Homeowners Insurance – Top 5 Questions Asked
At Merit Insurance, we understand that homeownership is not only one of the largest financial investments Canadians can make, but a home is also a place that provides comfort and a place to build memories with your family. Whether you are a first-time homebuyer or a seasoned veteran in the housing department, home insurance can still cause a lot of confusion.
To help protect your family home, our Merit Insurance brokers compiled the top 5 most asked questions by their clients regarding home insurance:
1. Do I NEED homeowners’ insurance?
Yes! No matter how well a home is built, it is still vulnerable to fire, vandalism, and other types of damage and needs proper protection. Home insurance covers expenses that occur when unexpected or accidental damage impacts your home or belongings.
2. Does homeowners insurance only protect my house?
This is the MOST asked question to our brokers. Home insurance coverage promises to rebuild your home if it burns down, crumbles in a windstorm, or a pipe bursts without warning. Think of home insurance as coverage that impacts the structure of your home. This can also extend to other areas of your property such as protection for your driveways, fences, or sheds. But home insurance also includes ‘liability’ insurance, which protects the homeowner in the event of an accident. For example, your adventurous friend decides to swan dive into your pool resulting in a severe injury. If included in your policy, pool liability coverage can protect the homeowner in this case.
Clients often get confused about the distinction between the protection of personal property in the home vs. the home itself. Standard homeowners insurance policies do cover a lot of your personal property, but only up to a specified limit. To cover items such as jewelry, high-value collector pieces, or other luxury items, an additional insurance policy will need to be added to your home coverage.
3. Is homeowners insurance mandatory by law?
Unlike auto insurance, home insurance is not a requirement for buying a home in the eyes of the law. However, more and more banks and mortgage brokers are insisting to show proof of home insurance or will put a condition on the loan prior to approving a mortgage. This tactic is to encourage homeowners to protect what is likely their largest source of equity.
4. How much homeowners insurance do I need?
This question can only be properly answered by a broker who is familiar with all the details of your home and where you live.
On the most basic level, homeowners should consider the following insurance:
- Extended dwelling coverage should your home need to be re-built
- Damage to individual property
- Liability insurance to cover injuries and damages that happen on your property
- Reimbursement of your living expenses if your house is deemed unfit for living
5. Can I lower the cost of homeowners’ insurance?
Yes! Here are some tips to lower your monthly premiums:
Bundle & save: Merit Insurance offers discounts for bundled insurance policies. Talk to your Merit broker to discuss your options to save!
Make your home more disaster-resistant: Is your sump pump new? Does your roof need to be replaced? By keeping your home up to date, it minimizes the risk of damage should there be an unforeseen threat to your home.
Install a security system: Having an alarm reduces the risk of theft or vandalism damage to your home. Make sure to send a copy of your installation receipt to your Merit broker to add to your insurance profile for a discount.
They say home is where the heart is. Talk to a Merit Insurance broker today and protect what matters most!
Call Merit Insurance Brokers today and let’s take care of business!
