What is homeowner’s insurance and why do you need one?

Homeowner insurance for an owner-occupant is a product offered by most reputable insurance brokers or insurers. If you own a home, you want to have the most advantageous home insurance available. You want it to meet your needs while being suited to your budget. Only insurance experts can help you find the best home insurance  that suits you: with a reasonable price and maximum protection.

What are the risks covered by home insurance?

Home insurance policies can vary significantly from one case to another, from one insurance company to another. Not only because of the price but also because the exclusions are not the same. It is important to be aware of the potential risks that apply to your real estate situation in order to get adequate coverage. Always ask questions to check if you are well insured, especially in cases of:

• natural disaster;
• Storm (winds of 100 km / h or more);
• Winds of less than 100 km / h but causing damage ( a fallen tree);
• Localized subsidence;
• Breakage of external equipment (ex: heat pump) due to frost;
• Theft;
• Vandalism (graffiti, pillage, etc.);
• Fire, water damage;
• Accidental damage (such as falling heavy objects inside your home);
• Damage caused by major work done to the structure of the home, renovations, expansion, etc.;
• Invasion by micro-organisms (insects, termites, molds, etc.);
• Alterations caused by rodents or poor maintenance.

Home insurance: which “coverage” to choose?

Ensuring a home is not to be taken lightly. The prices offered by your insurer are of course to be considered; it is not a marginal variable. However, it is also important to think about the type of home insurance obtained in exchange for your money. Home insurance is divided into two main classes: one with “designated risk insurance” and the other with “all-risk insurance”.

• Designated risks insurance. This type provides basic protection which is not without value and can be suitable for many homeowners. With this type of insurance, you are usually “covered” in the event of domestic accidents, common mischief and loss. Coverage for fire, theft, vandalism, water damage (with limitations) is also included. This type of insurance also allows you to be financially supported should a person suffer accidental damage (civil liability). Other options (riders) may be added at an additional cost.
• All-risk insurance. With this type of insurance, in addition to basic protection, you also get protection on risks that are not normally included due to lack of specific endorsements selected, for example, when you break the large glass of your solarium, you stain your wood floor that is not yet varnished, or you soil your entry in pavers by changing the oil of your motorcycle. Warning: this type of insurance is not “wall-to-wall”. Exclusions exist such as damage due to normal wear or a progressive effect (ex: water infiltration), or damage caused by war, a nuclear accident, etc. Check carefully what is included and excluded from your comprehensive home insurance. Damage resulting from earthquakes, tornadoes or diesel leaks, for example, may not be covered.

Personal property insurance for renters and owners

Yes, home insurance protects your personal property whether you own or rent. In the case of a property, the main building is covered, as are its outbuildings (garage, shed, etc.). All movable property therein, and the accidents which may occur there are covered. All-risk insurance is obviously more comprehensive.

In case of a rental, a home insurance is also required with regard to the movable property and the decor of the apartment. In the event of their deterioration or disappearance (fire, theft, vandalism …), the insurance will compensate you completely (“new value”), with the payment of the deductible established in the contract.

With regard to third-party liability, landlord and tenant are treated on an equal footing as part of a home insurance policy. It must therefore be assumed that any lessee may also be held liable for unintentional damage to others or property. You degrade the building, you cause water damage to the tenant below, a visitor slips on your wet floor, etc . These are all cases covered by a good home insurance policy.

Insure your home in case of absence (unoccupied or vacant dwelling)

Most home or property insurance policies include a clause (rider) specifically addressing the possibility that you are absent from your home for an extended period of time. This is the clause of vacancy.

In fact, and it is important to know, if there is a disaster in your home while you are on a trip or internship outside, for example, some coverage may be canceled. Be assured, this absence must be relatively long and continuous (between 30 and 90 days, depending on the insurer). Beyond the period specified in the contract, an insured person may receive no insurance benefits.

The clause of vacancy most often targets secondary residences, chalets, etc. The risks of burglary, vandalism or fire are higher as these buildings are often left unattended. If your vacancy in this type of home is frequent, cyclical and prolonged, it is worth having your insurance contract amended. The duration of the accommodation must be clearly stated.

Some insurers are reluctant to offer an insurance product to protect a property that is prone to being unoccupied. However, any withdrawal from the contractual clause of the contract is possible. An increase in the premium then applies.

However, brokers and direct insurers (financial institutions) that are part of the Home insurance industry are all able to offer insurance products that are right for you:

• Vacant building (s): you do not intend to live there;
• Unoccupied building (s) for a long period: you intend to live there anew;
• Building (s) occupied: cessation of protection

Are you a non-occupying homeowner (rental buildings)?

In other words, do you have one or more rental properties (that you do not live in)? If so, it is good to know that specific insurance products exist for you so that your wealth or investment is well protected.

As the owner of a residential rental building, it is essential to be properly insured. A “property insurance” will compensate you in the event of fire, theft and vandalism, damage or injury to others, visitors, public liability, etc.

A good “property insurance” also provides you with guarantees. In this way, you will be compensated in the following cases:

• The loss of rental income as a result of a tragedy;
• Damage to glass panes and windows;
• Damage to trees and landscaping;
• Accidental breakage of mechanical and electrical equipment;
• Damage to furniture and appliances lent to tenants;
• Breakage of machinery used for maintenance: lawn mower, snow removal tractor

Good “building insurance” has its advantages:

• Emergency service available at all times;
• Simplified agreement procedure in the event of a claim;
• Cost-effective premiums;
• Flexibility of payment: 12 installments without charge or interest; By check or by direct debit;
• Assistance to businesses 24 hours a day, 7 days a week.

What would be the best cost for your home insurance? Ask insurance brokers or insurers

Find protection tailored to your home, your buildings or your property thanks to Compare Insurances Online – Home Insurance.  Our web platform is easy to use, fast and free. It is like speaking with the best brokers and insurers in the market in order to get the most advantageous prices.

By filling out the form, your needs and budget are analyzed by one of our serious and competent insurer partners. Quickly, your quote for a home insurance policy will be sent to you. Our services are offered throughout Quebec.

Any insurance product is valid to the extent that it meets your needs and matches your situation. Whether it is for a designated risk insurance, for a comprehensive insurance or for any other specific options, doing business with certified and experienced experts in insurance remains highly recommended.

Compare Insurances Online – Home Insurance will put you in touch with such experts.  Many sectors and regions of Quebec are served by our service, including: