Toronto widow shocked to find insurance premiums increased after husband's death
A Toronto woman said she was still dealing with the grief of her husband’s death last month when she found out her insurance company had increased her premiums.
“It really ticked me off because we have been with that insurance company for 19 years – 19 years and we never made a claim on the car or the house," Jo Waterhouse told CTV News Toronto.
Waterhouse said she and her husband David had been married for 41 years when he passed following a lengthy illness. After he died, she said she felt she should get her financial affairs in order.
“I told everybody about his passing, the government, financial institutions and I thought I should tell my insurance broker too,” she said.
But not long after she contacted her insurance company, she said she was told her home insurance premiums would be increasing $144 annually, and that she would need to pay a prorated charge of $47.52 immediately.
The reason? Her husband’s credit score was slightly better than hers was, she said.
“I can’t believe I’m being charged this,” she said. “Especially when you are grieving the loss of your soulmate and they stick this to you and it's not necessarily the money, it’s the principle.”
Your credit score is an important financial indicator mostly used to tell lenders if you're considered a good credit risk, but increasingly often, insurance companies have been using credit information to also determine how much to charge for home insurance.
“A lot of insurance companies will use credit scores to determine your home insurance premiums," Anne Marie Thomas, Director of Consumer and Industry Relations, with the Insurance Bureau of Canada (IBC), told CTV News Toronto.
IBC said a code of conduct was approved in 2021 to allow insurance companies to use credit information to set home insurance rates, and about 85 per cent of the insurer marketplace has agreed to the code.
It’s another reason to make sure your credit history and credit score remains in good standing.
“It's always a good idea to make sure your credit score is good and to check your credit score about once a year to make sure there are no errors,” Thomas said.
Waterhouse is insured by the Wawanesa Mutual Insurance Company.
Senior Communications Specialist Brad Hartle with Wawanesa told CTV News in a statement, “We extend our sincere condolences to Mrs. Waterhouse for her loss. After speaking with her broker, we have issued Mrs. Waterhouse a refund for the additional premium she was charged. In circumstances like this, it is not our intention to increase premiums. We will also be reaching out to Mrs. Waterhouse directly.”
Waterhouse said she now plans to shop around and check insurance quotes with other companies.
Not every insurance company uses credit scores to determine how much your home insurance premiums should be, so if you’re not sure of the policy, ask your insurance company to find out.
While insurance companies can use credit scores for home insurance purposes, they require your permission first, and if you decline, you could be charged a higher insurance rate than if you agreed to a credit check.
Insurance companies are not allowed to use credit scores to calculate how much you pay for auto insurance.
CTVNews.ca Top Stories
The story of how a B.C. man found his birth mother
After his adopted parents died, Dave Rogers set out to learn more about his birth mother. DNA results and a little help from friendly strangers would put him on a path to a small town in England.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Italy's white-collar mafia is making a business killing
Italy's mafia rarely dirties its hands with blood these days. Extortion rackets have gone out of fashion and murders are largely frowned upon by the godfathers.
Spike in 'violent rhetoric' since Oct. 7 attack from 'extremist actors,' CSIS warns
The Israel-Hamas war has led to a spike in 'violent rhetoric' from 'extremist actors' that could prompt some in Canada to turn to violence, the Canadian Security Intelligence Service warns.
Russia announces nuclear weapon drills after angry exchange with senior Western officials
Russia plans to hold drills simulating the use of battlefield nuclear weapons, the Defense Ministry announced Monday, days after the Kremlin reacted angrily to comments by senior Western officials about the war in Ukraine and Moscow warned that tensions with the West are deepening.
Summer forecast: What to expect as El Nino weakens
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Actor Bernard Hill, of 'Titanic' and 'Lord of the Rings,' has died at 79
Actor Bernard Hill, who delivered a rousing cry before leading his people into battle in 'The Lord of the Rings: The Return of the King' and went down with the ship as the captain in 'Titanic,' has died.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Israeli army tells Palestinians to evacuate parts of Gaza's Rafah ahead of an expected assault
The Israeli army ordered some 100,000 Palestinians on Monday to begin evacuating from the southern city of Rafah, signaling that a long-promised ground invasion there could be imminent and further complicating efforts to broker a cease-fire in Gaza.