Like any big investment, your home is something worth protecting. Home insurance is one of the ways you can do just that. It provides you with financial protection against unforeseen loss or damage to your home, personal belongings and liability so you can get up back on your feet.
Is home insurance mandatory?
Unlike car insurance, home insurance isn’t mandatory in Canada. However, most banks and mortgage lenders will likely require you to have home insurance and show proof that you have it before lending you money. When you take out a loan, your lender will want to make sure their investment is protected – something home insurance can do.
Why you need home insurance
Here are three reasons why homeowners should consider getting home insurance:
Protects your home
Buying a home is a big purchase. Once you’ve furnished and decorated your place so it’s move-in ready, it can be tempting to skip out on home insurance to save a few dollars every month. However, buying a home policy means you’re taking a proactive step towards protecting your property against most losses due to wind, fire, theft and more. With home insurance, you can rest easy knowing you have the means to help cover repair and rebuilding costs.
Safeguards your belongings
Home insurance covers more than just your physical home. It also covers your personal belongings like furniture, clothes, laptop, and bikes in case of theft, damage, or loss. Depending on your policy, your home insurance may even cover items you take outside of your home such as when you’re on vacation.
Covers personal liability
If a person who doesn’t live in your home injures themselves on your property, you may hold some responsibility. If this is found to be the case, you might end up having to pay for their bills like medical fees. If you’re sued for damages, you may also have to bear the costs of litigation. Home insurance helps cover personal liability, so if situations like this occur, you’re protected and can rely on your policy to help pay for any necessary related expenses.
Finding the right home insurance for you
When choosing a home insurance policy, it’s important to think about how much coverage you’ll need. One of the ways to do this is to assess the value of your home. If you’re wondering how insurance companies determine the replacement value of a home or how to find out the risk level of your property, speak with your insurance representative. They’ll have the tools and information to make these estimates.