Home insurance coverage and premiums vary from one company to another and from one policy to another, so it pays to ask questions before you buy. This information is intended to provide answers to the basic insurance questions, your insurance representative is the best resource for any specific questions you may have.
1. What does my home insurance policy cover?
Some policies cover only you against named perils – in other words, if the cause of the damage isn’t listed in your policy, it isn’t covered. This is generally referred to as a standard or basic policy.
- Other policies cover you against all risks on the building and named perils on the contents of your home. All risks policies provide insurance for losses due to a wide range of causes. But instead of listing what is covered, an all risks policy excludes what is not covered. This is generally referred to as a broad form policy.
- Still, other policies cover all risks on both the building and its contents, but are subject to some exclusions. These are generally referred to as comprehensive or special policies.
Unlike auto insurance, insurers have their own policy wordings, so be sure you understand the type of policy and coverage you have purchased.
2. Is there a specific kind of insurance for my type of home?
Yes. Speak with your insurance representative about tailored package policies designed to insure your home, condo or apartment.
- If you own a house, homeowner’s insurance is available to protect your property and personal liability as policyholder, and that of your spouse/ partner and your dependent children.
- If you own a condo, there are specific types of coverage you can purchase in addition to liability and contents coverage.
- If you rent, tenant’s insurance is available to help you replace your belongings and rebuild your life after an insured loss. Tenant’s insurance policies generally include personal liability and contents coverage on a named perils or all risks basis. Liability coverage offers you protection for any damage you may accidentally cause to your apartment. For more information, review Insurance Bureau of Canada’s What is Tenant’s Insurance brochure.
- If you own a mobile home, it can be insured under a basic named perils policy. Mobile home insurance may also include liability coverage.
- If you own a vacation home, it can be insured separately or under the same policy as your home. Coverage for vacation homes is usually more limited.
3. Are there certain risks or potential perils that aren’t covered?
Because premiums for an all-inclusive policy would be impractically high, no policy covers everything that can go wrong. Insurance is intended to cover losses caused by unforeseeable events. Losses that are predictable and/or inevitable are typically not covered by insurance, but there is optional coverage you may want to consider.
Thank you to the Insurance Bureau of Canada for this information