Buying or renting a new home can be a confusing and complicated process – and looking into insurance can feel even more overwhelming. From the wide variety of types of insurance to the ranges of coverage therein, it’s important to learn factual information that can help inform your eventual choice of insurance.
Below, our home insurance specialists have debunked seven common myths about home insurance. We hope this helps you understand the importance and value of having a good home insurance policy.
Myth #1: Home insurance is mandatory
Home insurance in Canada is highly recommended but isn’t mandatory. Unlike automobile insurance, you don’t need coverage to buy a home. That being said, if you need a mortgage or are buying a condo, you may be required to purchase home insurance. Home insurance is not regulated; however, it is one of the most common insurance policies purchased.
Though it is not mandatory, a good home insurance policy has many benefits. Not only can it protect you from major financial liability for home damage, but a good policy can also protect your personal belongings and detached structures. Housing insurance can cover accidents, natural disasters, theft, vandalism, weather damage, explosions, fires, and more. You can also be protected if someone gets injured on your property, or if an issue that stems from your property affects another property nearby.
Myth #2: You are fully covered by your landlord’s home insurance
If you’re renting, you may be under the assumption that your landlord’s home insurance fully covers you. This is not true. Your landlord’s insurance covers the building but does not cover any of your personal belongings.
It’s important to get tenant insurance that will protect your belongings in the case of accidents such as water damage, building fire, or burst water pipes. Tentant insurance can also cover the cost of a hotel or other form of accommodation should your rental need repairing or otherwise be unavailable. Additionally, it will keep you covered should a visitor be injured in your home.
Myth #3: Home insurance is expensive
Many people believe that home insurance is very expensive. Fortunately, it doesn’t have to be, and at the end of the day, it can save you thousands or even millions of dollars in the long run. It’s truly an investment for you, your family, and your home’s future.
There are a plethora of different home insurance policies to choose from. Asking your insurance broker lots of questions and doing your own research is important to make sure you get the coverage that’s right for you and your situation.
Myth #4: All home insurance covers water damage
Water damage is one of the most common household incidents and can cause hundreds of dollars worth of damage. Unfortunately, basic coverage may not have coverage against water damage. Make sure to get a policy that protects you against this.
Myth #5: If you have home insurance, all your belongings are covered
Many basic home insurance policies cover your home structure but not all of your belongings inside of your home. Discuss with your insurance provider the many different approaches you can choose. Basic insurance limits limit how much of your personal belongings are covered. Enhanced coverage may be recommended depending on what you want to be covered.
You can even get home insurance that covers a specific type of property. For example, cottage insurance has more tailored coverage for cottage-related incidents than typical home insurance does. This means you can rest easy knowing your property is insured exactly how it should be.
Myth #6: Your condo corporation covers your insurance
When buying a condo, your corporation will likely need you to buy a separate condo insurance policy. Their strata insurance covers the building itself and any common areas in the building. However, you will need insurance that protects your personal belongings, liability, and specific unit. Liability coverage is especially important for condo owners and renters to protect you financially.
With condo insurance, you can protect your personal belongings and be insured against property damage and any liability claims filed if someone becomes injured in your condo, among other benefits.
Myth #7: While on vacation, your insurance will cover your home
Every once in a while, everyone can benefit from a long, much-needed vacation! Whether you’re relaxing on a beach, exploring the streets of a luxurious city, or eating your way through the fine cuisines of Europe, home insurance is the last thing you should be worrying about.
If you’re on vacation for an extended period, your policy may not cover your home during those days. If you leave your house unattended for longer than seven days and something happens, this can impact your coverage. One way to avoid this is by asking someone to house-sit your home or check in once a week while you’re gone.
Before going on a long vacation, we highly advise you to speak with your insurance provider. If your home is not covered while left unattended, insurance brokers like Marathon Insurance can help you come up with the best, most affordable solution.
For further information about how the trusted professionals at Marathon Insurance Group can help you find the right home insurance policy, please don’t hesitate to reach out at 844-429-0837 or on our website here.
Our insurance specialists can ensure you get the best home insurance policy for your unique needs. Marathon Insurance Group looks forward to hearing from you soon!