News

PST on Insurance Premiums
July 21, 2017

There has been a lot of talk lately regarding the Saskatchewan Party’s budget announcement on March 22, 2017 however one change that has gone relatively unnoticed is the implementation of PST on ALL insurance premiums.

We are by now all very aware of the change in tax from 5% to 6% however very few people are aware, at least until they receive their invoice, that this will also apply to their driver’s license, vehicle registration, extension automobile policies, home insurance, business insurance and so much more.

August 1, 2017 will mark the date that insurance policies will be subject to PST in Saskatchewan however this is not new in Canada with Ontario applying tax at 8% in July 2010, Manitoba applied tax at 8% in July 2012 and Newfoundland implemented a tax at a whopping 15% in July 2016.

While the implementation date of the tax is August 1, 2017 the tax will not apply to all transactions immediately:

  • Tax will apply to new and renewal policies with an effective on or after August 1, 2017 along with all policy changes made after renewal
  • Tax will not apply to new or renewal policies with an effective date prior to August 1, 2017 until the next renewal (i.e. Policy effective date July 31, 2017 will not be subject to PST until July 31, 2018)
  • Tax will not apply to changes made throughout the policy term of a policy with an effective date prior to August 1, 2017 (i.e. Policy effective July 31, 2017 with a policy change made effective June 1, 2018 will not be subject to PST)

Your invoice or payment plan will indicate any applicable tax.  Please review these documents for full details.

For more information, questions, comments or concerns visit www.finance.gov.sk.ca/taxes or contact the Ministry of Finance at 1-800-667-6102.

Water Protection & Sewer Backup Coverage
July 19, 2017

Over the past years stormy weather has continued to increase in frequency and severity throughout Canada. As a result, many insurance companies have deemed it necessary to adjust what, how and when coverage is provided, the policy premium rating and how claims are adjusted.

Many companies have created Water Protection or Water Defence coverage in the event of the following types of losses:

Sewer Backup - water or sewage backup, escape or overflow from the sewer line, sump or septic tank

SGI Water Protection - covers for loss caused by flood, surface water, the sudden and accidental entrance of ground water that results at the same time as a water event (backup of water, accidental discharge or escape or overflow of water or sewage including sewer backup)

Aviva Overland Water - covers for loss or damage caused by the unusual or rapid accumulation or run off of surface waters from any source including rainfall and the rising or breaking out of the overflow of any body of fresh water

Wawanesa Water Defence - covers loss or damage from water that accumulates on land which is usually dry, resulting from unusual or rapid accumulation or runoff of water or natural precipitation, not caused by escape from a "domestic water container" or " water main" and the rising of, breaking out or the overflow of any body of water or watercourse, whether natural or man-made (e.g.. river flooding), as well as sewer backup resulting from overland water where there is evidence that the overland water has entered the dwelling where the loss occurred.

**IMPORTANT** - the coverages indicated above may not include loss or damage due to water escape or rupture from a plumbing system.  Please review your specific policy wording as these losses may be covered elsewhere and be subject to separate terms and conditions.

Q. How can this affect your policy?

A. Many companies have changed the way their sewer backup coverage will respond in the event of a loss if you do not also carry the water coverage. In most cases, where you were eligible to purchase water coverage but chose not to, the insurance company will deny your sewer backup claim if there is evidence that water was also entering the home from another location and from a different source.

Q. How do I know if I have coverage?

A. There are a couple ways you can check your coverage:

  1. Check your policy documents for the words "Water Protection Coverage", "Water Defence Coverage" or "Overland Water Coverage"; or
  2. Contact your broker either by phone or email
  3. If you are not sure of your brokers email, contact our general inquires email at info@cherryinsurance.net

Q. I don't see the coverage listed on my policy documents but would like to add it, what do I do?

A. If you would like to determine if you are eligible for water coverage or receive a quote to have this coverage added, please contact your broker.  If you are unsure of your brokers contact information, please email our general inquiries at info@cherryinsurance.net

It is important to note that all policies contain conditions, limitations and exclusions.  To review your policy wordings for further information please visit the Policy Information area of our website.

Want to save money on roof insurance?
May 26, 2017

Want to save money on roof insurance?  Introducing hail-resistant roofs: http://www.insurance-canada.ca/claims/other/IENGAHail407.php

ATTENTION: Wawanesa Rating Structure Changes
May 26, 2017

Starting October 1, 2015 Wawanesa has made changes to their rating structure with significant changes being applied to Sewer Backup and Wind & Hail. Wawanesa will be moving towards a predictive modeling rating method which they believe will help them refine their rating variables by tailoring premiums to individual rate characteristics.Click here for FAQ's regarding the change or check the POLICY INFO section for more information.

News


 
Main Branch,
Downtown Office

Hours: Mon. to Fri. 8am - 5pm

350 3rd Avenue S
Saskatoon, SK   S7K 1M5

Erindale Office

Hours:
Mon. to Fri. 8:30am - 6pm
Sat. 9am - 5pm

#118 - 1820 McOrmond Dr.
Saskatoon, SK   S7S 0A6

Stonebridge Office

Hours:
Mon. to Wed. 8:30am - 6pm
Thurs. 8:30am - 8:00pm
Fri. 8:30am - 6pm
Sat. 10am - 6pm

#118 - 3126 Clarence Ave. S
Saskatoon, SK   S7T 0C9

Circle Drive Office

Hours:
Mon. to Fri. 8am - 6pm
Sat. 10am - 6pm

206 Circle Dr. E
Saskatoon, SK   S7K 0T5

North Battleford Office

Hours:
Mon. to Fri. 9am - 5:30pm
Sat. 10am - 4pm

1392 100th St.
North Battleford, SK   S9A 0V8

Prince Albert Office

Hours:
Mon. to Fri. 8:30am - 5pm
Sat. 10am - 4pm

1308 1st Ave. E
Prince Albert, SK   S6V 2B1

© Copyright Cherry Insurance 2017 Terms of Use   |    Privacy Policy