A home is often the largest financial investment someone will ever make. Depending on coverage, home insurance can ensure that investment is protected in the event of a fire, flood, theft or natural disaster by providing financial aid to help cover the cost to replace or repair damages or stolen goods. There are a variety of coverages that may apply. Here are a few common types:
- House Insurance- House insurance covers the home, its contents, as well as any outbuildings that may be on the property, such as a garage or shed, and typically comes with liability insurance.
- Condo Insurance- Like house insurance, condo insurance covers the suite and its contents, and liability insurance is generally included. It can also cover building maintenance fees and a proportionate amount of the strata’s costs to repair damages to the building. The strata’s insurance will cover the replacement cost of the building itself minus any upgrades or personal belongings you may have.
- Liability Insurance- Liability insurance is included in most home insurance packages and protects homeowners against lawsuits or claims that could result if an individual is injured on their property. This form of insurance can also cover homeowners from the cost to repair damages they might accidentally inflict on another property or person.
- Common Elements Loss Coverage- Common elements loss coverage protects condo owners in the event that they or an event in their unit causes damage to another unit within the common property (same building). This will help cover the cost to repair damage to a neighbouring unit(s) if a flood, fire or any other circumstance occurs.
- Deductible- A deductible is a pre-determined fee an insured homeowner has to pay in order for their insurer to cover the costs of their claim. In the event of a claim, this expense must be paid before an insurer will provide any financial assistance.
- Personal Property Coverage- If your home is a rental, you should consider having personal property coverage, which only covers items left behind in the unit but not your tenants’ property. As well, you can add a rental value endorsement, which is also suggested to help cover lost income if the property is ever damaged and cannot be rented again until repairs are complete.
- Rented Dwelling Liability Coverage- Rented dwelling liability coverage financially protects homeowners in the event that their rental property is damaged or an individual is unintentionally injured while on the premises, even by a tenant.
Homeowners who do not make claims are eligible for significant discounts on their home insurance premiums. Typically, the discount starts after 3 years, but many insurers will apply discounts after a homeowner has been claim-free for 5 or 10 years.
Home insurance is something that you can’t fully appreciate until you actually need it, and while it is an added cost, it is well worth the financial protection and security that it affords. By proactively investing in the right coverage, homeowners can save themselves from the devastating expenses associated with unexpected accidents or damage.
We hope you have found this informative, and we look forward to assisting you in the future.