Climate change and personal finance

Wildfires, floods and multi-generational households

Canadians this summer are contending with high interest rates, floods and wildfires. There is unprecedented property damage across the country, as well as frustration with the inability to afford home purchases.

Many families have come together to assist one another by buying together. Others have welcomed back adult children and their families into the family home at reduced rent so they can save up for a down-payment.

When catastrophe strikes, homeowners insurance is available to help the homeowners and their dependent children. It’s important to check with a licensed insurance advisor if and how to add your adult children to your policy. If they are not added, you may find the temporary accommodation insurance provides to only be sufficient for you and your spouse.

The reduced rent they were paying you, and any other alternate arrangement that was assisting you financially, may also not be covered. It’s again important to check with your insurance what they require to provide you with loss of income protection. This also applies if you were using some of your rooms as short-term rentals on sites such as airbnb.

Lastly, the insurer will handle the claim with the named persons on the policy and policy holder. Most computer setups for video games can cost upwards of $1,000. However older adults may not know that and when handling the claim, may put a much lower amount, as they may not be aware.

Imagine having to explain to your mom that your wife’s shoe and handbag collection were worth over $5,000 and asking her for your portion of the insurance check. This is a situation where it’s best to have tenant insurance, even when staying with your parents. You control your portion of the claim and reduce the risk.

For those across Canada currently navigating the current crisis, our thoughts are with you. For those with relatable living situations to those described above, we recommend reviewing your insurance policies with a licensed insurance provider, as many analysts foresee an increase in catastrophic events.

To discuss your individual financial situation please contact us at gracechenesai@gmail.com