Understanding Your Home Insurance Options

April 29, 2022

 

One thing is for sure, you must have a home insurance policy to protect your home and your possessions. However, many different home insurance providers are available in Canada, so how do you decide which one is right for you? If you're like most people, you may choose the first home insurance provider you find or a recommendation from a friend. But taking those approaches could cost you and affect your coverage.

Since finding proper insurance on your own can be difficult, if you don't know where to start comparing prices, you can visit https://brokerlink.ca to help you find the best insurance for your needs. However, even if you do decide to get help from them, it's important to learn the basics of home insurance on your own. Here are some tips to help you better understand home insurance.

Home Insurance Coverage Comes In Many Forms

Home insurance is the most basic of all types of insurance and is usually the first form of protection you should buy. It helps cover your home, its contents, and sometimes even your personal liability in case of an accident.

In Canada, most home insurance policies cover losses from fire, lightning, vandalism, theft, and acts of nature (such as floods). They also include liability coverage in case someone gets hurt on your property or a visitor sues you for an injury.

But it's important to understand that there are different types of home insurance coverage options. Many policies only cover replacement cost value—they're designed to get you back into your house as quickly as possible after a covered loss. Others offer replacement-cost-plus options, which also provide benefits for related expenses such as temporary housing costs, transportation fees, and storage fees.

If you have more than one piece of property or live near large bodies of water or places prone to severe weather conditions, you might consider extra coverage to help protect your belongings from the risk posed by those things. This could be in the form of extended coverage for additional living expenses and/or special perils such as earthquake coverage or windstorm coverage.

Optional Coverages (Endorsements) To Take Into Consideration

While most policies come with standard coverages, your insurer may also offer endorsements (also called optional coverages) that you can add to your policy. Some of these endorsements are available at an additional cost. Others may be included as part of your policy, depending on factors such as the type of home you have, where it's located, and what it's used for. Here are some common endorsements you may want to consider:

  • Water backup coverage;
  • Sewer backup coverage;
  • Earthquake coverage;
  • Flood coverage;
  • Overland water coverage.

Common Activities That May Have An Impact On Your Insurance

There are many factors that affect how much you pay for home insurance and how much coverage you can get, including:

  • Where your home is located;
  • What your house is made of;
  • How old it is;
  • What year it was built;
  • How close to fire stations or water sources it is positioned.

But some activities could also affect your coverage. So before you find yourself in a situation where something claims-related comes up, it's important to be familiar with them and decrease the chance of having your claims denied. Some examples include:

  • Not getting rid of debris that’s been piling around the outside walls after construction work has been completed on them (e.g., asbestos removal);
  • Having repeated flooding issues from snow melting off roofs or gutters overflowing during heavy rains without taking steps to prevent these problems again in future seasons like installing new drainage systems etc.

Providing Correct Information

While you're filling out your insurance application, it's important to fill out the application completely and honestly. As a general rule, if you don't know something, don't guess. When you provide incorrect information on your application, it can make it difficult for your insurance provider to help you when you do need assistance, or even worse, it could make you ineligible for coverage.

A good example of this is the question about previous insurance claims. If you previously filed a claim with your insurance provider but failed to note it on your current application, that claim could still be in effect and still be covered by your policy if you have been continuously insured with the same company. However, you might be considered a fraudulent claimant if you failed to disclose that information and then later made another claim and were denied because of non-disclosure.

Final Thoughts

Home insurance offers many protection benefits and can be very useful in keeping your possessions safe and secure. What kind of coverage you need, who to choose for your home insurance provider, and all sorts of other factors will affect the cost of your home insurance policy. That's why it pays to shop around to find the best home insurance policy for you at the right price.

 

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Thomas P
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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