Understand and choose your home insurance

How to choose the home insurance that best suits your needs? What does your insurance cover? How to save on your insurance premiums? Here are some questions you might ask yourself. This file will help you answer most of them so you can make an informed choice about your home insurance.

Why take out home insurance?

Even if home insurance is not required by law, it is required, most of the time, by the financial institution that grants you your mortgage loan. In the event of a claim, home insurance can cover the replacement of your belongings and damage to your property, all depending on the protections, limits and exclusions mentioned in your contract. This will be the case if, for example, your property is damaged due to a fire, or if your property is stolen during a burglary. Home insurance also covers your civil liability, i.e. bodily injury or material damage that you may involuntarily cause to others, if for example you damage the property of your neighbors by accident,

In addition, be aware that after a covered loss that would require your temporary relocation, home insurance could also cover your additional living expenses. If you cannot stay at home during the repair work, then your additional expenses, such as your hotel stay and food (restaurant) expenses, would be covered.

Tip  : Some insurers, including Desjardins Insurance, offer you legal assistance and identity theft assistance when you combine your auto and home insurance. Don’t forget to ask for it when shopping for your insurance!

How to choose your insurance coverage?

Now that you know the importance of getting home insurance, the infallible question is this: how do you choose the amount of insurance coverage you really need?

Tip  : Take an inventory of your belongings to determine the approximate value of your possessions and establish the exact amount of your coverage. You can adjust your coverage accordingly. Also be sure to take photos of your belongings and keep your receipts. These precautions could facilitate settlement in the event of a claim.

Your insurance premium is determined by the type of home, the presence of fire hydrants or fire stations near your building, the history of claims for your home, the coverage chosen and the value of the property to be to assure.

Here are some of the steps that the Authority Des marches financiers suggests you follow to choose the right home  insurance , This link will open in a new window.:

1. Assess the total value of your possessions.
2. Choose your protections according to your owner profile.
3. Determine if you need additional protections according to the limits present in the contract for certain goods (example: a jewel of great value).
4. Determine if you need additional protection to cover certain exclusions (example: sewer backup).
5. Determine the amount of deductible you are willing to pay in the event of a claim.

Types of protection and coverage

Two types of protection for homeowners exist on the market.

Specified Perils Protection

This protection protects you against the risks named in the contract such as fire, theft, vandalism, damage caused by the wind or even certain damage caused by water.

Tip  : “Replacement Value” protection allows you to replace a damaged or stolen product with a new one, regardless of depreciation. For example, if your five-year-old computer is stolen, your insurer will reimburse the cost of a new computer of the same brand with similar characteristics.