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How
does home insurance protect you?
Your home insurance usually safeguards you in two ways: financial
loss and personal liability.
Financial
Loss: Your home insurance will refund you if your home or personal
effects are stolen or if any other an unforeseen situation that
is specified under your property insurance policy occurs.
If
an unforeseen situation, like a fire, does arise, your home and
garage will likely need to be restored. You will be reimbursed for
the value of items, such as furniture, cameras and computers—or
the items themselves will be replaced.
If
you cannot live in your home while it is being restored after a
loss, your house insurance will pay for some of your extra living
expenses, such as accommodations, restaurant meals and storage.
Personal
Liability: If someone is injured while visiting your home, they
could sue you for damages. If they win and a court awards them a
significant settlement, you could be financially ruined. Your wages
could be garnished and you could have a hard time getting back on
solid ground. Property insurance safeguards against this kind of
liability.
Your
home insurance will also protect you against liability for accidental
damage to someone else’s property. For example, if you live
in an apartment building and your bathtub overflows, resulting in
damage to your neighbour’s apartment, your home insurance will
pay for repairs or replacement.
If
you rent your home or own a condo unit, you might feel that investing
in a home insurance quote is pointless. If you are just starting
out and renting your first place, you might believe that you have
nothing of real value that needs replacing should something like
a fire occur. If you own a condo unit, you might believe that your
condo corporation’s home insurance policy has you covered.
Here is why whether you rent or own a condo, purchasing a home insurance
policy is a good move.
Tenant
Insurance
If you rent your home, you may think you don’t need to bother
with property insurance. Unless your landlord is directly responsible
for the damage to your belongings or unit improvements such as a
new carpet or built-in shelving in the closets that you paid for,
his insurance likely won't reimburse you. It also won't protect
you if you are sued for negligence.
Condo
Insurance
If your condo corporation has insurance, you may wonder why you
need to purchase your own coverage. Here’s why:
Your
condo’s corporation policy only covers items that are part
of the building. You need your own home insurance to protect any
upgrades you have made to the unit, such as carpets or an upgraded
bathroom or kitchen.
You need to insure your personal effects like furniture, computers,
and other electronics. You need to protect yourself against personal
liability for injuries to visitors to your home, or for damage you
accidentally cause to your neighbour’s property.
Whether
you make your home in a house, a condo, or a rental unit, the best
way to protect it, your effects and your liability is to purchase
home insurance.
One
thing to keep in mind when shopping around for a home insurance
quote—there is no such thing as a “standard” home
insurance policy. home insurance coverage varies significantly from
one insurer to another. Companies that sell home insurance compete
for business on coverage, service and price.
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