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. Here are some tips to help you find home insurance that is right for your family and you.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
Home insurance is an insurance policy that you purchase to cover the cost of replacing your home and its contents in the case of a 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.
Your home will be covered for all risks with a comprehensive home insurance policy; natural disasters are not usually covered by insurance policies though.
Basic home insurance only covers the specific perils that are set out in the policy. 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; base how much replacement coverage you'll need on that figure. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
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 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.
A deductible is the amount which you are required to pay against the full cost of the damage or repairs. The deductible amount can be chosen at the time you purchase your insurance policy. Generally, the higher deductible you choose, the lower your monthly premiums will be. Before you buy, it's important to shop around and ask your insurance representative if you have any questions or concerns.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
Home insurance is an insurance policy that you purchase to cover the cost of replacing your home and its contents in the case of a 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.
Your home will be covered for all risks with a comprehensive home insurance policy; natural disasters are not usually covered by insurance policies though.
Basic home insurance only covers the specific perils that are set out in the policy. 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; base how much replacement coverage you'll need on that figure. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
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 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.
A deductible is the amount which you are required to pay against the full cost of the damage or repairs. The deductible amount can be chosen at the time you purchase your insurance policy. Generally, the higher deductible you choose, the lower your monthly premiums will be. 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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