We often take the house we live in for granted and don’t think about securing it. But if you don’t secure and insure your house, you will have to face huge expenses in case there’s an accident or a natural calamity. Covering your house with the right insurance can help you manage your expenses caused due to damages. If you are new to the concept of home insurance, we will help you understand everything about house insurance in Canada.
What is House Insurance?
House insurance, also known as the homeowner’s insurance is a form of property insurance that covers losses and damages to your house and also to assets in the home. The house insurance covers different types of perils depending on which type of policy you buy. Most house insurance policies don’t cover damages such as loss to property due to war, and damages to property that is unoccupied for more than a certain specified period.
Types of House Insurance Policies
House Insurance Policies can be of two types:
The Building Policy covers the entire structure of the building. The policy will cover the damages caused to the home structure only. This type of cover is useful for the homeowners and tenants living in the insured structure.
Package Policy covers the contents within the home structure such as the household goods, furniture, appliances, gadgets, jewelry, etc. along with the structure of the building.
Types of House Insurance Products Offered
- Homeowners insurance
- Rental property insurance
- Condominium coverage
- Tenants packages
- Home businesses insurance
- Seasonal or secondary residence coverage
- Boatowner’s insurance
- Recreational property insurance
- Snowbird program
- Group insurance coverage
Benefits of House Insurance
Cover Expenses Caused Due to Damages
The first and most obvious benefit of taking house insurance is to cover yourself from any damage or loss that may take place in the future. House insurance provides liability coverage which covers you against personal injuries, property damage to guests which might have happened while residing in the insured house.
Coverage Against Natural and Man-made Calamities
A comprehensive house insurance policy covers your house against losses and damages caused due to natural calamities such as earthquakes, floods, lightning, storms, typhoons, etc. The policy also covers your house from man-made hazards such as anti-social activities, vandalism, thefts, strikes, etc.
Easier to Avail Loans
Some banks give preference to those individuals who plan to buy or rent an insured home. For certain moneylenders and loan-providers, house insurance is one of the major eligibility criteria for availing a home loan. So, if you are planning to apply for a loan, having house insurance can be helpful.
Protection Against Unavoidable Liabilities
A house insurance policy that mentions public liability coverage will protect you from any legal liability or third party liability which may arise, in case any third person suffers an injury while they are in or around your insured house.
Although not mandated by law, insuring your house can give you peace of mind. House insurance might be an additional expense, but it is an investment that will help you when a difficult situation arrives. Therefore, get in touch with our insurance advisor to cover your home today.