Homeowner’s Insurance Explained: What You Need To Understand
Updated: Dec 6, 2021
It is not every day that you get to buy the house of your dreams, right? Not only is it a product of your hard work, but it is the realization of a childhood dream. It is for these reasons that homeowners look into buying insurance to protect their property in case something happens to it or when it gets damaged.
Did you know homeowner’s insurance covers more than just the physical structure of the property? It also covers potential liability to guests who may get injured while in your house, replacement in case it becomes a victim of theft as well as other unforeseen yet unfortunate events.
What does my Home Insurance Cover?
While different areas and insurance companies in Canada offer variations in insurance policies, their coverage is very much alike. They typically cover the structure and the contents of the home against most natural disasters like the storm or fire or even crimes of burglary or vandalism. In many areas, damages caused by flood because of the heavy rain or the river overflowing are not covered by the basic home insurance. If you live in an area frequented by storm or near a body of water, it is best to talk to your insurance provider about this. They could explain the specifics of the coverage with you as well as the additional cost to include such coverage if there are any.
How to Get the Right Policy?
The first step is to simply choose the company and buy your policy from them. However, with the various insurance company and even more confusing insurance programs, picking the right policy might be more of a challenge. Depending on your credit history, past insurance coverage and former claims you have made, the company will offer you the best possible program you can avail of. The premium you pay for monthly depends on the coverage you signed up for, the terms of payment as well as the total amount of policy you bought.
How Much Coverage Should I Buy?
To determine the coverage you should buy, it takes help from a licensed insurance broker. Their practice and years of experience will help you compute for the replacement cost of the property and everything inside it or repair cost if needed. You should ask your insurance agent to help you make the right choice. Make sure to talk to someone you can trust to include all the possible hazards and damages that may put your home at risk.