Mortgage companies in Canada require you to buy home insurance to cover the balance of your mortgage should your home need to be replaced or repaired due to fire or other damage. Here are some tips to help you find home insurance that is right for your family and you.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
Home insurance is an insurance policy that you purchase to cover the cost of replacing your home and its contents in the case of a fire, damage or theft. It protects you from liability too, in the event that someone's belongings are damaged while they're in your home, or if someone hurts themselves while on your property.
Your home will be covered for all risks with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Specific perils are set out in the policy; basic home insurance covers only these. It doesn't cover as many possible hazards as a comprehensive policy, so it's a cheaper option. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; base how much replacement coverage you'll need on that figure. Remember to note all the expensive/unique details that would drive up the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
Last, liability coverage protects you in case something takes place on your property that would make you financially responsible, such as if someone's belongings were damaged or if they were injured on your property.
How much will it cost?
Depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors, the cost of your home insurance policy will vary. Generally speaking, more coverage means more cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. When you purchase your insurance policy, you can choose to raise or lower your deductible. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
You might be wondering how much coverage you need and what that will cost if you're a first time home buyer.
Home insurance is an insurance policy that you purchase to cover the cost of replacing your home and its contents in the case of a fire, damage or theft. It protects you from liability too, in the event that someone's belongings are damaged while they're in your home, or if someone hurts themselves while on your property.
Your home will be covered for all risks with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Specific perils are set out in the policy; basic home insurance covers only these. It doesn't cover as many possible hazards as a comprehensive policy, so it's a cheaper option. Broad home insurance is a mix of comprehensive insurance and basic insurance policies.
How much coverage do you need?
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Get an estimate, by asking a home builder to walk through your home and tell you what it would take to rebuild; base how much replacement coverage you'll need on that figure. Remember to note all the expensive/unique details that would drive up the replacement cost. After you know your home's replacement cost, you choose the type of coverage.
Taking an inventory of your personal possessions and the contents of your home will help you to make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft.
Last, liability coverage protects you in case something takes place on your property that would make you financially responsible, such as if someone's belongings were damaged or if they were injured on your property.
How much will it cost?
Depending on the amount of coverage required, as well as the deductible you choose, the neighbourhood you live in and other factors, the cost of your home insurance policy will vary. Generally speaking, more coverage means more cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. When you purchase your insurance policy, you can choose to raise or lower your deductible. As a rule of thumb, your monthly premiums are lower with a higher deductible. Shop around, and talk to your insurance representative about any questions or concerns, in advance of making your purchase.
About the Author:
To learn more, visit New Westminster Realtor, or if you're looking to sell your home visit this link.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_xx_usoz_4.gif)
No comments:
Post a Comment