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House Insurance 101

Jun 26, 2017

House (small) iStock-547435366 

Insurance can be a tough thing to put money towards, it is intangible and there is no instant gratification when you purchase it. Wouldn’t it be great if you could just purchase insurance when you know a loss is going to occur! Unfortunately insurance doesn’t work that way. It spreads the premiums of many people to pay for losses of a few people.  Insurance does however provide piece of mind. Purchasing home insurance not only insures your home  but it also has many other added benefits. The following are standard coverages and additions that are commonly available on most homeowners’ insurance policies:

Personal Liability Coverage – We all hope we don’t get sued but sometimes accidents happen. Personal Liability is important if you are legally obligated to pay compensatory damages because of unintentional bodily injury or property damage.

Dwelling Building – The dwelling building refers to your house structure including permanently attached fixtures and fittings. It is important to make sure your dwelling value is sufficient to rebuild your home with like kind and quality material. Contact your broker for a valuation to make sure your coverage limit is sufficient.

Detached Structures / Outbuildings – If you have a detached garage, a shed or another type of detached structure  on your property you will want to make sure your agent knows and that you have enough coverage should a claim occur.

Personal Property (Contents Insurance) – Personal property refers to the contents of your home. People often underestimate the limit of coverage they need for personal property. The limit refers to the total of all your contents. If you have a replacement cost policy, this limit is the total cost to replace your items with new items of like kind and quality. 

Additional Living Expenses (ALE) If you are unable to stay in your home due to an insured loss, you will likely need a place to live. Additional Living Expenses can help cover your increased living expenses at the temporary location while your home is under repair.

Single Limit of Insurance – The single total limit of your policy is a combination of the total policy limits for Detached Structures, Personal Property, Additional Living Expenses and your Dwelling.

Earthquake Insurance – Earthquake Insurance is an optional coverage that can be added to your insurance policy. It can protect your home and/or belongings should an earthquake occur.  Click here to find out more information on earthquake insurance and also how to prepare for an earthquake.  

Rental Income - Do you have a rental suite in your home? If you rent out a portion of your home it is important to let your insurance broker know and to add rental income. Rental Income protects that revenue if you are unable to rent out the unit due to an insured loss.

It is important to do regular updates with your insurance broker to make sure you have the correct coverage in place. Click here to learn more about the key features and benefits our home insurance policy. It is also a great idea to confirm you have all discounts available to you!

**Disclaimer: This is a general guide on Homeowners Insurance. Please see your insurance policy and policy wordings for a comprehensive description of what your policy includes**

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  • Home Insurance