IBC survey finds 37% of Quebecers lack home insurance
Published: September 6, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Home Insurance
A large number of Quebec tenants are without home insurance. A new study by the Insurance Bureau of Canada (IBC) shows that nearly four in 10 Quebec residents are without coverage, something the Bureau says is “a regrettable situation that clearly puts their financial security at risk.”
In a press release on Wednesday, IBC said its survey was carried out among 3,076 people in the province and it showed 37% of respondents lack home insurance. This means their property is not protected and they lack liability coverage.
IBC also sought to find the reasons for the coverage gap, concluding the following:
- Too expensive – Almost half (48%) of survey respondents said that the cost of insurance was the main reason. In fact, nearly 70% of insured tenants don’t pay more than $22 a month for their insurance, IBC reported;
- Little or no property to insure – the lack of personal property to insure or its low value was the second reason mentioned for not buying home insurance (one-third of respondents). IBC added that making an inventory of property often makes a person realize that they own more than they think;
- Covered by the owner – 15% of survey respondents falsely believe that the owner’s insurance will cover their personal property in case of loss. This is a widely-held belief among the 65 and over age group, who would refer to their owner in case of loss; and
- Negligence – 16% of respondents hadn’t given it any thought.
“These results show that we need to keep up the information and awareness activities with tenants,” IBC said in the release. “A large number of Quebecers still don’t realize the situation they would find themselves in if they were to lose everything in a fire, for example.”
Anne Morin, supervisor of public affairs for IBC believes the results show that many consumers still lack knowledge of the risks involved when not holding home insurance.
“In addition to losing everything and being homeless, uninsured tenants may have to indemnify the owner if they were responsible for the loss,” she said.
“It’s interesting to note that while they may be familiar with basic home insurance coverage, there are still many uninsured tenants who aren’t aware that they would be liable as a result of a loss for repairs or replacement of property damaged through their own fault,” Morin concluded.