Home insurance - what are you covered for?
Are you a first time home buyer and unsure what exactly you are buying insurance for?
Have you had insurance for a number of years but still aren't quite sure what you are paying for?
Each standard home insurance policy includes coverage for the following:
- Dwelling - provides coverage for damage caused to your home and any attached structure such as an attached garage or deck.
- Detached Structures - provides coverage for damage caused to a building on your property, separate from your house such as a detached garage or a shed.
- Personal Property - provides coverage for your belongings whether they are in your home or detached garage.
- Additional Living Expenses - provides coverage for any extra expenses you may have if you are unable to stay in your home during the repairs after a claim.
These can be expenses for hotel rooms or rent on an apartment if needed.
Some Optional Coverages You May Want To Consider:
- Sewer Back Up/Sump Pump Failure - can provide you with coverage in the event water comes into your home through your sewer lines or your sump pump fails.
- Scheduled Items - items such as jewellery, furs, collections, watercraft or bicycles can be subject to a limit in the policy. If you have a higher valued item, scheduling the article on your policy might be in your best interest.
- Service Line Coverage - can provide coverage for damage caused to underground service lines on your property such as data, hydro or water lines.
- Home Equipment Breakdown - can provide coverage for mechanical or electrical breakdown, rupture or bursting of your home - heating and/or cooling system.
- Overland Water - previously declined by all companies, this coverage can now be purchased with select markets. It can provide coverage if water enters your home through a window well after a heavy rainfall or if a body of water rises or overflows and causes damage to your home.
You want to make sure that the most valuable thing you own is insured properly!
When you are looking to purchase home insurance, here are a
few helpful tips to make sure you are getting exactly what you need:
- Find out when the furnace and shingles were last replaced on the home. These can affect not only the price but the coverage that might be available to you.
- Know what type of plumbing and electrical is in your home. This would include the amps of your electrical as well as the wiring type and the type of pipes in the home.
- Let us know if you have any business being run out of your home. Your home insurance policy may not provide enough coverage for your home business and we can help you get the proper insurance for the business.
- Find out of if the house has a sump pump and/or a backwater valve. If you are looking to purchase the Sewer Back up Coverage, the amount of coverage available to you can depend on whether or not these are installed in the home.
Types of coverage
While all standard home insurance policies will include coverage for the dwelling,
detached structures, personal property and additional living expenses,
there are two different types of policies you can opt for.
Broad Policy - provides All Risk coverage for your home and only Named Perils
coverage for your contents. This means that coverage would not be available for accidental loss or damage caused to your contents.
Comprehensive Policy - provides All Risk coverage on both the home and your
contents. Accidental loss or damage would be covered on your
contents under a Comprehensive policy.
Ways to Save!
With the cost of almost everything in our lives going up, it's nice to know
there are things we can do to help save ourselves some money! With home insurance,
there are a number of ways you can save money on your premium such as:
- Claims free for 3 years
- Monitored or local alarm system
- Having a newly built home
- Mortgage free
- New hot water tank
- Mature citizen
- Increasing the deductible