Although not mandatory, home insurance is still highly recommended. Whether you’re a homeowner or a tenant, it provides protection in case of damage to your home, furniture or personal belongings.
To help you evaluate your needs and choose the right coverage, consider speaking with an insurance broker. Their services are free, and they can provide expert advice. Don’t hesitate to ask plenty of questions to ensure you fully understand your home insurance and its coverage.
In the meantime, feel free to explore the questions in this article. While not exhaustive, it provides useful information to help you learn more about home insurance.
1. What does my home insurance policy cover?
The first step in understanding your home insurance is knowing exactly what is covered and what isn’t. While your policy typically covers your house and its contents, you should also consider other areas like the pool, the shed or even your wine collection.
In addition to protecting your belongings, home insurance usually includes liability coverage, which safeguards you if you’re held responsible for damage to someone else’s property.
If you’re unsure, consult your broker for a detailed explanation of your policy’s coverage. This way, you can make any necessary adjustments or add extra coverage if needed.
2. What types of damage are often excluded?
Every home insurance policy has certain exclusions, regardless of the level of coverage you select. It’s important to be aware of these exclusions in your contract to avoid any surprises when filing a claim for damage that may not be covered.
Some of the most common exclusions in a home insurance policy include:
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Floods
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Sewer backups
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Water infiltration through the roof
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Damage caused by the accumulation of snow or ice
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Earthquakes
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Landslides
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And more
3. What amount should I insure my belongings for?
While your broker can’t give you an exact amount, as it depends on the value of your belongings, they can suggest that you take inventory of all your possessions to help avoid underestimating your coverage needs.
To accurately assess the value of your belongings, make sure not to overlook anything. It can be helpful to use a dedicated inventory form to ensure you don’t miss any items. This document will allow you to list everything that you may need to replace in the event of a disaster.
Although compiling a detailed inventory might take some time, it’s a worthwhile effort to ensure you have the proper coverage.
4. How do I determine the rebuilding value of my property?
The rebuilding value of your property is the cost required to rebuild your home to its original condition, using similar quality materials, and in compliance with current building standards. This value is essential to ensure that you have enough coverage in the event of a loss.
Your insurance company has methods for estimating the rebuilding value based on your property’s characteristics, such as:
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The living area
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The type and quality of construction materials
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Interior and exterior finishes (floors, countertops, windows, etc.)
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Labour costs in your area
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Special features (garage, finished basement, pool, etc.)
For a more precise estimate, you can hire a licensed appraiser to assess the rebuilding value of your home and provide you with a detailed report.
5. What type of coverage should I consider for my home: basic or all risk?
When selecting home insurance, you’ll need to choose between two types of coverage: basic or all risk.
Basic coverage is more limited, protecting you only against specific risks outlined in your policy. It typically covers:
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Fire
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Theft
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Vandalism
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Explosion
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Damage from wind, lightning, and hail
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Damage caused by leaks or smoke
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Damage from object impact, collisions, or riots
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Some water damage
On the other hand, all-risk coverage is much broader. However, despite its name, it doesn’t cover all risks. Common exclusions include:
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Landslides
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Floods
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Earthquakes
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Sewer backups
Take the time to discuss your needs with your broker. They can help you choose the right type of coverage and clarify which risks are included in your home insurance policy.
6. What is a deductible?
A deductible is the amount you agree to pay out of pocket when filing a claim. For example, if your home insurance deductible is $500 and you file a claim for $3,000, you will pay the first $500, and your insurer will cover the remaining $2,500.
It’s important to remember that you will need to pay the deductible for each claim you make, regardless of the claim’s amount.
7. How can I reduce my home insurance premium?
Your home insurance premium is determined by the level of risk you represent. Several factors are taken into account when calculating this risk, such as:
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The neighbourhood and region where you live.
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Proximity to a fire station and fire hydrant.
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The condition of your electrical system and plumbing.
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The type of heating system.
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The type of building, including its construction date and rebuilding value.
If you find your premium too high, there are ways to reduce it by lowering the perceived risk. For example, you could install a security system connected to a monitoring centre or upgrade outdated systems (like electrical or heating systems).
Another option is to increase your deductible, which will lower your premium, but be sure you can afford to pay it if you need to file a claim. Additionally, bundling multiple insurance policies with the same insurer can often lead to discounts.
8. What information is needed to apply for insurance?
To apply for home insurance, you’ll need to provide various details about your property. To streamline the process, it’s helpful to have the following information ready:
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The municipal assessment of the home (to estimate its value).
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The dimensions of the property.
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The year the home was built.
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The type of exterior cladding.
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The year the water heater was installed.
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The type of heating system.
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Whether there is a security system.
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Whether there is a pool or spa.
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A history of any renovations made.
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A description of any prior claims, if applicable.
Your insurer may also request additional information to better assess your risk level and determine the appropriate coverage.
9. What documents should I provide to the insurer in the event of a claim?
To make the claim process smoother, it’s important to know which documents and evidence you’ll need to submit to your insurer. Here’s a list of information that may be required:
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Claims declaration form.
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Insurance policy and contract number.
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A detailed report of the incident, including the date, time, location, circumstances, and damages.
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Police report, if applicable.
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Proof of identity.
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Receipts and proof of purchase.
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Photos or videos of the damages.
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Repair estimates.
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And more.
The specific documents you’ll need will depend on the type of claim (theft, vandalism, fire, etc.). Your insurance broker can help guide you through the process and clarify exactly which documents are needed for your claim.
10. Why is it important to regularly update my insurance policy?
Your insurance policy is designed to meet your specific needs, so it’s crucial to update it whenever your circumstances change. This ensures your coverage remains accurate and adequate.
Whether it’s the addition of a pool, a new spouse, home renovations, or even starting a home business, notifying your insurer of any changes will help you avoid surprises when filing a claim and ensure your premium is fair and accurate.
Regular updates ensure your policy truly reflects your current situation, giving you peace of mind and proper protection.
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