Mortgage companies in Canada require you to 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. Here's what you need to know to help you find the right home insurance for you and your family.
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.
A home insurance policy covers the cost of replacing your home and things in it, in the event of fire, damage or theft. 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.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Specific perils are set out in the policy; basic home insurance covers only these. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
What amount of coverage is sufficient?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; base how much replacement coverage you'll need on that figure. 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.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
Finally, liability coverage is important to protect you in case 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.
What does it cost?
The cost of a home insurance policy depends on how much coverage is required, your chosen deductible, the location and other considerations. Generally speaking, more coverage means more cost.
A deductible is the amount which you are required to pay against the full cost of the damage or repairs. You can choose to raise or lower your deductible when you purchase your insurance policy. In general, with a higher deductible, you have lower monthly premiums. Before you buy, it's important to shop around and ask your insurance representative if you have any questions or concerns.
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.
A home insurance policy covers the cost of replacing your home and things in it, in the event of fire, damage or theft. 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.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Specific perils are set out in the policy; basic home insurance covers only these. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
What amount of coverage is sufficient?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; base how much replacement coverage you'll need on that figure. 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.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
Finally, liability coverage is important to protect you in case 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.
What does it cost?
The cost of a home insurance policy depends on how much coverage is required, your chosen deductible, the location and other considerations. Generally speaking, more coverage means more cost.
A deductible is the amount which you are required to pay against the full cost of the damage or repairs. You can choose to raise or lower your deductible when you purchase your insurance policy. In general, with a higher deductible, you have lower monthly premiums. Before you buy, it's important to shop around and ask your insurance representative if you have any questions or concerns.
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