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.
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.
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. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
Your home will be covered for all risks 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 is a cheaper option since it doesn't cover as many possible hazards as a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage is necessary?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Unique and/or expensive details add to the replacement cost; be sure to point these out. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
Inventory the contents of your home and all your personal possessions - if you have to file a claim for damages or theft, this helps ensure that you are completely covered and reimbursed.
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?
Depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors, the cost of your home insurance policy will vary. More coverage means more cost, as a general rule.
A deductible is how much you must pay against the entire cost of any repairs or damage claimed. When you purchase your insurance policy, you can choose to raise or lower your deductible. 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.
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.
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. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
Your home will be covered for all risks 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 is a cheaper option since it doesn't cover as many possible hazards as a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage is necessary?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Unique and/or expensive details add to the replacement cost; be sure to point these out. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
Inventory the contents of your home and all your personal possessions - if you have to file a claim for damages or theft, this helps ensure that you are completely covered and reimbursed.
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?
Depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors, the cost of your home insurance policy will vary. More coverage means more cost, as a general rule.
A deductible is how much you must pay against the entire cost of any repairs or damage claimed. When you purchase your insurance policy, you can choose to raise or lower your deductible. 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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