Chances are your home is your biggest asset. If a catastrophe occurs, such as a fire or a major earthquake, is this asset properly protected? How long has it been since you went over the details in your home insurance policy? You should be reviewing your home insurance policy once a year with your insurance provider. Many times, a homeowner has a different situation later than they did when they first got the policy, and each year it should be reviewed.
The two most common types of home insurance policies are:
First are named perils: These are loss or damage caused by things like lightening, explosion, fire, falling objects, impact from vehicles, theft, water damage, and hail for some examples. Your insurance policy only covers you for the types of damage that it lists in the policy.
Comprehensive: These comprehensive or "all risk" policies protect you against all types of loss except those specifically excluded. Landslide, snow slides, and damages from war or terrorism are some of the things that usually are not included. For a homeowner that wants to be prepared for any situation, they should go for the best, which are comprehensive policies.
There are a few crucial aspects of your policy that you should review:
Guaranteed building replacement: If you own a home, this coverage guarantees that your policy will pay to rebuild your home, even if it's over the policy limit. With market fluctuations, and catastrophic events such as wildfires and earthquakes, the cost to rebuild your home can increase dramatically from the amount you originally insured it for.
Earthquake damage insurance: Many policies will allow you to pay more and get additional earthquake coverage. It is a good idea to get earthquake coverage, since there is no telling when and where an event like this will happen.
Broad water damage protection: Traditional insurance companies usually include some form of water damage protection. However, it can be quite limited, and often excludes sewer backup, which, in some cases, can be added for an extra charge.
Building bylaw protection: After a major damage occurs and the home needs to be rebuilt, the process must be done according to the most recent building regulations. Even if your home is only being partially reconstructed, the building regulations need to be taken into account since they have likely changed over the years. The homeowner must pay for the increase in cost, unless this is specifically covered in your insurance policy. Many people forget to get coverage such as this. The cost difference could be many thousands, that come out of the homeowner's pocket.
Specialty property coverage: Traditional insurance policies provide a limited amount of coverage for certain specialty items, whether you own any or not. Some examples of this would be electronics, valuable antiques, musical instruments, jewelry, and other items like these.
For condo owners only: As a condo owner, you have some unique insurance needs: building improvements to cover changes to the unit since it was originally constructed, condo property deductible assessments to cover the costs if the strata charges you with a portion of their deductible, condo property damage assessments and condo liability damage assessments to cover you if you're assessed for a portion of any loss the Strata suffers for which they don't have adequate insurance.
The two most common types of home insurance policies are:
First are named perils: These are loss or damage caused by things like lightening, explosion, fire, falling objects, impact from vehicles, theft, water damage, and hail for some examples. Your insurance policy only covers you for the types of damage that it lists in the policy.
Comprehensive: These comprehensive or "all risk" policies protect you against all types of loss except those specifically excluded. Landslide, snow slides, and damages from war or terrorism are some of the things that usually are not included. For a homeowner that wants to be prepared for any situation, they should go for the best, which are comprehensive policies.
There are a few crucial aspects of your policy that you should review:
Guaranteed building replacement: If you own a home, this coverage guarantees that your policy will pay to rebuild your home, even if it's over the policy limit. With market fluctuations, and catastrophic events such as wildfires and earthquakes, the cost to rebuild your home can increase dramatically from the amount you originally insured it for.
Earthquake damage insurance: Many policies will allow you to pay more and get additional earthquake coverage. It is a good idea to get earthquake coverage, since there is no telling when and where an event like this will happen.
Broad water damage protection: Traditional insurance companies usually include some form of water damage protection. However, it can be quite limited, and often excludes sewer backup, which, in some cases, can be added for an extra charge.
Building bylaw protection: After a major damage occurs and the home needs to be rebuilt, the process must be done according to the most recent building regulations. Even if your home is only being partially reconstructed, the building regulations need to be taken into account since they have likely changed over the years. The homeowner must pay for the increase in cost, unless this is specifically covered in your insurance policy. Many people forget to get coverage such as this. The cost difference could be many thousands, that come out of the homeowner's pocket.
Specialty property coverage: Traditional insurance policies provide a limited amount of coverage for certain specialty items, whether you own any or not. Some examples of this would be electronics, valuable antiques, musical instruments, jewelry, and other items like these.
For condo owners only: As a condo owner, you have some unique insurance needs: building improvements to cover changes to the unit since it was originally constructed, condo property deductible assessments to cover the costs if the strata charges you with a portion of their deductible, condo property damage assessments and condo liability damage assessments to cover you if you're assessed for a portion of any loss the Strata suffers for which they don't have adequate insurance.
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