Your home remains one of your most prized properties. Thus, it makes sense to ensure that it is well protected from losses and damages. Home insurance is the best way to ensure that your home. Its assets are secured, even in the event of unpleasant circumstances like fire outbreaks, natural disasters, theft, etc.
Before applying for home insurance in Ontario, it is important that you understand how the insurance coverage works. That is, understanding what is covered and what isn’t. To make things easier for you, we have highlighted the basic coverage of a home insurance policy.
Home Insurance
Your Belongings
Interestingly, insurance coverage also extends to the interior of your home. Your personal effects, furniture, home accessories, including your sport gadgets, are covered if they are damaged by an insured disaster or stolen. The standard coverage for your belongings is often somewhere around 50- 70% of the insurance you have on the structure of your home.
What about your expensive jewelry and works of art? Are they covered too? Of course! These accessories are covered as well. However, there are usually dollar limits if they get stolen. To properly insure such items, you will have to buy a special personal property endorsement or floater. Then you will insure them for their officially estimated value.
Liability Protection
Typical home insurance offers liability protection. It does this by covering the medical bills or legal expenses associated with injuries sustained by someone not living with you. For instance, if your neighbor sustained an injury in your yard due to your negligence, your policy would cover the medical bills and legal expenses (should the individual sue).
Liabilities can affect your finances in ways unimaginable. Thus, it is important you buy insurance with enough liability protection and an affordable rate.
The Structure of your Home
If your home is located in an area prone to fire outbreaks, hurricanes, or other natural disasters, it is important that you buy home insurance. Why? Because home insurance covers the structure of your home. That means, if your home is struck by lightning, burnt, or affected by a volcanic eruption, your homeowner policy will pay to either repair or rebuild your home.
Most homeowner’s policies in Ontario also cover separate structures like a garage; tool shed, etc. However, the coverage is about 10% of the amount of insurance you have on your home’s structure
Mind you, a typical policies wouldn’t pay for damages resulting from flooding, earthquake, or a regular disintegration. That said, if you are Looking for a home in Ontario, get the best insurance rates here. Insurance with an affordable rate can still offer you adequate coverage for your home and assets. This ensures that you live within your means.
Additional Living Expenses
If you moved out of your home in Ontario due to the effects of an insured disaster, ALE would settle the additional costs. Included will be your restaurant bills, hotel costs, and other bills you incur while your home is being reconstructed.
While the concept of additional living expenses seems amazing, you should note that it has limits. In fact, some policies come with time limitations. But, these limits are different from the amount available to fix or rebuild your home. If you exhaust your ALE, your insurance company will still finance the cost of rebuilding your house. This is as stated in the policy limit.
Conclusion on Home Insurance
Home insurance is what you need to secure your home and belongings from some natural disasters and theft. With the right insurance policy and broad coverage, you should be able to sleep well, knowing fully well that your home insurance has your back!