Home ownership is one of the largest financial investment decisions Canadians make. Your home may be your biggest source of equity. No matter how well built, your home is vulnerable to fire, vandalism and other types of damage and destruction.
What Is Covered?
Coverage can vary from one insurer to the next, so it’s important to select a policy that suits your specific needs. Home insurance covers the dwelling, contents and personal liability of you (the policyholder), your spouse or partner, and your children. The policy also covers:
- Dependants under the age of 18
- Dependants who are students enrolled and actually attending a school, college or university and living in the household or temporarily living away from the insured principal residence
If you share your home with a friend or relative, or rent out part of your residence, you must notify your insurance representative.
Home insurance also includes coverage for additional living expenses in the event that you are temporarily unable to live in your home due to an insured loss in certain circumstances.
4 Tips for Insuring Your Home and Contents
If you can’t afford to replace absolutely everything you own after an unforeseen event, you need home insurance. Consider these tips.
- Insure for rebuilding costs.
- With severe weather on the rise, confirm accurate replacement value.
- Review your home inventory each year when you renew your policy.
- For high-value jewellery or fine art, consider a separate endorsement.
Even a partial loss – such as from a break-in, theft of multiple possessions and related damage – can potentially cause financial hardship. Home insurance protects you from having to pay all at once to replace what was lost at what is often an emotionally difficult time.