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When it comes to protecting your most valuable asset, home insurance in Canada is a must-have. But what exactly does it cover? There are three main types of home insurance coverage in Canada. These include:
● Comprehensive home insurance: This protects everything inside and outside your home from any unexpected damage.
● Named perils: This protects and accounts for specific “perils”, such as fire, natural disasters, or flooding. You decide which named perils are listed in your insurance to ensure they get coverage.
● Broad home insurance: A combination of comprehensive and named perils. It covers the structure of your home, and any named personal belongings inside it.
Most types of home insurance in Canada will fall under one of these broad types. But what sort of damage protection can you expect from each type? In this article, we explore basic home insurance coverage, common exclusions, and how to ultimately get the best coverage for your budget.
To learn more about home insurance in Canada, read on!
What Do Most Basic Home Insurance Policies Cover?
Home insurance in Canada typically provides basic coverage for the structure of your home, personal belongings, liability, and additional living expenses in case you’re unable to stay in your home due to covered damages. Each basic type of coverage is described below:
With comprehensive insurance, all of these expenses will be covered by your insurance. With named perils or broad-form insurance, the coverage is more selective and you need to check your policy before submitting a claim.
Additional Coverage Options for Homeowners
Some coverage options need to be added to your policy as an extra. It’s important to note that even if coverage is comprehensive, it will not include the following:
In short, unusual types of damage might need additional coverage in your policy, even if you have comprehensive insurance.
What Is Not Covered in Most Home Insurance Policies?
While the above coverage is something you can add to your current home insurance as an extra, some types of damage are never covered by home insurance. These are outlined below:
Remember to check whether your insurance covers something before submitting a claim.
Factors That Affect Home Insurance Premiums in Canada
Several factors can influence the cost of home insurance premiums in Canada. To get a better deal on your home insurance, it’s helpful to first understand why coverage is so expensive in the first place:
Home Insurance Discounts and Ways to Save Money
Now that you understand some of the factors affecting home insurance costs, let’s dive into how you can decrease these costs while still maintaining proper coverage:
Home insurance can be a worthwhile investment. You never know when disaster may strike, and having funds to pay for damage to your home or property can save you from a financial disaster one day.
When choosing between comprehensive and named peril insurance types, remember to compare prices and premiums where possible. Also, remember to keep in mind that some things are never covered by home insurance, including wear and tear, and negligence.
Home insurance is not just an expense; it’s an investment in protecting your most valuable asset. So, take the time to review your policy, assess your needs, and choose a home insurance provider that will provide you with the peace of mind you deserve.