What You Need to Look for In Home Insurance Canada

  • home owners

Looking at home insurance products with the right mindset will allow you to make the right choice for your Canada home insurance coverage. It is a critically important product to have. A lot of people buy home insurance without being informed. It does not make sense to not make an informed decision for something as important as this.

The Basics of Home Insurance Companies in Canada

Before you learn what to look for in home insurance company you need to develop a better understanding of the companies who provide this type of product. This will allow you choose the Canadian Insurance Company that can best suit your needs.

How Is Home Insurance Sold?

Home Insurance can be sold through the following means;

  • Directly from the Insurance company providing the insurance
  • Through brokers who have created affiliations with various insurance companies
  • Through agents who represent one specific insurance company

What Regulations Govern the Home Insurance Companies in Canada?

Those that are dealing with an Insurance Company in Canada will be dealing with a Company that is governed by both levels of Government. It is these regulations that ensure that these Companies are going to honor valid claims made regarding their home insurance.  The Provincial government regulations oversee;

  • How these Companies conduct themselves in the industry
  • The way that rates are set for premiums
  • Brokers conduct
  • Sales Practices

Being as each province sets their regulations, it means that home insurance can differ in each province.

What You Need to Look For In Canadian Home Insurance Companies

You need to determine who you are dealing with when buying your insurance, i.e. directly with the company, a broker, or an agent

  • How long has the Insurance Company been doing business in Canada?
  • How their claims service operates. For example, is there 24/7 assess for submitting a claim?
  • What kind of feedback about their services is available.
  • What are their rates likes compared to similar companies?
  • What are their coverage options?
  • What kind of discounts are available?

Once you are satisfied with the answer to these questions, then you can change your focus specifically on what you need to look for in the home insurance product you are thinking of buying.

What to Look for in Home Insurance Policies in Canada

There are two approaches that you can take when reviewing home insurance products.

  1. Looking at the individual home insurance products then comparing these to your wants and needs.
  2. Determining what your wants and needs are for home insurance then seeking out insurance products that best meet these requirements.

Which Method is Better?

Either one will be helpful in helping you reach a decision.

Looking at the Individual Home Insurance Products

By going through the list of what the home insurance is going to cover you can check to mark the ones that are important to you and cross off the ones that are not. Then once you have gone through this exercise look at the list and see whether there are more checkmarks or cross offs. If there are more check marks, then the home insurance product being offered may be the best for you. If there is a lot of cross-offs, then you are going to be paying premiums for coverage that you do not feel are necessary.

Determining Your Wants and Needs then Shopping for the Right Insurance Coverage

The best way to determine what you want and needs are is to know what normally affects your home insurance, which are;

  • How much is it going to cost to replace your home?
  • Where do you live?
  • How close do you live to water?
  • Have you made home insurance claims before?
  • Is your home a newer home?
  • What is the plumbing comprised of?
  • What is the heating comprised of?
  • How old is the roof?
  • Is there a fireplace?
  • Is there a pool?

The answers to these questions will help determine what type of coverage you are going to need, but also give you a good idea of how much coverage in value you will want.

Think About the Three Major Components of Home Insurance

  1. Coverage for your dwellings and buildings
  2. Coverage for your home contents and personal property
  3. Liability coverage

If you focus on these three areas individually, you are much more likely to purchase the best home insurance product for you.

Your Options

One of the great things about home insurance in Canada is that you have options and you can mix and match these options to suit your needs.

You can buy basic ( No frills) home insurance

  • This is where the perils that are covered will be listed in the insurance coverage

You can buy comprehensive (Broad) home insurance

  • A more detailed insurance package that will cover all the perils excepts those named in the policy. Plus, there will be additional coverage that is not covered in the basics. Also, there may be increased amounts of coverage for those items covered in the basics.

You can buy basic home insurance

  • Then buy additional home insurance products t personalize your insurance

You can buy comprehensive home insurance

  • Then step it up a notch by buying additional coverage.

Taking it a Step Further

Once you have decided on the best home insurance for you, then you need to look at how you can save money on your premiums.

  • Make sure you are only buying the insurance you need
  • Look at the risks that your insurance company will be considering and see if you can reduce those risks
  • Do insurance comparisons. The best way to do this is by getting quotes then go through the shopping exercises as outlined.
  • Look at what the discounts are. But you can only determine if an insurance company is offering you good discounts if you know what the potential discounts are.

Potential Canada Home Insurance Discounts

  • Multi-line discounts
  • Bundling
  • Alarm system discounts
  • Deadbolt locks discounts
  • Loyalty discounts
  • Renewal discounts
  • Newer homes discounts
  • Smoke-free discounts
  • New customer discount
  • Mature client discount
  • Sewer back up discount
  • Claims-free discount
  • Flex discount
  • Professional discount
  • Gated community discount

This is a long list but even if only two or three of them apply to you then add up with the percentage of discounts that could help to reduce your premiums. If you are buying any other type of product and know you are going to get a 10% to 20% or more discount, then you automatically assume it is a good deal. Think about how much more this would be on an expense like home insurance.

Resources

http://assets.ibc.ca/Documents/Facts%20Book/Facts_Book/2018/IBC-Fact-Book-2018-Section1.pdf
https://www.insurancehunter.ca/blog/how-choose-home-insurance-coverage-canada
http://www.fsco.gov.on.ca/en/insurance/Licensing-Registration/Pages/default.aspx
https://www.surexdirect.com/newsroom/16-online-home-insurance-discounts-in-canada