Fire, theft, water damage, extreme weather events… these are just some of the many reasons for taking out home insurance. Fortunately, the procedure is simple: you just have to contact your broker who’ll make sure that you obtain the best coverage that matches your situation and needs. In practice, insurance differs depending on whether you’re a homeowner, a tenant or a condo owner.
If you are the owner-occupant of your home, your home insurance covers the residences that you partly or totally occupy. This means that your house, your outbuildings (e.g. your storage shed) and your furniture are insured. Your home insurance also includes a civil liability guarantee that covers you against injury involuntarily caused to someone else, whether on your property or not. This type of insurance can also cover additional living expenses if your home becomes uninhabitable due to a major disaster, in which case you will be temporarily housed and fed at your insurer’s expense.
If you’re a tenant, your home insurance is similar to the landlord’s except for structures that are their responsibility (for example, the building roof). And if you’re a condo owner, your home insurance covers your unit, whereas the other units, the common areas and the building as a whole are covered by the condominium corporation’s insurance.
A basic home insurance policy generally covers damage caused by fire, weather (tornadoes, hail and so on), theft (or attempted theft) or water (such as bath overflow or dishwasher leaks). However, some damage is only covered if you take out “all risks” insurance (comprehensive) as opposed to insurance that restricts coverage to named perils. There are also certain limitations with respect to reimbursing the cost of certain types of property, such as animals, bikes, wines and spirits, jewelry, artworks and audio or visual media. Coverage of these items is usually limited to a maximum of between $1,000 and $2,000, although you can receive up to $5,000 for wines and spirits, and up to $10,000 for artworks. Of course, you’re free to request a higher amount of coverage. After all, as they say, where love is concerned, money is no object.
Although basic home insurance covers many types of damage, certain types of additional protection (called endorsements) are often necessary. The most common types of endorsements cover sewer backup, water seepage, swimming pools and hot tubs.
Unfortunately, certain risks are not automatically covered. Flooding, earthquakes and sewer backup are common examples of these.
If you live in a flood zone, you will need to add more protection to your policy since flood damage is not automatically covered in your basic policy. The same goes for damage caused by earthquakes; you need to add an endorsement (additional protection) because these risks are not covered by basic home insurance.
Don’t hesitate to ask your broker about the risks not covered so that you have a clearer idea.
To obtain the best home insurance possible – the kind that truly meets your needs, you should, of course, make an inventory of your possessions. So, be sure not to forget anything! Make an inventory of not only your possessions but also those of your spouse and all your dependents, because your home insurance policy covers them as well. This exercise naturally takes time, but it can pay dividends later when the time comes to make an insurance claim! Also, don’t forget to include any possessions that you have in storage, whether for moving or to go and live abroad or to make renovations. You’re covered for these possessions as well, depending on your insurance policy, the duration and location of storage, the types of possession and the covered perils.
Whether you’ve recently purchased the house of your dreams, finished renovations on your condo or acquired that awesome boat that will take you to the seven seas, purchasing a good insurance policy is absolutely essential! So why not contact one of our brokers right away? (link)