Why do I need Home Insurance?
Posted on: 06 January 2017 by Lenard Johnson
Your home is your biggest financial and most emotional investment.
Yet it is also vulnerable to burglary or vandalism, natural disasters, and liability from damage inflicted on the property. In order to protect your home from any kind of financial risk, you can choose to buy the homeowners insurance or contact professional home insurance broker to help you in this case.
Minimum Hazard Insurance
The term usually varies from region to region, but all mortgage lenders in Canada require people buying a house to get insurance, especially home insurance in Toronto. This basic level usually consists of property damage from fire/hail/wind or theft, though it may include anything that is required by the home lender.
Multiple Lines of Coverage
Home insurances required by the lenders often protect your home from outside damages and in fact protect only the building, while your property inside the house remains uncovered. That is why it is always highly recommended to explore and purchase home insurance which would cover multiple lines of damage or liability.
Most standard home insurances cover personal liability for damage that others might do to your property. If a gardener or a utility worker has been bitten by a dog and got some injures, a liability line of your insurance would cover his medical bills and other damage.
Personal Property Insurance
This type of home insurance is very useful if you want to protect your personal property within the house from theft or natural disaster. In case you are interested in this, treat this issue very seriously. Generally, standard lenders’ insurance does not include personal property. So if purchasing any personal property policies, make your own inventory of all your personal property inside the house and have a copy of that list outside of your home.
Tips on Saving Costs
The price for insurance is getting higher and higher every day, so homeowners are tempted to cut costs. Here they drop some lines of insurance or reduce the amount of already purchased policies. If you faced such a situation, stop and think about the strategy. You might find a more effective way to reduce the premiums while getting an adequate level of coverage.
Today many people reduce the real cost of their house to save money on home insurances. Homeowners insurance has to cover the cost of reconstructing the home, however, it will in reality cost much more than the current lowered value of the home. In case you decided to reduce the policy to match the drop in real estate value then your insurance will not cover the cost of your damaged home in case of any problems. In fact, such actions only increase the deductible.
Moreover, today people all over the world cancel their flood insurance. Before doing so, think twice. Insurance Information Institute claims that 25% of flood losses occur in the areas with low flood risk. If you live in a high flood risk area then flood insurance is a necessity for you. For low risk homes, explore strategies to mitigate the effects of flooding.
Jay Manning – consultant in an insurance company about the Internet resource aiming to help people choosing their first home insurance in Toronto.
Guthrie Insurance Brokers Ltd
505 Consumers Rd