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.
First time home buyers, faced with the prospect of choosing a home insurance policy, are probably asking how much coverage they need and what it costs.
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.
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.
Basic home insurance only covers the specific perils that are set out in the policy. This is a cheaper option since it doesn't cover as many possible hazards as a comprehensive policy. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
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.
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 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. More coverage means more cost, as a general rule.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. When you purchase your insurance policy, you can choose to raise or lower your deductible. In general, with a higher deductible, you have lower monthly premiums. It's important to shop around and ask your insurance representative if you have any questions or concerns, before you buy.
First time home buyers, faced with the prospect of choosing a home insurance policy, are probably asking how much coverage they need and what it costs.
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.
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.
Basic home insurance only covers the specific perils that are set out in the policy. This is a cheaper option since it doesn't cover as many possible hazards as a comprehensive policy. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
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.
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 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. More coverage means more cost, as a general rule.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. When you purchase your insurance policy, you can choose to raise or lower your deductible. In general, with a higher deductible, you have lower monthly premiums. It's important to shop around and ask your insurance representative if you have any questions or concerns, before you buy.
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