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's what you need to know to help you find the right home insurance for you and your family.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
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; except the ones that insurance policies do not usually cover, like natural disasters.
The specific perils that are set out in the policy are all that basic home insurance covers. 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.
What amount of coverage is sufficient?
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. Remember to note all the expensive/unique details that would drive up 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.
Last, liability coverage protects you in case something takes place on your property that would make you financially responsible, such as if someone's belongings were damaged or if they were injured on your property.
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. Generally speaking, more coverage means more cost.
A deductible is how much you must pay against the entire cost of any repairs or damage claimed. You can choose to raise or lower your deductible when you purchase your insurance policy. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
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; except the ones that insurance policies do not usually cover, like natural disasters.
The specific perils that are set out in the policy are all that basic home insurance covers. 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.
What amount of coverage is sufficient?
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. Remember to note all the expensive/unique details that would drive up 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.
Last, liability coverage protects you in case something takes place on your property that would make you financially responsible, such as if someone's belongings were damaged or if they were injured on your property.
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. Generally speaking, more coverage means more cost.
A deductible is how much you must pay against the entire cost of any repairs or damage claimed. You can choose to raise or lower your deductible when you purchase your insurance policy. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
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