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.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
A home insurance policy covers the cost of replacing your home and things in it, in the event of fire, damage or theft. 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.
Your home will be covered for all risks 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 option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. Home insurance that is broad blends comprehensive insurance with basic insurance policies.
How much coverage is necessary?
If your insurance covers enough for you to entirely rebuild and furnish your home, if it were completely destroyed, your home-insurance policy is adequate. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; the amount of replacement coverage you'll need is based on that figure. 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.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
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 will it cost?
The cost of a home insurance policy depends on how much coverage is required, your chosen deductible, the location and other considerations. In general, the more coverage you have, the more it will cost.
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. As a rule of thumb, your monthly premiums are lower with a higher deductible. Before you buy, it's important to shop around and ask your insurance representative if you have any questions or concerns.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
A home insurance policy covers the cost of replacing your home and things in it, in the event of fire, damage or theft. 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.
Your home will be covered for all risks 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 option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. Home insurance that is broad blends comprehensive insurance with basic insurance policies.
How much coverage is necessary?
If your insurance covers enough for you to entirely rebuild and furnish your home, if it were completely destroyed, your home-insurance policy is adequate. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; the amount of replacement coverage you'll need is based on that figure. 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.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
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 will it cost?
The cost of a home insurance policy depends on how much coverage is required, your chosen deductible, the location and other considerations. In general, the more coverage you have, the more it will cost.
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. As a rule of thumb, your monthly premiums are lower with a higher deductible. 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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