Home Sweet Home
A house is more than the place you live; it is your home. It represents security and is probably the biggest investment you'll ever make; it is independence for first-time homebuyers, and so much more. Something as valuable as your home needs a lot of care.
Insurance is vital to protecting yourself from unexpected losses. Your homeowner's insurance policy covers your house and personal property, and protects you from liability claims. It is something you cannot do without, and should purchase as soon as you become the owner of a house, even if it is still under construction. If you have a mortgage then insurance will be required by your lender.
All homeowner's policies provide coverage for:
- The house and the structures attached to it.
- Personal property or the contents of the insured dwelling, such as the furniture, the appliances, your clothes, etc., as well as the personal effects of your family members.
- Liability, when, due to negligence, you may be held responsible for an act causing injuries or property damage to others.
However, policies differ with respect to coverage and claims settlement. For example, most policies will cover the dwelling(s) on a Replacement or Rebuilding Cost basis. This is why the limit of insurance provided for your house can be higher than the purchase price of the house.
In order to assist your broker in arriving at an accurate amount for insurance purposes, you should provide as much information as possible about your home including square footage, building materials, etc.
It is also important to periodically review your policy with your broker to make sure that the limits of insurance accurately reflect any home improvements.
So, while home insurance policies are necessary for everyone, it is important that you purchase one that will fit your needs.
As a tenant or a condominium unit owner, you may not think insurance is a priority. In fact, you may think that because the building is covered by someone else, your personal effects aren't worth insuring. What you may not know is that a Tenant's or Condo insurance policy also includes personal liability.
The Liability section of the policy will protect you in case you are found legally responsible of having unintentionally caused bodily injury or property damage to someone else. This can happen just the same when you are on vacation, at a public meeting, or attending your child's soccer game. In fact, your coverage will follow you anywhere in the world. The policy also covers any court costs, lawyers' fees and other expenses associated with your defense.