Q: What insurance do I have to carry on my car?

A. As a minimum, Canadians are required by law to have their vehicles insured against an accident that might injure or kill someone, or damage their property. This coverage is called "Third Party Liability". Basic coverage also includes benefits to you if you are injured in an accident. This coverage is called "Accident Benefits."

A. Unfortunately, having the minimum amount of compulsory auto insurance won't necessarily keep you out of Court. If you cause a serious accident, the people you hurt may be awarded damages in Court that are greater than your insurance coverage. That is why you should carry more insurance than the basic minimum. Liability/Personal Injury settlements of $3,000,000+ are becoming more common in Nova Scotia.

A. In the language of insurance, an endorsement has nothing to do with paid celebrities saying nice things about a product. It's an "optional extra" to beef up your basic insurance. With one type of endorsement, you'd receive the purchase price of your car if it was written off in accident within 24 months of buying it new. Another covers the cost of a rental car (up to a maximum amount), even after an accident that was partly or entirely your fault.

A. Since the cost of auto body repairs keeps going up, it's wise to have insurance to cover damages to your own vehicle. This coverage is called "physical damage," and can include collision, comprehensive, or both. This type of insurance is compulsory in Manitoba and Saskatchewan, and if you finance or lease a car, your bank or leasing company will likely require you have it.

A. Collision insurance covers damage to your car as a result of an upset, or an impact with another object. Comprehensive coverage insures against damage to your vehicle from causes such as vandalism, theft, or a flowerpot landing on your hood from a 9th floor balcony.

A. Insurance on your own vehicle is usually subject to a deductible, in which you pay a specific amount toward the cost of repairs. Some people prefer a larger deductible because it lowers the premium. However, deductibles may be waived in certain non-accident situations, such as a car lost to fire, lightning, or theft, and in certain accident situations where the other driver is totally at fault.

A. Yes. Just ask your broker or insurer for an "endorsement" on your policy that covers damage to non-owned autos, for the period of time that you need that coverage.

A. Very Much so, although there are extensive similarities. There are generally three types of policies, they are known in the industry as the Standard ( or basic), the Broad, and the Comprehensive.

The " Standard" provides protection against a number of named perils that might cause damage to the dwelling and it's contents. Named perils could include such things as fire, lightning, windstorm, hail theft, and specific types of water damage.

The "Broad" policy improves named perils coverage on a dwelling to "all risks" coverage, but leaves the contents coverage on a named perils basis. ("All risks" coverage provides protection from anything that can cause you loss or damage, unless the policy specifically excludes that cause of damage). Typical exclusions on "all risks" policy could include faulty workmanship -- e.g., your roof shingling was not properly installed and the shingles are now causing water to leak into your home, or wear and tear-- even "all risks" policies would not provide protection if some component of your home or contents simply wore out.)

The "Comprehensive" policy provides all risks coverage on both the dwelling AND the contents.

A. These items are covered under the home policy as part of the contents of the home. They are, however, only covered for the perils of the main policy and are also subject to any dollar limitation in that policy.

Neither the Standard nor the Broad policy, therefore, would provide coverage if you lost such an item, since these policies are written on a Named Peril basis for the contents coverage. While the Comprehensive coverage would most likely cover "lost" jewelry, it would be subject to a relatively low dollar limit of a few thousand dollars.

People therefore tend to add jewelry on specific riders to obtain better (all risks) coverage if the policy is a Standard or Broad, and to eliminate the dollar limitation.

Make sure you have your agent or broker explain the various options to you. At the lower end of the scale, water damage caused by water overflow from the plumbing system, water from burst pipes, and also frozen pipes could be covered, but not damage caused by continuous seepage, sewer backup, etc. With this very significant peril that can cause so much damage, it is important that you understand precisely what your policy covers -- and what is excluded.

A. You really need to have your agent or broker explain the various options to you. At the low end of the scale, water damage caused by water overflow from the plumbing system, water from burst pipes, and also frozen pipes could be covered, but not damage caused by continuous seepage, sewer backup, etc. With this very significant peril that can cause so much damage, it is important that you understand precisely what your policy covers, and, what is excluded.

A. You will need to have your agent or broker explain this to you. Most building settlements are on a non-depreciated basis, and many policies settle contents on the same basis. Such a settlement on contents normally requires that you actually replace. Should you choose to settle on a cash basis, the settlement reverts to a depreciated one.

A. Excellent question! Most likely -- no. You should inquire with your agent or broker about this. Most property policies do not pay for this. You should also think in terms here of your cottage coverage. For example, local bylaws may require that a replacement cottage be moved further back from the lake, possibly involving significant extra expense.

A. Yes, if for no other reason than the damage you could very easily cause to your own apartment (and other ones too) from, say, a kitchen grease fire or the overflow of water from your sink. Like Homeowner policies, the Tenant policy not only protects your own belongings, but also provides protection against damage you might cause to others.

Q: Can I Share My CPP Benefits

A. If you and your spouse are over 60 and you’re collecting CPP benefits, you may be able to save on taxes by splitting some of your CPP income. You can direct that up to 50% of your CPP benefits be paid to your spouse, depending on how long you lived together while you were making your contributions to the plan. If either of you does this, a portion of the other spouse’s CPP is assigned automatically back to the first spouse so both spouses will receive equal payments. If both spouses are eligible for maximum CPP benefits, the assignment won’t change anything, but if one of you has high CPP benefits and the other has low benefits or none, the assignment can effectively transfer up to half of the CPP income to the lower-income spouse so it will attract a lower rate of tax.