Home Insurance: The Basics & The Need-to-Know

Home Insurance: The Basics & The Need-to-Know

Every homeowner, landlord, or individual in the process of building their own home wishes to live there a long time and make good memories. They wish for it to stand strong and brave the worst of the elements. However, wishful expectations are not guaranteed, and reality might be more cruel. Some unexpected occurrences might be within your capacity to handle, while others might not. Home insurance is your protective shield against the latter.

Brief Intro to Home Insurance

Home insurance is an insurance policy that helps the homeowner (the insured) cover all or part of the cost for damages to a building's exterior or interior. The damage in question may be human-made events like theft and fire outbreaks or natural disasters like earthquakes. Sometimes, home insurance companies would replace the building's damaged parts themselves rather than foot the bill towards the repair costs. But, this is all dependent on the terms stated in the insurance policy.

With the plethora of insurance companies out there, it would be hard searching for a company that perfectly fits your needs. However, we have got a compendium of trustworthy insurance companies that you can try. Reviews about insurance companies are also available on our website and are written by individuals who have visited these insurance providers or utilized their services at some point in time. These reviews give you an insider's perspective on some of the insurance companies near you, the efficiency of their services, and personal opinions on the services received.

Home Insurance Coverage

Although it has been established that home insurance covers the cost of damages caused by fires, thefts, lightning strikes, and other natural disasters, the method for accomplishing this differs. There are three typical methods:

  • The typical cost for a replacement
    When your couch gets stolen or your roof burns down in a freak fire accident, what the home insurance covers is basically the cost of buying another couch or the cost of repairing the damages to the roof.
  • The real worth in cash
    Home insurance coverage might also come in the form of a cash amount to get a replacement, the depreciation not included. This means if your 3-year-old television set gets stolen, your home insurance company will compensate for the value of that specific 3-year-old television.
  • The costs for an extended replacement
    This is a case where the home insurance company has to pay more than what your insurance actually covers due to the costs for the repairs or replacements experiencing a spike. However, the limit to which they can actually pay is dependent on their policy limit.

Average Home Insurance Cost

The average cost for a home insurance policy is always relative to a variety of factors. This includes;

  • The location of your home - an area with a high crime rate, means you get to pay more.
  • The age of the building.
  • The type of pipes you have got running in the house.
  • If any renovations were done in any parts of the house, etc.

In Canada, the average cost for a home insurance policy is $840 annually. As we stated above, this cost depends on various factors, which means it could be higher or lower. If you have taken all the essential aspects into account, you can look at the reviews of some home insurance companies to see how their efficacy, price, and other factors compare.

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