There are many terms associated with home insurance in BC; Personal Lines Coverage, House Insurance Coverage, Property and Casualty Insurance, Homeowners Insurance and the list goes on. Most of these terms can be used interchangeably. The important consideration when choosing the best home insurance is: what will be insured (the object of insurance), the limits of coverage and the policy wordings. It doesn’t matter what the policy is called, it matters what is covered!
How House Insurance works
Are you wondering how house insurance in BC works? House insurance, unlike condo insurance and tenant insurance, includes coverage for the building. Most of the cost of house insurance is based on the insured value of the house, whether that is the Actual Cash Value or the Replacement Cost Value. Replacement Cost Coverage is typically the better way to go as it provides coverage for the cost of repairs or replacement of similar kind and quality, without deduction for depreciation. The best home insurance consideration you can make is ensuring that your dwelling value on the policy is high enough to actually rebuild your house.
Since house insurance has coverage for the building, there are some additional coverages that are also important to consider such as coverage for bylaws and coverage for debris removal. The cost of additional work to meet bylaw requirements and the cost of debris removal can add up quickly in the event of a claim.
For more information on the different coverages included in House Insurance, check out our blog post House insurance 101.
Why is Condo Insurance so much cheaper than house insurance?
One question that insurance brokers often get asked is, “why is condo insurance cheaper than house insurance?” Condo insurance that you purchase as an owner does not cover the entire building, but rather only the inside of your unit and your belongings. Usually these clients don’t realize that a portion of their strata fees also go towards a separate Commercial Strata Insurance policy that insures the building. If you have a question regarding the cost of your building insurance for your condo, we recommend speaking to your strata council.
Is tenant insurance cheaper than house insurance?
In many cases, clients will also find that tenant insurance can be cheaper than house insurance. As a tenant, your insurance is providing coverage for your belongings and liability. The building for a tenant insurance policy would need to insured by the owner of the property and/or the strata. Just like with a condo policy, separate coverage is required for the building.
To get a quote on house insurance, request a quote online or call 1-800-899-3093.