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
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Bouchard lifts Edmonton Oilers to 4-3 overtime win over Canucks in Game 2
Evan Bouchard scored 5:38 into overtime and the Edmonton Oilers bounced back for a 4-3 win over the Vancouver Canucks in the second round of the Stanley Cup playoffs on Friday.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.