What is home insurance?
In Canada, home insurance helps protect your home & your belongings in case of theft, loss or damage. It could also cover additional living expenses if you are temporarily unable to live in your home. You are not legally obligated to have home insurance if you own your home outright,though a mortgage lender will require you to purchase it before the closing date when buying a new home.Although you are not legally obligated to have tenants insurance as a renter, many landlords make it a condition in the rental agreement.
Do you know what your home insurance policy should cover? (depending on the policy)
- Personal property: If your home is damaged by anything covered by your policy, did you know your personal property is also covered?
- Your personal property is also covered when you travel.
- Personal property stolen from your car: Any personal items stolen from your car are covered by your home insurance.
- Liability: Home insurance includes liability insurance. If someone is injured in your home and takes action, liability insurance provides coverage. This insurance can extend to some you are responsible for injuring, even if it didn’t happen in your home.
- Accidental damage to someone else’s property.
- Some home insurance policies may also cover you for liability against any cyberbullying that originates from your property.
Here are some things that your home insurance may not cover.
Generally, home insurance won’t protect you from predictable events such as:
- wear & tear
- an issue due to lack of maintenance
- anything that is not specifically listed
- home-sharing activities (Air BNB) will require separate insurance
- if criminal activity is involved
- if you are using your home for business purposes
These are things you need to disclose to your insurance agent to make sure you have the coverage you need.
Do I need condo insurance?
Condo insurance is virtually the same as home insurance. It protects the inside of your unit and storage locker. The Condominium’s insurance covers the outside of the building and common areas. The condo’s insurance should also cover damage to your unit & personal belongings AND damage to other units by something that has happened in your unit. **Some condos cover parking spots, but it’s worth it to look into your condo’s specific policy.
I’m renting, do I really need tenant insurance?
Although you are not legally obligated to get tenant insurance, it may be a condition of your rental agreement.
When shopping for home insurance, whether it be for a house, condo or as a renter, compare policies carefully so you understand what is covered and what is not. Discuss your needs with an insurance agent or broker, so that you get the insurance that best protects your circumstances.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative or insurance representative.
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