Most insurance shoppers that are looking for home insurance in Ontario want to buy enough insurance so that if their home and personal property are damaged that their insurance is going to cover the cost of its replacement. The problem is that there are so many options available for home insurance that it can be difficult to know if they are making the right choice.
What is the Best Home Insurance in Ontario?
The best home insurance for those who are looking to be fully covered is comprehensive insurance. But, although this is the most extensive type of coverage, it can vary among the different Insurance Providers.
What is Comprehensive Home Insurance In Ontario NOT Likely to Cover?
Perils That Are Not Covered
This refers to events that are predictable such as;
- Damages caused by flood waters
- Freezing of indoor plumbing
- Damage caused by freezing outside of the home
- Heat damage to personal property as a result of intentional exposure to heat
- Insect and Rodent damage
- Damage to property that was acquired in an illegal manner
- Criminal acts of the policyholder that cause a loss
- Loss due to War
- Loss due to terrorism
- Loss due to nuclear risks
- Wear and tear
This is insurance for additional coverage that is not normally found in comprehensive insurance such as;
- Some of those items that are not covered in the comprehensive packages listed above
- Guaranteed replacement cost
- Sewer backup
- Increased coverage for jewelry and valuables
What is covered By Ontario Comprehensive Home Insurance?
Even though the Insurance Companies will differ in what they offer they mostly keep a standard of what is covered by comprehensive insurance.
- The coverage should be for the replacement cost to rebuild the home.
- Most properties have other buildings that are not attached to the home like a garden shed or a detached garage.
- All of the standard items that would be found in the average home. This will include personal items such as jewelry and artwork.
- If the home is damaged to the point where it cannot be lived, the insurance company will allow a specific amount of money to cover living expenses away from home while the home is being repaired or replaced.
Most homeowners don’t realize that an essential part of their home insurance includes Liability coverage. This is the type of coverage that comes into play when a third party is involved in a claim.
- If an individual or their property is damaged while on your property then this section of insurance goes towards the costs.
Voluntary Medical Payments:
If you happened to injure someone accidentally and wanted to contribute to their medical costs this portion of the insurance coverage is allocated to this.
Voluntary Property Damage:
You could be visiting someone and accidentally damage their property. If you have comprehensive insurance, then it will help with the costs.
Comprehensive insurance also can include some additional types of coverage.
- Fire Department costs
- Counterfeit checks
- Credit card theft
- Spoiled Frozen foods
- Replacement or repair of locks if keys are stolen
- Mass Evacuation – leading to additional living expenses
- Information Reward – If malicious damage is done to your home or property and someone comes forth with information to help apprehend those that did the damage then there is an award coverage
This is the average type of insurance that one can expect to find in comprehensive insurance packages. Now with there being so many insurance companies, there is a chance that some have added some additional extras.
Making Realistic Insurance Choices
One of the mindsets that many people have when they buy home insurance is that it “is better to be safe than sorry”. Which is a good attitude to have towards comprehensive home insurance. But one still has to be realistic about it especially when it comes to upscaling the comprehensive insurance with add-ons.
Understand Exactly What Each segment of the policy you are buying covers exactly.
An informative article released by CBC News gives some great insight into home insurance coverage where it says…. “Don’t be fooled by wording, cautions Karageorgos: many policies might list coverage for water damage, but that refers to incidents like burst pipes or overflowing toilets, not severe weather and flooding. He said homeowners should also be aware that if water is entering the basement by a crack in the foundation, for example, it falls under the category of seepage and could signal a maintenance issue that would also prevent an insurance payout.”….source: cbc.ca
All too often people make assumptions about their home insurance. Nobody wants to take the time to read through a policy. Or, ask pertinent questions. Yet, the answers to some of the questions can help to determine if additional insurance is needed.
Is The Coverage Going to Offer Enough Financial Protection?
There are a lot of items that are covered under comprehensive insurance. But, is the maximum claim allowance going to be enough to really cover the cost of replacement? One may have $500,000 in replacement costs which seems like a lot of money for contents. But take a good look around your home and do a mental assessment as to whether you could replace everything in your home as it is now at today’s cost to replace these items. Something else to keep in mind is if you have had your insurance coverage for several years, it may be time for a new quote. There may be additional items covered in comprehensive insurance that were not available at the time you took out your insurance.
Do Your Circumstances Warrant Any Increase in the Coverage?
If you know what the insurance companies are looking at as risks when setting your premiums you can use this same information to really focus on determining if you have enough coverage in place. What they will use as metrics includes;
- The infrastructure of your home
- Its heating source
- What the electrical system is comprised of
- What the pipes are constructed with
- How close you are to a fire hydrant and fire station
- The age of the roof
- The area in which you live
Try to determine what there are about these that are going to be positive and negative aspects to setting your premium.
Reducing Your Comprehensive Home Insurance Costs in Ontario
You have the opportunity to reduce your home insurance costs through discounts. Look to see what each company is offering for this that you are considering buying your insurance from.