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Home Insurance For Your New Home
You must buy home insurance to cover the balance of your mortgage should your home need to be replaced or repaired due to fire or other damage; this is required by Canadian mortgage companies. If you're looking for the right home insurance for you and your family, here's what you need to know.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. It protects you from liability too, in the event that someone's belongings are damaged while they're in your home, or if someone hurts themselves while on your property.
A comprehensive home insurance policy covers your home for all risks; natural disasters are not usually covered by insurance policies though.
Specific perils are set out in the policy; basic home insurance covers only these. It doesn't cover as many possible hazards as a comprehensive policy, so it's a cheaper option. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
If your insurance covers enough for you to entirely rebuild and furnish your home, if it were completely destroyed, your home-insurance policy is adequate. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you'll need. Remember to note all the expensive/unique details that would drive up the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
Inventory the contents of your home and all your personal possessions - if you have to file a claim for damages or theft, this helps ensure that you are completely covered and reimbursed.
If something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged, liability coverage protects you.
What will it cost?
The cost of your home insurance policy varies depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors. Generally speaking, more coverage means more cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. It protects you from liability too, in the event that someone's belongings are damaged while they're in your home, or if someone hurts themselves while on your property.
A comprehensive home insurance policy covers your home for all risks; natural disasters are not usually covered by insurance policies though.
Specific perils are set out in the policy; basic home insurance covers only these. It doesn't cover as many possible hazards as a comprehensive policy, so it's a cheaper option. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
If your insurance covers enough for you to entirely rebuild and furnish your home, if it were completely destroyed, your home-insurance policy is adequate. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you'll need. Remember to note all the expensive/unique details that would drive up the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
Inventory the contents of your home and all your personal possessions - if you have to file a claim for damages or theft, this helps ensure that you are completely covered and reimbursed.
If something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged, liability coverage protects you.
What will it cost?
The cost of your home insurance policy varies depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors. Generally speaking, more coverage means more cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
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