The single most valuable possession for most people is their home. Major disasters can and do happen from time to time, like an earthquake or a fire, do you have protection for these circumstances? How long has it been since you went over the details in your home insurance policy? Each year, you should visit your insurance provider to make sure that your coverage is adequate. Many times, a homeowner has a different situation later than they did when they first got the policy, and each year it should be reviewed.
There are two main kinds of home insurance plans:
First are named perils: These are loss or damage caused by things like lightening, explosion, fire, falling objects, impact from vehicles, theft, water damage, and hail for some examples. Your insurance policy only covers you for the types of damage that it lists in the policy.
Second is Comprehensive: What it means is that there are a few specific exceptions, but everything else is covered. Not usually included are things like damage from an act of war or terrorism, landslides, and snow slides for examples. Even with the exclusions, comprehensive policies provide you with the best protection and you shouldn't settle for less.
There are a few crucial aspects of your policy that you should review:
Building replacement guarantee: When this is included in your policy, your home would be rebuilt, even if it goes beyond your policy limit, when damages are that severe. There are many reasons that the cost to rebuild may be more than the amount that you are insured for, such as market fluctuations and a catastrophe such as an earthquake or a wildfire.
Earthquake coverage: There are usually additions that insurance policies have that will allow for extra protection in case of earthquakes. It is a good idea to get earthquake coverage, since there is no telling when and where an event like this will happen.
Broad water damage insurance: There are types of coverage that are specifically for water damage, and most policies have these. Sewer backup is usually not included in this for example, but it can be included if the homeowner would like to add it to the policy.
Building bylaw protection: After a major damage occurs and the home needs to be rebuilt, the process must be done according to the most recent building regulations. There are changes that happen over time to bylaws, and if this is the case in your area, it could make the cost of even partially rebuilding the home to be more than expected. The homeowner must pay for the increase in cost, unless this is specifically covered in your insurance policy. Many people forget to get coverage such as this. The cost difference could be many thousands, that come out of the homeowner's pocket.
Specialty property protection: Coverage for specialty items that the policy holder may or may not have is part of many home insurance policies. These items include sporting equipment, bicycles, computers, cell phones, jewelry, furs, silverware, and collectible items.
Something to keep in mind for condo owners: The strata itself typically has insurance, but there are certain kinds of damage that are not covered, and property deductible assessments, damage assessments, and liability damage assessments can be the responsibility of the condo owners themselves.
There are two main kinds of home insurance plans:
First are named perils: These are loss or damage caused by things like lightening, explosion, fire, falling objects, impact from vehicles, theft, water damage, and hail for some examples. Your insurance policy only covers you for the types of damage that it lists in the policy.
Second is Comprehensive: What it means is that there are a few specific exceptions, but everything else is covered. Not usually included are things like damage from an act of war or terrorism, landslides, and snow slides for examples. Even with the exclusions, comprehensive policies provide you with the best protection and you shouldn't settle for less.
There are a few crucial aspects of your policy that you should review:
Building replacement guarantee: When this is included in your policy, your home would be rebuilt, even if it goes beyond your policy limit, when damages are that severe. There are many reasons that the cost to rebuild may be more than the amount that you are insured for, such as market fluctuations and a catastrophe such as an earthquake or a wildfire.
Earthquake coverage: There are usually additions that insurance policies have that will allow for extra protection in case of earthquakes. It is a good idea to get earthquake coverage, since there is no telling when and where an event like this will happen.
Broad water damage insurance: There are types of coverage that are specifically for water damage, and most policies have these. Sewer backup is usually not included in this for example, but it can be included if the homeowner would like to add it to the policy.
Building bylaw protection: After a major damage occurs and the home needs to be rebuilt, the process must be done according to the most recent building regulations. There are changes that happen over time to bylaws, and if this is the case in your area, it could make the cost of even partially rebuilding the home to be more than expected. The homeowner must pay for the increase in cost, unless this is specifically covered in your insurance policy. Many people forget to get coverage such as this. The cost difference could be many thousands, that come out of the homeowner's pocket.
Specialty property protection: Coverage for specialty items that the policy holder may or may not have is part of many home insurance policies. These items include sporting equipment, bicycles, computers, cell phones, jewelry, furs, silverware, and collectible items.
Something to keep in mind for condo owners: The strata itself typically has insurance, but there are certain kinds of damage that are not covered, and property deductible assessments, damage assessments, and liability damage assessments can be the responsibility of the condo owners themselves.
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