potential risks (damage, liability, security).
Did you know that your basic home insurance policy does not cover home sharing? If you rent your home, you will have to take out specific protection to cover the additional risks that you expose yourself by renting your home. Aviva has created Home Sharing insurance that provides coverage for owners who rent their home in the short term. This coverage may be right for you if you:
- rent out your home (or a portion of your home) on a short-term basis to different individuals, multiple times throughout the year
- manage your rental(s) through a home rental network (eg Airbnb, Flipkey, HomeAway, VRBO) or a professional property management company
- do not manage long-term rentals to individuals or annual lease situations
- loss or damage to buildings and personal property
- intentional acts, criminals acts, or failure to act by a guest
- loss or damage to a guest’s property up to $1,500
- loss of rental income (fair rental value)
- liability arising out of the short-term rental
Renting your car in exchange for a fee is a commercial activity that is generally excluded from standard insurance coverage. If you want to get into car sharing, take these precautions.
- Check if the platform offers insurance coverage. If the platform does not provide insurance coverage specific to the commercial use of your car, you will have to purchase adequate coverage to be covered if an accident occurs while your car is rented to a third party.
- Talk to your broker. He will take note of the intended commercial use for your car and will be able to tell you what is covered or not covered by your car insurance. He can also advise you on the required protection.
- Make sure the services offered are legal. Some research on the internet can inform you about the reliability of this platform and if the people who operate it have all the required permits. If in doubt, do not hesitate to contact your broker.
Storage space sharing
If you have unused space in your home and want to offer it for a fee to another person, it changes the nature of the risk of your home insurance. It's best to talk to your insurance broker to make sure you're covered.
Thinking of offering your RV for rent? Do you know that a basic recreational vehicle insurance policy does not usually cover the use of your RV for commercial or profit-making purposes? Don’t worry. RV Rental Network insurance is now available, which allows you to lease your RV to third parties through a platform. Aviva has developed this specific insurance and has entered into an exclusive partnership with the Outdoorsy platform, the world's largest recreational vehicle sharing platform.
Other emerging risks
Only a few years ago, we would not have known so many trends would have emerged.
- Drones – Individuals are now buying this popular equipment, which is not risk free on many levels, including intrusion into privacy.
- Solar panels – More and more homes are equipped with this type of panel as a power supply or heating system. It's very avant-garde.
- Mini-house – People leave the traditional house with large rooms to live minimally in a small house.
- Living in a RV – People who sell almost everything and go live in an RV year. This behavior is seen more and more with retirees.
- High value property – We are seeing the emergence of specialized products that are higher in value, such as "high-end" bikes (before people had bikes worth $500, and now they are purchasing more expensive bikes valued at $3,000 and more).
These are just a few of many examples related to home insurance. If you have items that are not "standard", such as those mentioned above discuss them with your broker, who will advise you and find you the best protection for your needs.
Chambre d’assurance de dommages (article in French only)
The content in this article is for information purposes only and is not intended to be relied upon as professional or expert advice. Aviva and the Aviva logo are trademarks of Aviva plc. and are used under licence by Aviva Canada Inc. and its subsidiary companies.