Are You Well Covered?

    What you should know about HOMEOWNERS INSURANCE…


Home insurance policies can differ greatly from company to company, but they typically fall into one of these main categories:

Basic Policy: Covers both your home and its contents against damage or loss due to a number of specific “named perils” such as fire, lightning, wind, hail, theft and some types of water damage.

Broad Policy: Includes “all-rick” coverage on the dwelling, which protects your home from accidental damage or loss caused by any event that is not excluded by the particular policy. Contents coverage, however, remains limited to damage or loss resulting from the policy’s “named perils.”

Comprehensive Policy: Insures both your dwelling and the contents against loss or damage from any peril except for those specifically excluded by the individual insurer.

Condominium Policy: For homeowners who what protection beyond what is included in the condominium corporation’s policy, specifically liability coverage and insurance for upgrades and belongings inside their unit.

Tenant Insurance: Offers basic liability protection for tenants to cover damage they might accidentally cause to the unit or its contents. It will also pay for a renter’s own personal belongings – items typically not included in their landlord’s insurance policy.

If you own a cottage, you may insure it on the same policy as your home insurance or purchase a separate policy. Coverage is often more limited than the options available for dwellings that are occupied year-round.

Be sure you have enough coverage. Most mortgage banks have minimum coverage requirements for financed homes, but to fully protect your investment it is often recommended that your policy covers 100% of the replacement cost.

Estimate the cost to rebuild:
  Ask your real estate or mortgage professional about the average local building costs and multiply it by the square footage of your dwelling. Remember that the cost to rebuild does not include the value of the land itself.

Account for the value of your personal possessions:
  Determine how much you would have to spend to replace the contents of your home with new items at current prices.

Maintain the right scope of coverage:
  Contact your insurance company to adjust your coverage if you have completed home improvements, acquired or no longer own certain valuable items or suspect that the replacement costs of your home may have change for any reason.

Read your insurance policy carefully. Common exclusions include damage caused by flood or sewer backup, earthquakes, mold and losses that result from normal wear-and-tear, neglect or faulty workmanship, among others. Ask your agent about recommended supplemental coverage options.