The proverb goes, "A man's home is his castle." Regardless of its size, a house provides a home for a family and serves as a repository for memories and dreams. A home's emotional value is priceless, but a piece of real estate's market value is much easier to assess !
In February 2017, the average house price in Canada was estimated to be over half a million dollars. In Quebec, we spend an average of $280,333 to buy a home. There is no more valuable material good that a person can possess, and all of our other belongings are usually found within its four walls. Furthermore, this tangible item is frequently linked to a large mortgage. That is to say, if disaster strikes, the debt will not be erased along with the house !
Why Should You Get Home Insurance ?
Theft, water damage, fire, and vandalism are all possibilities. Many terrible things can occur, and they do not only affect other people. Consult your neighbours !
The advantages of home insurance include protection for your home in the event of damage, as well as liability insurance. However, no matter how careful you are, you can end up being held responsible for a variety of incidents of varying severity !
Home insurance won't protect you from all of these dangers, but it will shield you from the potentially disastrous financial consequences. So why should you have to worry about your finances on top of dealing with a robbery !
How to Pick a Home Insurance Policy ?
According to the AMF (Autorité des marchés financiers), you should determine how much protection you require before deciding on the appropriate amount of home insurance coverage. First, make a list of everything you own and the value of each item. Take your time with the exercise; we all tend to undervalue our possessions. Then you'll need to know the property's reconstruction value, which may differ from its market value. In that case, regardless of the state of the real estate market, you'll know you have enough coverage to rebuild your home. If you need assistance, don't hesitate to contact an insurance professional !
After you've determined your requirements, go over each clause in the proposed policy with them in mind. For example, given your collection of high-end bikes, do you need to re-evaluate your insurance's limitations? Is your hot water tank truly less than ten years old, as your insurer requires to cover the risk of basement water damage? Did you forget to account for your dog's breed or the number of trips you make each year when calculating your civil liability coverage needs? If you want to be genuinely protected from unpleasant surprises, you must examine everything. Your insurance needs will differ if you own a house, a co-ownership, or rent or own income property !
What does and doesn't home insurance cover ?
Wind, hail, lightning, fire, explosions, smoke, a leak or overflow of a sanitation facility, theft, vandalism, falling objects or vehicle impact, and rioting are all risks generally covered by home insurance policies, according to the Insurance Bureau of Canada. But watch out! The risks covered vary from one contract to the next, even from one company to the next. Pollution, war, nuclear risks, flooding caused by floodwater, and landslides are generally not covered but maybe if an option is selected. In addition, any damage caused by the insured's negligence, such as damage caused by unrepaired wear and tear on the home's exterior, mould, or vermin, is not covered. Standard coverage does not usually cover damage caused by roof water infiltration or sewage backup. This coverage can, however, be added for an additional fee !
Benefits of Home Insurance
Loss of Use Insurance
Liability ProtectionOwning a home is a beautiful experience, but if you're like most people, you probably haven't given homeowners insurance much thought. In simple terms, home insurance is an agreement between you, the owner of a residential property, and a home insurance provider, in which the latter protects your home from any loss or damage that may occur due to an unforeseen circumstance. These home insurance companies not only cover the risk of damage to your home but also assist you with the legal procedures and responsibilities that come with owning a home !
Furthermore, home insurance protects against losses and damages caused by natural disasters or artificial mishaps. However, with the plethora of home insurance providers offering different plans and covers, you have the flexibility of choosing a cover that suits your requirements the best. However, once you consider the numerous practical benefits that a homeowners policy can provide, you're likely to think about it more frequently and even become excited about it !
Here are the top five advantages of having a good homeowners insurance policy:
Protection Of Your Main Dwelling
The primary goal of home insurance is to protect your primary residence or the part of your home where the damage is caused by a hurricane or tornado. If possible, you should insure your home for 100 percent of its value, but 80 percent to 90 percent is a good starting point. Most policies will cover minor damage, significant damage, and total replacement costs.
Ensure the Safety of Your Detached Structures
The coverage for your detached structures, which may include a garage, sheds, fences, the dog house, and more, is the second most important aspect of homeowners insurance. Detached structures are typically covered up to 10% (or some other percentage) of the coverage limit for your primary residence. However, if you want additional coverage for detached structures on your property, you can customize your policy.
Contents Coverage for Your Home
When you get home insurance, you should make a list of all the appliances, furniture, electronics, and other personal property covered under the policy. Depending on your policy's specific stipulations, you may be reimbursed in part or in full if a covered event (such as a storm) damages or destroys some of this property. This is a significant benefit of this type of insurance that many homeowners overlook !
One of the reasons you can't afford to be without homeowner's insurance is this. If someone is injured on your property, medical bills could cost tens of thousands of dollars or more, and you could be held liable. Your policy does not cover injuries or property damage to you or your family members. It's intended to shield you from potentially costly lawsuits, such as those resulting from a visitor's dog bite !
Loss of Use Insurance
You will be responsible for hotel, food, and travel expenses if you are forced to leave your home while it is being repaired or rebuilt as a result of a covered event. However, your home insurance's loss of use component will cover these up to a point. Another advantage of having your home insured is that it covers much more than just shingle damage. So that's all there is to it when it comes to home insurance and its benefits. Contact Guglu Homes today to learn more about what is covered and how homeowners insurance works in Canada. Then, we can assist you in making an informed decision by tailoring a policy to your specific needs and budget !
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