Your home is your castle and while it may not be practical to build a moat, you still need adequate protection. Since you first moved into your home, you have been acquiring valuables. Your house in Guelph is anything but empty.
Unfortunately, accidents, inclement weather and crime are all simply a part of life. At some point in time, everyone will experience some kind of residential loss. It is impossible to know when disaster will strike. However, it is possible to make sure that when it does, your family will be protected by investing in the right home insurance policy from a reliable brokerage.
Home insurance is designed to offer coverage for a wide range of risks that a homeowner may face. Without the right coverage, you will encounter the financial challenge of trying to cover a loss out of pocket.
Property damage insurance is the coverage that is required to protect your residential dwelling and any other detached structures that may be present on your property. You will be able to collect compensation for your loss up to the limits outlined in your homeowners insurance policy if your home is damaged by a covered disaster.
Keep in mind that standard insured circumstances include things like fire, tornado, theft and vandalism. However, other disasters such as floods and earthquakes may be excluded. Be sure to discuss the exclusions in your home insurance policy with your broker to find out exactly what is covered by your policy.
Personal Property Loss
Personal property loss coverage includes the theft or damage of your personal property up to the limits that are set in your homeowners insurance policy. Typically, this coverage will exclude loss due to earthquake, flood or negligence.
If your personal property is especially valuable, such as jewellery, furs, coins, stamps, fine art and wine collections, you should talk to your broker about including special endorsements on your home insurance policy. Standard limits will not likely be adequate coverage for these items.
Personal Liability Coverage
If you, a member of your family or a family pet is responsible for some kind of property damage, injury or accident, you will be protected by your home insurance policy. It does not matter if the incident requires property repairs or medical treatment, you will be covered up to the limits of your policy.
However, there are some situations where your homeowners insurance policy will not provide coverage. For example, if the injury or damage is caused by an aggressive act toward your neighbour, liability insurance will not pay. Your broker will be able to help you completely understand all of the details of the liability insurance included in your policy and make certain your finances are safe even in the event of legal action brought on by a third party.
Added Living Costs and Loss of Use
Should you no longer be able to live in your home during repairs or reconstruction made necessary by a covered loss, your homeowners insurance policy will provide you with the funds that you need to pay for alternative living. In some cases, this coverage is included in your policy, but may also be offered as optional coverage. Talk with your broker to make certain you have adequate coverage and your daily and overall limits are sufficient.
Guaranteed Replacement Cost
Even if the damage that is done to your home is more than your policy limits, you are entitled to receive the funds necessary to repair or rebuild your home if your policy includes guaranteed replacement cost. This means that you also will not have to worry about any deductions due to value depreciation that may have occurred over time.
However, it is important to note that the amount paid for repairs and reconstruction under guaranteed replacement cost usually does not exceed a certain percentage of the amount of coverage stated in your policy. Also if the appreciation of your home exceeds your coverage level, guaranteed replacement coverage will not pay that amount.
Replacement cost does not only apply to the dwelling. You must also think about your home’s contents. Talk to your broker about securing replacement costs for your valuable contents as well.
All Risk Coverage
All risk coverage is insurance that will pay for a claim due to any peril that is not excluded specifically in your policy contract. This is the exact opposite of named peril coverage which only pays for events specifically noted in the policy.
This is an insurance plan that will provide coverage for a wider range of claim
situations. The benefit of this type of coverage is the peace of mind that you will be protected even against the most unusual events. However, there still may be exclusions to this coverage as with other types of home insurance, including flooding, earthquakes, mold and other natural disasters.
Cash Out Option in the Event of Total Loss
With a standard home insurance policy, you will be compensated for the amount required to rebuild your home in the same location following a total loss. If you choose not to rebuild your home, you will be awarded the actual cash value of the home minus depreciation.
However, with the cash out option, you will be paid for the full replacement cost of your home and your personal belongings without being forced to rebuild. Therefore, you will have the option to sell your property and rebuild a new home in a different location without any financial penalties.
Older, Rural and Country Homes
In cases where your home is older or located in a more secluded area, you may require specialty insurance. While some insurance brokerages hesitate to cover such properties, we have created policies especially for these homes and are prepared to provide you with the protection you need.