Why is home insurance essential?
Though not legally required in Ontario, most mortgage providers insist on home insurance.
It safeguards your property, personal items, and provides liability coverage, ensuring the protection of your investment.
Most lenders expect it as they have a financial stake in your property. Be wary of any lender who doesn’t request it.
What is home insurance?
Home insurance is protection against unanticipated damage to your property and personal belongings. It covers injury costs on your premises or damage you might accidentally cause to someone else’s property. It may also cover living expenses if you must temporarily relocate due to damage.
Here are some of the most important terms you’ll encounter while discussing home insurance:
The maximum sum your insurer can cover for a particular event.
Policy:
Describes the specifics of your coverage.
Premium:
The regular fee for maintaining your policy. Higher risk equates to higher premium.
Claim:
Your request to your insurer to cover costs you believe are covered under your policy.
Deductible:
Your initial payment when making a claim. Your insurer covers the remainder (up to your limit).
Choosing the right home insurance
The right policy can safeguard you against unexpected events. Let’s take a look at the types of property insurance available to you.
Homeowners: This insurance covers private homes, their contents, and homeowner liability.
Renters*: Renters insurance protects tenant belongings and provides liability coverage.
Condo: Condo insurance protects individual condo units and contents and may cover living expenses during repairs.
Seasonal: Seasonal home insurance covers property structures, contents, and provides liability.
*Renters require home insurance too, as a landlord’s coverage doesn’t extend to tenant belongings. As a renter, your insurance will cover liabilities and living expenses if relocation becomes necessary due to repairs.
What does my home insurance cover?
Home insurance can safeguard your home, its contents, property, and additional structures. Policy coverage is determined by your provider, the premiums you’re willing to pay, and your acceptable deductible. In events like a kitchen fire, home insurance covers repair and replacement costs. Additional coverage can be added for more protection.
The specifics of home insurance differ for condo owners and renters. Condo policies typically cover improvements and belongings, while renter policies mainly protect belongings.
Pricing and options depend on various factors like location, home size, building age, and construction type. Available discounts also influence coverage costs and include options like newer home, non-smoker, and multi-line bundle.
Personal property & personal
liability insurance
Your belongings, referred to as personal property, are protected under home insurance, even outside your home. Compensation for damage or theft is based on the item’s cash value, although replacement cost policies are also available. High-value items may require additional coverage.
Home insurance also covers potential liability risks. If someone gets injured or their property is damaged on your premises, your home insurance may cover the costs. Additionally, if you cause damage or injury in another’s home, your insurance could cover legal costs and damages.
Let us get you the best property quote!