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How Much Home Insurance You Need

how much home insurance you need


Homeowners in Ontario often have a lot of questions about home insurance, including how much and what types they really need. The industry pros at Orr & Associates can help you to choose the right coverage, not just for your home and belongings but also for your peace of mind.

Choosing the right coverage starts with understanding the difference between dwelling and contents coverage for your home insurance in Collingwood.

Choosing the Right Coverage

Dwelling coverage covers the structure of the home, the part of the home you live or dwell in. With this coverage, the insurance company will repair or replace the structure following a covered event, such as hailstorms and lightning strikes.

Here’s something important to remember. Your insurer will cover the cost of repairing and rebuilding your home only up to the coverage limit minus your deductible. If you don’t carry enough dwelling coverage, you could end up paying a lot of money out of pocket. Talk to your home insurance broker to calculate how much money you need to repair or replace your home.

You probably have furniture, appliances, and electronics that would cost a lot of money to replace all at once. Therefore, it’s important to include content coverage in your Collingwood home insurance. Contents coverage will reimburse you for covered losses that include:

  • Decorations
  • Furniture
  • Electronics
  • Toys
  • Clothes
  • Appliances
  • Other belongings

Have you created a home inventory? Keeping an online list of each item, how much you paid for it, and when you bought it will greatly simplify any insurance claims you may file in the future.

Factors that will impact home insurance costs

If your home is damaged or destroyed, your home insurance will cover the costs up to your coverage limit. The higher your coverage limit, the higher your premium. It’s important to balance your coverage needs and costs. Here are some of the factors that may influence this decision:

  • The price of wood, brick, stone, and other materials needed to repair or rebuild your home
  • Risks such as high winds and frequent storms in the area where you live
  • The value of jewelry, clothes, appliances, and electronics (you’ll want to include separate coverage for some valuables, such as heirlooms and antiques)
  • Your home’s age and condition
  • Where you live
  • Home security and safety features (which will lower your premium in many cases)

You want to ensure you have at least the bare minimum to replace your dwelling. The factors influencing this include the build year and the materials needed. Talk to one of our home insurance brokers for advice on how to calculate your minimum coverage.

Get a free home insurance quote today!

Obtaining Better Liability Insurance

Homeowners may overlook liability insurance when considering what they need for home insurance coverage. However, liability insurance covers settlements and legal costs if someone is injured or experiences property damage due to actions by your family member or pet. For example, if your dog bites the neighbour while you were out for a walk, liability coverage might help pay for related damages.

Most home insurance coverage handles costs related to legal liability. However, lawsuits can quickly turn into six-figure settlements. Keeping this in mind, you may want to boost your general liability insurance to protect your family from such financial risks. Purchasing liability umbrella insurance allows you to obtain up to $1,000,000 worth of additional protection or more.

You May Need Additional Protection

Note that some hazards, such as mold, nuclear accidents, floods, and earthquakes may require additional coverage. Some homeowners choose to upgrade the dwelling and contents coverage. For instance, after widespread disasters, labour and materials cost may skyrocket. You may decide to increase your total home insurance coverage to account for that. If this is a priority, Orr & Associates can help you find an insurer that provides extended replacement cost for 10% to 50% over the normal coverage.

There is also a difference between the “actual cash value” and “replacement cost” to buy new things. Carefully consider the type of coverage to meet your needs.

Most policies cover the cost of your belongings up to a percentage of your dwelling coverage. However, it varies from company to company, and you may be able to purchase additional coverage. If you’ve just replaced all your furniture, installed expensive electronics, or have valuable belongings in your home, this might be a great option for you.

Ask your Collingwood home insurance broker about adding more theft coverage and additional perils to your policy so that you know all your options.

Home insurance broker near me

Orr & Associates works with insurance companies all over Ontario. Do you need help refining your home insurance policy in Collingwood, ON? Call 1 (866) 521 5926 or fill out the online form today for assistance with all your home insurance needs.