Do you need to buy or renew home insurance soon? Whether you’re a homeowner, renter or condo owner, there are many insurance coverages and options to choose from, and it’s often difficult to make sense of them all. This article explains, among other things, the types of home insurance in Canada, strategies for reducing your insurance premiums and tools for comparing home insurance.
Canadian law does not require you to take out home insurance, but mortgage lenders and banks do require it for properties that are not fully paid up. Specifically, you must provide proof of insurance to obtain a loan or a mortgage line to guarantee that your property is protected against risk.
Home insurance laws in Canada may differ by province or territory. So it’s essential to familiarize yourself with the rules in force in your area.
For many of us, buying a home is the biggest investment of our lives. But while there are many advantages to becoming a homeowner, it’s essential to protect your investment. That’s where home insurance comes in. It provides a safety net by covering repair or replacement costs in the event of unforeseen circumstances.
Home insurance protects not only your home, but also your personal property and any civil liability claims. This is important for :
Although home insurance is not compulsory for tenants, it is nonetheless important. Renters’ insurance protects your personal belongings against the unexpected: theft, vandalism, water damage and fire. What’s more, the building owner’s insurance policy will not cover your personal belongings.
Home insurance policies in Canada are fairly comprehensive, generally covering personal property and belongings, civil liability, additional living costs and detached structures. But you can also add options to customize your policy to your needs.
Items generally covered include :
Optional protection options generally include :
For each of these coverages, conditions and limits apply. Check with your insurer.
Although home insurance offers comprehensive coverage, it does have its limitations. Home insurance policies in Canada generally do not cover damage caused by lack of maintenance, normal wear and tear, pest infestations, mold, rot, intentional damage, commercial activities, high-value items exceeding standard limits, vehicules and vacant homes.
In Canada, there are generally three types of home insurance: basic, extended and comprehensive. They differ in their level of protection.
To make the right choice, assess your needs and determine what you can afford to pay in the event of an uncovered claim. Then, find a balance between coverage and cost based on your financial situation. Also check the limits and conditions for the items covered. If necessary, don’t hesitate to talk to an insurance agent or property and casualty insurance broker like YouSet.
The cost of home insurance in Canada varies according to a number of criteria:
Here are a few tips and tricks to help you reduce your home insurance premiums.
First of all, you can combine your home and car insurance with the same insurance company. In this way, you can obtain a discount or a customized offer. For example, with our partner YouSet, you can save up to an additional 15% when you combine your car and home insurance.
You can compare and even take out a home insurance policy yourself online. This method has many advantages, because you control exactly what you’re looking for. However, as insurance is a complicated subject, you may want to talk to a professional to explain the terms and conditions of the different offers. You can use our home insurance comparator to get several home insurance quotes.
Don’t make the mistake of renewing your home insurance policy without getting several quotes. Don’t settle for the first quote you receive. Conversely, get several home insurance quotes and compare them before making a decision. For most insurance companies, you can get quotes online or over the phone.
To reduce the number of quotes, you could contact a general insurance broker like YouSet. Insurance brokers have access to several insurers and will usually present you with the best offer. What’s more, they often have access to exclusive discounts.
When your home is well maintained, you’ll be in a better position to pay less for insurance over time. Although some events are beyond your control, regular maintenance can certainly help reduce your insurance costs. As a general rule, you should budget between 3% and 5% of your home’s value each year for maintenance costs.
Increasing your insurance deductible is another excellent way to reduce your insurance premiums. Of course, your deductible in the event of a claim will be higher. But, if you maintain your home, the likelihood of a claim will be reduced, and your monthly premiums will be lower. Consult your insurance company to find out about the different deductible options available to you.
When you pay your home insurance for the year in one lump sum, some home insurance companies offer a discount. This way, you can reduce your home insurance premium. Check with your insurer.
Tip: Some home insurance companies accept credit card payments. Others will only accept payment of your home insurance premium in one instalment. Where applicable, you can earn reward points and even unlock generous welcome bonuses.
Filing an insurance claim can be stressful, especially if your property has been damaged. Here are some useful tips to help you:
Service standards may vary from company to company, depending on the extent of the damage. So keep these tips in mind if you need to submit a claim.
Although not mandatory, home insurance is essential to protect your home and personal belongings. In this guide, we’ve explained the types of protection and costs to help you choose the best coverage for your needs. Now, the next step could be to compare home insurances with our tool.
No. Canadian law does not require you to take out home insurance, but mortgage lenders and banks do require it for properties that are not fully paid up. For tenants, home insurance is still important, because the building owner’s insurance policy won’t cover your personal belongings against the unexpected: theft, vandalism, water damage and fire.
The average cost of a home insurance policy varies according to a number of criteria, including place of residence, type of property (house, condo, rental) and type of coverage (basic, extended, comprehensive). In Quebec and Ontario, the average cost of home insurance is $87 ($1044/year) for a house, $31/month ($372/year) for a condo and $23.50/month ($282/year) for a rental.
The best insurance to cover your home and personal belongings is comprehensive home insurance, but it’s also the most expensive. What’s more, the cost of home insurance varies according to a number of criteria, such as where you live, the type of property you own, the type of coverage you have, and the value of your home and personal belongings.
Savings are here:
