Your home is likely your largest single investment. As such, it is important to have it properly covered in the event of a loss.
Types of Coverage
There are many different types of homeowners insurance from a basic policy that covers you for fire loss, to a policy which covers you for almost anything that could occur.
Amount of Coverage
Insurance coverage for the home should always be based on what it would cost an insurance company to rebuild the home after a loss. Rebuilding cost includes not only the cost of labour and materials, but also the cost to remove debris. Unlike new construction, there can be substantial costs removing the debris of the damaged home before you even begin re-construction. It is important to note that rebuilding cost is often very different from real estate values.
Other Special Coverages and limits
Detached Structures - This is coverage for any detached garages or sheds
Personal Property - Coverage for your contents inside the home. It is important to discuss whether your insurance company will depreciate your contents in the event of a loss, or whether they allow you to go and purchase new items to replace your old items. You should also review the special limits with regards to your contents. All policies will have Special Limits to limit the amount they will pay for items such as: Jewellery, furs, money, computer equipment, sporting equipment, CDs and DVDs and collectibles. You should always be fully aware of the special limits of insurance
Additional Living Expense - In the event of a total loss, it often takes up to a year to rebuild your home. Additional living expense will pay for temporary lodging while your home is being rebuilt.
- Earthquake Coverage
- Sewer Backup Coverage
- Overland Water Coverage
- Ground Water Coverage
- Umbrella Liability
- Riders for Special Items