Why you don’t have to purchase home Insurance

Elliott Insurance Services    August 5, 2015

Tree falling on house - Home Insurance

Everyone knows that you must purchase auto insurance to drive on the roads legally, but I’ll let you in on a secret – there is no law in Ontario saying you have to purchase home insurance.

So why do we buy home insurance?  Well, if you have a mortgage the bank will likely require some sort of insurance to protect the home.  But what if you don’t have a mortgage, why would you still buy insurance?

Often, your home is the most expensive asset you own.  As such, it is important to protect it from unavoidable loss.  Most home insurance policies cover more than just fire damage to your home.  They also cover damage caused by lightening, explosion, smoke, falling object, vandalism or malicious acts, wind or hail, theft and many others.  Unfortunately, there is no policy that covers everything, so choose carefully.  In addition to coverage for your home, most insurance policies also include coverage for your contents, and even pay for a hotel if the damage to your home is so severe that you are unable to stay.

Probably one of the most important aspects of home insurance actually has nothing to do with damage to your home – it’s liability coverage.  Liability coverage protects you in the event that a third party takes legal action against you.  Most people realize this covers them if a guest hurts themselves on your property and sues you, but people are often surprised to realize that some policies will offer liability coverage that protects you from liability claims occurring anywhere in the world.  This means if someone were to sue you because they tripped over your suitcase at an airport in Paris, your home insurance policy could cover you.

Though there is no law that says you have to purchase home insurance, I would still suggest you do.  There are many different home policies which cover many different things so if you have home insurance, be sure that you speak with your provider to know exactly what it covers and what it doesn’t.

If you are going to purchase home insurance, I suggest you speak with an Independent Insurance Broker to help you navigate the options and be sure you are getting the best policy coverage for the best price.  If you don’t have an Independent Broker, Contact us and we would be happy to help!

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