You’re preparing to purchase a home in Ontario. Congratulations on such a huge step! Because this is likely one of the largest purchases you’ll ever make, you’ll want to be sure that you’re safe and protected. That’s where home insurance comes in!
Home insurance helps protect you in case of an accident—and there are many different policies you can choose from. We’ll help answer a few of your most frequently asked questions.
The Basics of Ontario Home Insurance
Although no, you’re not required to have home insurance by law, it is definitely recommended (and a lot of the time absolutely necessary!) that you purchase home insurance for your property. The fact is, mortgage lenders and banks usually prevent you from completing the purchase on your new dream home if you do not also have insurance.
This not only applies to houses, but to condos as well. You may not be able to rent a condo without tenant insurance. This is dependent on the landlord or the condo complex you’re renting from. It’s important to note that condo building insurance covers the actual building and its amenities, and is included in a monthly fee for the tenant. Condo insurance is the home insurance equivalent, covering damages within the unit itself. If you are renting the unit, then you would be purchasing tenant insurance.
Coverage for home insurance depends on a variety of factors, including home type, home size, location, special home features, and more. As well, policies range from standard coverage to more comprehensive coverage, and this is reflected in the price.
What Home Insurance Covers
The purpose of home insurance is to protect you and your home, from natural disasters (such as a windstorm or lightning), accidents (such as falling objects), or theft. “Insured perils” are outlined in each policy (so these can differ!) and are what is covered in the most basic insurance package.
Should you wish to, you can also purchase additional coverage. For example, floods are not covered by standard home insurance, and can cause a lot of costly damages to your home. Flooding in Ontario can happen any time of year, as a result of a number of factors, including snow melting, rising lake levels, or heavy rain.
What To Be Aware Of
Be aware that there are some things that can impact your home insurance coverage. When purchasing your policy, familiarize yourself with the activities that, should anything happen, would make your coverage inapplicable. Uninsured activities include criminal activity or damages due to home-sharing (turning your home into an Airbnb).
Similarly, not maintaining good upkeep of your home, making extensive and dangerous renovations, or running a home business are all reasons why your coverage (in the event of an accident) could be denied.
You can purchase additional coverage if you have specific valuables in your home you would like protected.
With many different options, it’s always important to know just what is covered, what fees you’ll be paying, and what situations would render your coverage void. Be sure to choose the policy that is right for you!
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