Author: Courtney Collings

Top 3 Reasons You Need Winter Tires

As the temperature drops and our days shorten, Canadian start to gather their winter essentials; thick coats, warm boots, bags of salt and a sturdy shovel. Winter tires, on the other hand, have always been a point of debate. Some people say they can’t live without them while others say they’re not worth the price tag. Below, you’ll find three reasons why snow tires really are a winter essential.

1. They’re Built for the Snow

Tires have to meet strict performance criteria in order to earn the coveted “winter tire” label. When temperatures drop, the rubber used for regular or “all-season” tires hardens making them ineffective on the slick roadways. The rubber used for snow tires, on the other hand, stays soft which allows them to better conform to the texture of the snow and ice covered roads.

2. They Have Unique Treads

Snow tires have unique treads that are wider and larger than standard “all season” tires. The tread on snow tires have two functions. First, it’s designed to wick away moisture from the tires main point of contact which allows for more control. Second, the larger tread means that when the tires rotate, they can grip into the ice and snow and, ultimately, kick it out behind them as the vehicle moves along the slick surface.

3. Better Stopping

Starting a vehicle in slick conditions is hard. Stopping a vehicle in slick conditions is even harder. Studies have shown that snow tires can decrease your stopping distance by up to 37%. That is an enormous advantage on our snowy northern roads. This could not only prevent an accident, it could end up saving a life.

When In Doubt, Stay Off The Roads

We encourage all drivers to consider purchasing a set of high quality winter tires for their vehicles. Winter tires give you more control in snowy conditions. With that said, if the road are bad and you don’t have to drive, the safest option is always to stay put until the weather – and the roads – clear up.

Discounts Available – Call Your Broker!

If you do have winter tires, be sure to call your broker today. You may qualify for a discount on your auto insurance!

Realty Series: The Government’s Strategy to Cool the Market – is it working?

In April of this year, the Ontario government implemented a 16-point plan to help tame the raging housing market in and around the Toronto area. This plan included a range of tactics from slapping on a 15% foreign buys tax to expanding the current rent control rules. Given this plan’s recent implementation, we’ve asked Christine Tetstall, an agent from Sutton Group Associates Inc. who specializes in the Toronto realty market, for her opinion on whether or not these measures are working.

According to Toronto Real Estate Board (TREB) President Larry Cerqua, there was a significant increase of 33% in new listings in April compared to April 2016. It was also stated that sales dropped by 3% since April 2016. These facts can be considered encouraging, giving hope that a more balanced market is on the horizon. Have the government’s imposed measures to cool the market already made an impact? Debatable.

I agree that there has been a slight slowdown in the market, however, I am not seeing a marked decrease in prices. There are still bidding wars, just less buyers competing with each other. For example, there may be 2 or 3 buyers bidding on the same property as opposed to 14 or 15. Accordingly, although there is more inventory, buyers still outnumber what is available, and prices are still soaring. As an illustration, TREB reported that the average selling price in April was $920k, compared to the average sales price in 2016 at $739k. Admittedly, there is more inventory and a slight drop in sales, but there has not been a notable drop in prices. It is plausible that the modest dip in the market may have been a response to the government’s imposed changes, and as legislation has not backed up the changes yet, the market could easily return to red hot.

Christine Tetstall

Christine is an agent with Sutton Group Associates Inc., Brokerage in Toronto. She specializes in the Toronto realty market. You can reach her by email at chtetstall@gmail.com or by phone at 416-966-0300. You can also find her online at www.christinetetstall.com.

The Disaster Financial Assistance Program

Just a quick post today as we make our way into a weekend full of rain, rain and more rain.

This weekend, risk of flooding is at a peak and many Canadians still don’t have the coverage they need for damage caused by flooding and overland water.

For those Canadians without flood insurance, we want you to know that there is help available. You can make a claim through the federal Emergency Management Office of the Public Safety Minster. From there, you can apply for the Disaster Financial Assistance Program provided by the provincial government.

Please see this great article just posted by the Globe & Mail for further details:

http://globalnews.ca/news/3425571/flood-insurance-canada/

Stay safe!

Accident Benefits: Income Replacement Benefit

This is the third entry in our Accidents Benefits series. You can find the first entry here where we discuss the basic changes the Provincial Government made to the accident benefits portion of Ontario auto policies during the 2016 auto reform. In the second entry, we explored the Medical, Rehabilitation & Attendant Care Benefit.

Today, we’re going to shine the spotlight on one of the optional coverages available to policyholders for purchase: the Income Replacement benefit.

WHAT DOES IT COVER?

If you are injured in an auto accident and are unable to work, the Income Replacement benefit provides coverage for a regular weekly income starting one week after the accident. The benefit payout is 70% of your gross income up to a maximum of $400 per week.

WHAT ARE YOUR OPTIONS?

Policyholders have the option to increase their weekly maximum to $600, $800, or $1,000 per week. Keep in mind that, regardless of the limit you select, the amount you receive will always be 70% of your gross income up to the weekly maximum you have selected.

This is a very important coverage option everyone should explore, especially those who:

are self-employed
have no benefits through work or other associations
make over $30,000 per year

All policyholders should review and re-asses this coverage on an annual basis. A lot can happen in a year: a promotion, a new job, starting your own business. Your auto policy’s limits and coverages need to be reviewed and updated as your lifestyle changes.

Contact your broker today to review your current limits and go over the other coverage options available to you. Don’t wait until you’ve had an accident to find out you don’t have the coverage you need.

Tenant’s Insurance: Why You Need It

There’s a common misconception floating around that if you’re a renter, you don’t need property insurance. Often times when we advise a client they should have a tenant’s package, a common rebuttal is “I’m not going to bother. My stuff isn’t worth anything.”

The reality is that tenant’s insurance is about more than just covering your stuff. Below you’ll find a few good reasons to purchase tenant’s insurance.

1) Covers your belongings

Tenant’s insurance obviously covers your personal effects. As far as the famous argument “my stuff isn’t worth anything,” if you lost everything in a fire right now, are you in a financial position to replace it all yourself? Think about all your clothing including items like shoes, coats, and hats. Personal accessories like your computer and phone. What about household items? Dishes, kitchen utensils, towels, sheets, blankets. And don’t forget about the fun stuff like sports equipment and your hobbies!

All these things that you use day to day have value and, while their financial value may be individually insignificant, combined it all adds up. Most of us aren’t in a financial position to replace our belongings if we lost it all today. With tenant’s insurance, you can rest easy knowing your belongings are covered.

2) Offers legal protection

Let’s say someone comes into your apartment. They trip over the edge of your area rug, fall and injure themselves. Next thing you know, you’re being slapped with a lawsuit holding you financially responsible for their pain, suffering and any incurred medical costs.

Ultimately, tenants are responsible for any harm that may be caused to anyone visiting their rental unit. If you have a tenant’s package in place, your personal liability coverage would kick in to defend you against this lawsuit. Without this coverage however, it’s up to you to cover these legal costs on your own.

3) Covers additional living expenses

Now let’s pretend there’s been a fire in your rental unit. You’re forced to find housing elsewhere while it’s being repaired. Not to worry though. If you have a tenant’s package you’ve got coverage for these extra living expenses incurred while your apartment is under repair. This would include expenses such as hotel bills, restaurant meals, and any incurred moving costs.

4) It’s inexpensive

Tenant’s packages are relatively inexpensive especially considering the coverage and peace of mind they provide. A typical premium usually sits around $25 per month depending on the location, construction of the dwelling and the required contents limit.

Contact your broker today to find out more about how tenant’s insurance can protect you. It’s a small policy that has a huge impact.

Investment Series: the Client Relationship Model II

Protecting your assets involves more than the right insurance policy. Today on the blog, we bring you an article by investment advisor Rob Bradshaw that looks at some changes happening in the investment industry of which all investors need to be aware.

There are some regulatory reporting changes coming to the Canadian investment industry that are meant to provide investors with more details of the costs of their investment advice and how their investments are performing. The investment regulators want to ensure investors receive sound fee disclosure to avoid any conflict of interest between the advice your advisor provides and the solutions you need.

So how does this affect you?

The most noticeable result of the new regulation (called the Client Relationship Model II or “CRM2”), will take the form of two new reports that most investors in Canada will receive by early to mid-2017. These reports will provide you with two key pieces of information.

The “Cost” report details the costs paid to your advisor firm for providing advice and service on your investments. This includes costs you may pay such as: fee-based account costs, commissions, as well as some costs paid by third parties, that have been difficult to discern in dollar values, until now.

It is important to note what is not included in these Cost reports: most insurance products, and in some cases, segregated funds, are not being reported. Also, if you own a mutual fund, you should be aware that the annual fee you pay (the management expense ratio or “MER”), is also not shown in the reports— only the portion of the MER that the advisor firm receives for advice and service, called the “trailing commission” will be disclosed.

The “Performance” report provides you with a “money-weighted rate of return”, different from the more commonly used “time-weighted rate of return”; and interestingly, going forward the report will show the return for 1, 3, 5, 10 and since inception time periods, as they become available.

With this additional transparency on costs and performance of your account, you may ask “What value am I getting from my advisor for the costs I pay and am I progressing towards my goals?” Your current advisor should be able to answer those questions clearly, if not, talk to someone who can. As an investor you should have a clear understanding of the costs and performance associated with your investments and the value you are receiving from your advisor.

Enhanced transparency that CRM2 will bring to our industry is positive for you as an investor as it enables you to have a clear understanding of how you are progressing towards your financial goals.

Rob Bradshaw is an IIROC licensed advisor in Aurora, at RBC Dominion Securities, has over a decade of experience in financial markets; focusing on portfolio solutions and financial plans for affluent families and professionals. He can be reached at robin.bradshaw@rbc.com.