Compare Home Insurance Quotes in Canada
Do you have home insurance? If you don’t, you’re already putting yourself at risk financially should a natural disaster strike or accident occur in your neighbourhood. Whether you have taken out homeowners’ insurance before or are looking for a new policy, there are a few things you should know before making your final decision on the best home insurance quotes.
Learning more about home insurance is an excellent step towards safeguarding your property and investments if you currently reside or plan to move to Canada.
Get the Best Home Insurance Rates in Canada
When you’re ready to get the best homeowners’ insurance rates, you have different options at your disposal. You can shop for quotes online, work with a licensed agent or get in touch with a representative from your company of choice.
Whichever option you consider, make sure you get a minimum of three quotes so that you can get the best bargain for your money. The best insurance rates will come by comparing policies with similar coverage limits, deductibles and endorsements.
Types of Home Insurance Policies
Comprehensive Coverage
Also known as all-perils policy, comprehensive insurance is a complete form of coverage. It covers all risks to your home and its contents – except any risks listed as exclusions. This coverage is your best bet if you have vast risk exposure.
Standard Coverage
Standard home insurance provides less coverage than your comprehensive policy. It only protects against the risk to your home and contents, which are specifically named. You’d want to choose this policy to save money on premiums but are prepared to pay for some losses by yourself.
Broad Coverage
This type of home insurance falls between standard and comprehensive policies and has two parts. It will cover all risks to your home apart from those listed as exclusions and only cover special perils on your home contents.
No Frills Coverage
A no-frills policy isn’t offered by all insurance providers and is typically limited to properties that do not satisfy usual standards. This type of coverage would be ideal for homes with serious structural problems or that require extensive renovations.
Personal Liability
Personal liability protects you against lawsuits filed against you by people who have been injured on your property. Your property must be insured in this case.
Benefits of Home Insurance
Protects You From Natural Disasters
Natural disasters can occur at any time, and you can’t control the magnitude of damage they can cause to your home. Home insurance can help protect your residence from common disasters like floods and hurricanes, which could turn your home into ruins. Your insurance will pay for all repairs and renovations.
Protects You Against Lawsuits
You’re likely to face a lawsuit if someone gets injured while on your property. Your home insurance can pay for any legal fees and costs you incur. It will also pay the medical bills of the injured person.
Mortgage Requirement
In some cases, homeowners’ insurance may be required to take out a mortgage. Your lender will need you to have a specific insurance level in case of a hazard since your house is their collateral.
Home Insurance FAQs
Why Do I Need Home Insurance?
If you’re like many Canadians, your home probably makes up a considerable portion of your net worth, and it’s an investment you’ve worked hard to put together. A home insurance policy that protects your home, content, and other assets in case of a storm, fire, liability claim or unforeseen peril are necessary.
Without a homeowners’ policy, you’ll have to pay out-of-pocket for damages caused by any of the events mentioned above.
How Much is Home Insurance?
The average cost of home insurance in Canada is about $840 per year, with prices varying strongly across provinces. Besides, it would help if you understood that home insurance providers underwrite home risks differently so that many other factors will impact the cost of your homeowners’ policy.
Some factors that will affect the cost of your premiums include:
- Location. The location of your home will impact your premiums. You’ll pay a higher premium if your home is located in a flood or earthquake-prone area.
- Age of your home. You will pay more to insure an older home since its components might have degraded and don’t meet the current building codes.
- Security features. Installing safety features like smoke detectors, alarm systems, and deadbolt locks in your home could lower your premium since they reduce your property’s likelihood of damage or theft.
- Claims history. If you have filed many claims in the past, insurance companies may perceive you as a high-risk individual and charge higher premiums.
The easiest way to get an idea of how much you’ll pay for home insurance is to compare multiple quotes. You could use a comparison tool to narrow your search to the nest home insurance providers.
What Does Home Insurance Cover?
Generally, home insurance will cover your personal belongings, additional living expenses if you need to relocate for a while, and personal liability if you’re sued for injuries sustained on your property. Home insurance will pay for any damages associated with the following risks: fire, theft, wind and hail, explosion, water damage, vandalism, and earthquakes.
Can I Change Home Insurance At Any Time?
Yes. You can switch your home insurance to a different insurance provider to improve your coverage or lower your premiums. You don’t have to wait until the policy expires.
Do Home Insurance Claims Follow You?
Home insurance claims will probably follow you for five years or more. Every request you file is recorded in a database, and this could come to haunt you when you want to switch an insurance provider or take out a new cover.
Does Home Insurance Cover Mortgage Payments?
No. While homeowners’ insurance protects you from fire, theft or water damage. It doesn’t assist with any mortgage payments you cannot meet. You will need to purchase a separate insurance policy for that, often known as mortgage protection insurance.
