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"Co-insurance is often misunderstood"
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Meet Your Broker - Matthew Peloquin

AUTHOR: Newman Insurance | April 18, 2017
CATEGORY: Meet Your Broker, 

I'm Matthew Peloquin and I've been with Newman Insurance since June of 2015.

I was born and raised in Cambridge, Ontario. Prior to joining Newman Insurance, I was in the automobile industry, working for Toyota. I spent 14 years in the Lexus department on quality control and vehicle performance. After that, we moved to the Warkworth area and I went into sales.

What I do at Newman Insurance

My main area of specialty at Newman Insurance is commercial and farm insurance. What I like most about these types of insurance is problem solving. Everybody has different needs, and providing the right solution for my customers is what I enjoy the most about my job.

What People Find Confusing About Insurance

I'd say that co-insurance is an often misunderstood portion of an insurance policy, especially on a commercial or farm account. Co-insurance is a clause on policies covering property such as building or contents (inventory/stock) of a business or a farm. It's expressed as a percentage number. The co-insurance can be 100%, 90% or 80%. That's to ensure that the client insures their building to its value, or as close to their value as possible.

A good example would be if there's an evaluation on a building of $1 million (based on the replacement cost: the building's materials, dimensions, age, etc.). If a client has a co-insurance clause on their policy of 90%, they must insure at least $900,000 for that building in order to get a full payment on partial losses. You have the right to insure for whatever amount you want. You can't insure something for more than it's worth, but you can go down to say, 60% if you wanted to. In which case, you would insure for $600,000. By doing that you're taking on part of the risk by not transferring all of it on to the insurance company. In essence you're accepting one third of the risk, which means you would only receive two thirds for damages on a claim.

Formula to Calculate Co-Insurance Claim Payout Amount

  Actual Insurance Amount x Amount of Loss = Amount of Claim  
  Required Insurance Amount
Example:
    • Building Value = $1,000,000
    • Co-insurance = 90%
    • Insurance Required = $900,000
    • Actual Insured Amount = $600,000
    • Amount of Loss Claimed = $300,000
    • Payout of Claim = $200,000

So, on a $300,000 claim you would receive $200,000 and that's how a co-insurance clause works.

Another area that people have misconceptions over is how their property is protected. Most people assume if say, a tree fell off their property on to a neighbor's shed, that they're responsible to replace that shed. But if it's a peril like fire or wind, that's caused  this tree from my property to fall on to yours; it's your property, your policy is going to respond to that, and it's not my load to bear.

What I Like About Newman Insurance

For me, the thing I like most about working at Newman, are the people here. I've been in insurance for 5 years, and I just started with Newman Insurance last year. I got to know Calvin personally, outside of insurance, through our wives, and we became friends. At that point, I was still in the automobile industry, working in sales. When I had the opportunity to get on board with Newman, I already had that comfort level to work with Calvin, but then I also know the people around him, they're all from my community. And they're what makes working here so great.

The Most Important Thing About Working with Clients

Solutions - I think that's my biggest thing. Making sure you understand your insurance policy. That you're comfortable, and understand that you're covered correctly. It's important to know that I've resolved any concerns. That an issue that you've brought to me, or a need, has been fulfilled.

I think I do this best by giving my clients the power, the knowledge, of what it is that they're doing through insurance. People just think insurance protects them when they have a loss, but it protects them in so many different ways, too.

What I Like to Do When I'm Not Working

I have two older daughters, and I've been married for 21 years. Usually I'm with my family or close to home, We've got a small hobby farm. Outside of that, you might find me playing with my band. I'm the drummer in a small rock and roll band. We play country and classic and new rock. If I'm not doing that I might be out fishing with a friend.

I also play hockey and I love golfing too. I watch a bit of golf, get to know the guys like Rory McIlroy. There's so many new, young, up and comers, too, but I've always liked Rory's style of playing.

As far as cuisine goes I like anything hot and spicy. Like Mexican or Indian foods. If I had to say my favorite, it'd be hard to pick one, but I would say Indian.

If I Were a Super Hero

If I had a superpower? Probably being able to cure people. The superpower to cure.

As for my personal kryptonite? My wife and two daughters. That'd probably be it, the women in my life, they're my kryptonite and they all know it.

If your claim is not of an urgent nature, we recommend that you speak with your Account Manager during regular office hours.

Claims emergency? click here

For non-urgent claims, we recommend speaking with your Account Manager during office hours.

Claims emergency? click here