Canadians don’t understand insurance products

By Staff | August 30, 2012 | Last updated on August 30, 2012
1 min read

Canadian consumers know little about insurance products, says a study released by Desjardins Group.

Worse, their money managing habits haven’t changed since last year; few are aware of how their plans work or how they can use them.

The study finds only 44% know not all insurance policies come with surrender value, while only 45% know water damage is the most common type of claim filed by homeowners.

Close to 40% of those protected by home insurance don’t keep any of the lists, sales slips or photos of their most valuable assets, which would help them submit an accurate claim in the event of a loss. Another 30% of those polled aren’t sure whether their credit card covers travel insurance.

In terms of mortgages, a third of Canadians either opted for or refused a mortgage insurance product this year without first assessing their financial situation or comparing market costs. Read: Rookie mistakes of homebuyers

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The staff of have been covering news for financial advisors since 1998.