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
Canada Disability Benefit needs to be safeguarded from clawbacks, MPs unanimously agree
The federal government needs to safeguard the incoming Canada Disability Benefit from clawbacks and do more to ensure it actually meets the stated aim of lifting people living with disabilities out of poverty, MPs from all parties agree.
Security guard shot, seriously injured outside of Drake's Toronto mansion
A security guard working at Drake’s Bridle Path mansion in Toronto was seriously injured in a shooting outside the residence early Tuesday morning, police said.
King Charles too busy to see son Prince Harry during U.K. trip
Prince Harry will not be seeing his father King Charles during his current visit to Britain as the monarch will be too busy, Harry's spokesperson said on Tuesday.
opinion Tom Mulcair: Turfing Poilievre from House a clear sign of desperation by Trudeau Liberals
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca
Apple unveils new iPad Pro with 'outrageously powerful' AI-powered chip
Apple is hoping its latest iPad lineup will breathe new life into its sluggish tablet market. In a pre-recorded live streamed event from its Cupertino, California headquarters, the company introduced the latest versions of its iPad Pro and iPad Air tablets, and an all-new Apple Pencil Pro.
Your body needs these three forms of movement every week
Movement is movement, right? Not exactly. Here’s what your body is looking for in addition to your morning walk or yoga session, according to experts.
Testifying in hush money trial, adult film actor Stormy Daniels describes first meeting Trump
Stormy Daniels took the witness stand Tuesday in the hush money trial of former U.S. president Donald Trump, prepared to testify about a sexual encounter the porn actor says she had in 2006 that resulted in her being paid off to keep silent during the presidential election 10 years later.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.