In Canada, mortgage companies require that you buy home insurance to cover the balance of your mortgage in the event that your home needs to be replaced or repaired due to fire or other damage. If you're looking for the right home insurance for you and your family, here's what you need to know.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Basic home insurance only covers the specific perils that are set out in the policy. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage do you need?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
Finally, liability coverage is important to protect you in case something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged.
What does 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. In general, the more coverage you have, the more it will cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. 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.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Basic home insurance only covers the specific perils that are set out in the policy. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage do you need?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
Finally, liability coverage is important to protect you in case something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged.
What does 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. In general, the more coverage you have, the more it will cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. 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:
Please visit toddconner.com or see this home buying and selling video for more details.
In Canada, mortgage companies require that you buy home insurance to cover the balance of your mortgage in the event that your home needs to be replaced or repaired due to fire or other damage. If you're looking for the right home insurance for you and your family, here's what you need to know.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Basic home insurance only covers the specific perils that are set out in the policy. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage do you need?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
Finally, liability coverage is important to protect you in case something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged.
What does 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. In general, the more coverage you have, the more it will cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. 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.
If you're a first time home buyer, the prospect of choosing a home insurance policy you might be wondering how much coverage you need and what that will cost.
You purchase a home insurance policy so you are protected from the cost of replacing your home and its contents in the case of damage, theft or fire. Your liability for anything that occurs on your property, such as if a neighbour were injured or their belongings damaged while they're in your home, is also covered.
All risks to your home will be protected with a comprehensive home insurance policy; other than those which insurance policies do not normally cover, such as natural disasters.
Basic home insurance only covers the specific perils that are set out in the policy. This option is less expensive because fewer hazards are covered, as compared to a comprehensive policy. A mix of comprehensive insurance and basic insurance policies is called broad home insurance.
How much coverage do you need?
If your home were wiped off the map, your home insurance policy should cover enough to entirely rebuild and furnish your home. A home builder can estimate what it would take to rebuild by doing a walk through of your home; that figure should be the basis for how much replacement coverage you'll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost. You'll need to know what kind of coverage you want, once you've determined the replacement cost of your home.
To make sure that you are completely covered and reimbursed if you have to file a claim for damages or theft, take an inventory of your personal possessions and the contents of your home.
Finally, liability coverage is important to protect you in case something happens on your property that would cause you to be financially responsible, such as if someone were injured on your property or some of their belongings were damaged.
What does 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. In general, the more coverage you have, the more it will cost.
The amount which you are required to pay against the full cost of the damage or repairs is called the deductible. You can choose to raise or lower your deductible when you purchase your insurance policy. 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:
Please visit toddconner.com or see this home buying and selling video for more details.
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