Home insurance is exactly what it sounds like—a type of insurance that protects your property and its contents against damage, liability, and loss. While home insurance isn’t legally required, it is mandatory if you are financing your purchase. Lenders will require proof of insurance before approving your mortgage. Even if you’re buying outright, protecting such a significant investment is well worth considering.

Securing the right home insurance coverage at a reasonable cost can feel overwhelming, but understanding the basics can make the process easier. Here’s what every homeowner should know about home insurance.

Why and When Do You Need Home Insurance for Your Comox Valley Home?

Unlike auto insurance, home insurance isn’t government-mandated. However, lenders require it to protect their investment, and having coverage gives you peace of mind in case of unexpected events like burglary, on-site injuries, or storm damage.

Flooding is a common and costly issue, especially in finished basements where flooring and furniture may need replacement. Home insurance ensures you’re covered in such scenarios.

Your policy should take effect the day you take possession of your property. This protects you from liability if movers, contractors, or repair professionals are on-site. When searching for insurance, shop around and compare quotes, as insurers calculate premiums differently based on risk factors.

Your premium—the amount you pay annually or monthly for coverage—is determined by various factors, including your home’s size, location, construction materials, replacement costs, and any upgrades. Different insurance providers assess these factors differently, meaning two companies may offer significantly different rates for the same property.

Types of Home Insurance

The cost of your insurance depends on several factors, including the type of coverage you need. The three main categories of home insurance are:

• Home Insurance: Covers houses and their contents.
• Condo Insurance: Covers personal property, liability, and any improvements made to the unit.
• Tenant Insurance: Covers renters’ personal belongings and liability but not the structure itself.

Levels of Coverage

Once you determine the type of insurance you need, the next step is selecting a coverage level. The Insurance Bureau of Canada (IBC) outlines four common home insurance policies:

1. Comprehensive Coverage: Covers the building and its contents against all perils except those explicitly excluded. This is the most inclusive policy.
2. Basic Coverage: Covers only the risks specifically named in the policy. This is usually the least expensive option.
3. Broad Coverage: A middle-ground option that provides comprehensive coverage for the home itself but named-perils coverage for personal belongings.
4. No-Frills Coverage: Available for homes that don’t meet standard insurance requirements, such as those with significant structural issues.

Additional Considerations for your Comox Valley Home

Your home’s location affects coverage needs. If you live in a flood-prone or earthquake-prone area, you may need additional endorsements (optional coverage add-ons) for protection. Basic policies often exclude sewer backups or overland flooding, so adding these coverages can be crucial.

If you own high-value items like jewelry or art, check your policy limits. Many providers cap coverage on valuables at around $6,000. If your belongings exceed that amount, consider adding an endorsement for full protection.

How to Make a Claim

If an incident occurs, report it to your insurer as soon as possible. Document everything with photos, receipts, and notes. Keeping a detailed log of lost or damaged items can streamline the claims process.

You’ll need to pay a deductible—the amount you cover before the insurer steps in. Additionally, some providers require you to use approved contractors for repairs.

Keeping Your Insurance Up to Date

Updating your insurance provider about home renovations, home businesses, or significant purchases ensures you remain fully covered. Changes in property value, liability risks, or replacement costs can impact your policy. Failure to update your provider could lead to denied claims or insufficient coverage.

Ultimately, home insurance is about protecting your investment and providing financial security in case of unforeseen events. Working with an insurance broker and comparing multiple options can help you find the best coverage at the right price. Get in touch with me to learn more about insurance for your Comox Valley home!