Obtaining reliable home insurance should be a high priority. This is because it protects your investment and ensures that you are adequately covered in case of any unfortunate disaster. As a leading home insurance brokerage, we often get clients who feel that choosing the right home insurance policy is challenging. We have put together a complete guide to the essentials of getting proper coverage for your home in Canada. Read on to make an informed choice.
What is Home Insurance?
Property or home insurance is a policy that helps to cover the expenses if your home and belongings inside get damaged due to any unforeseen events. Typically, it offers coverage for damage caused by fire, theft, and if someone gets injured on your property.
Do You Legally Need to Have Home Insurance in Canada?
Legally, property owners in Canada are not obligated to purchase a home insurance policy. However, it helps to have one to protect your assets. Also, you will need to obtain home insurance if you want to get a mortgage.
Why Homeowners Need Home Insurance
- Financial Security
Property is one of the most valuable assets for an individual. Having an insurance policy will help protect it from lightning, fire, smoke, theft, vandalism, and other potential damages. It may also cover the living expenses if your home gets damaged and becomes uninhabitable.
- Get a Mortgage
It helps to know that your lender or bank will require you to have a home insurance policy if you’re applying for a mortgage. In the absence of adequate coverage, they would not lend you the money. You will have to produce valid proof that your house is insured.
- Peace of Mind
Your financial security could collapse if something were to happen to your house. To have peace of mind and to protect your investment, it helps to have basic coverage.
Home Insurance Coverage
It helps to know that every home insurance policy is different and offers a variety of coverage options. Typically, a standard home insurance policy may cover the following:
- Damage to your home
- Theft or loss of your belongings or personal possessions
- Injury or damage to others on your property
- Accidental damage that you may cause to somebody else’s property
It helps to work with a reputable home insurance broker to ensure that you choose the right policy.
Types of Home Insurance Policies in Canada
It covers all risks to your home, except the ones listed as exclusions in your policy.
Commonly known as basic coverage, it covers the risks to your home and belongings that are explicitly mentioned.
If a standard coverage doesn’t meet your needs and a comprehensive home insurance policy costs more than your budget, you can opt for the broad insurance policy.
- Personal Liability
As a homeowner, you could be held liable for property damage or injury caused to others unintentionally. This is why it helps to have coverage for such events.
Get Home Insurance Quotes with Us
Orr & Associates is a leading insurance brokerage offering accurate insurance quotes. If you are looking to get accurate coverage for your home, we can help you.