According to Financial Post’s Mortgage and Real Estate, 70% of Canadian homeowners now own their home. That number has risen almost 2% since 2006, representing a steady improvement in the Canadian real estate market. The fact is, however, that no matter how great it may be to own your home, it represents an incredible investment. As CBC News points out, the average home price in Canada is $382,373. Even if you were able to work out favorable mortgage terms, it constitutes a lifelong investment. Here are three facts about home insurance Canada’s citizens should know to better defend their homes.
- Specific or Broad?
- Inventory for Protection
- What Affects Home Insurance Rates?
Canadian citizens looking for home insurance providers should know beforehand what it means to be covered under “all perils” versus “named perils”, according to Insurance Hotline. Quite simply, “all perils”, in theory, protects you from absolutely anything that might affect your home. A “named perils” plan, on the other hand, will only protect your from certain things. For instance, if you have a plan covering flood damage and that from earthquakes, then do not expect home insurance coverage for fires. Having said that, you should be aware that an “all perils” plan oftentimes has exceptions and may not be as encompassing as the name suggests.
The Insurance Bureau of Canada writes that each Canadian citizen should be sure to inventory each and every piece of their personal belongings. Bookshelves, cabinets, and clothing are just a few of the types of items you should be cataloging. In the case of a disaster, an accurate inventory will allow you to seek full recompense from your home insurance providers as covered under your policy.
As in any other country, home insurance Canada’s companies offer varies not only in coverage but in price. Your total coverage is a huge factor in deciding what amount you will be paying from year to year. The best deal insurance companies offer more cost effective plans by providing you with package deals covering auto and home coverage in one.
Did you know that, according to the Insurance Bureau of Canada, natural disasters that were once happening every 40 years have recently begun happening every six? Subsequently, you might consider home insurance Canada offers for floods, earthquakes, and wildfires more seriously than you would have in the past. However, be aware that these extra features may increase your rates. Having said that, shopping around can save you a lot of money. Online home insurance brokers are now more common and competitive with their brick and mortar counterparts.
Whether you live in Toronto, Vancouver, or Montreal, the fact is you need to do what you can to protect your home, your investment, and your family’s future. Doing your research on what is the best insurance company for your needs is one step to doing exactly that. Keep these three tips in mind when searching for the best home insurance Canada has to offer.