Home Owner’s Insurance

When buying a home, one word you will hear often is “insurance.” As a homeowner you are concerned about protecting your house, your personal belongings and your personal liability. It is important that the coverage you choose provides the comprehensive protection that you need.



Why you may need home owner’s insurance

Home owner’s insurance may help protect you, your family members, your home and your contents against losses from natural hazards, such as fire, water damage, wind damage, tornadoes etc.  It will also cover  theft, liability and vandalism.  Additional coverage would include damage or injury to others that visit your property or if you have accidentally damaged someone else’s property.  If you find you are needing to rent a home or live in a hotel while damages are being repaired, home insurance may also help cover additional living expenses.

* Generally, earthquake and flood insurance are not included and need to be  purchased separately.



Condominium insurance

Condominium insurance covers loss and damage for the contents of your unit and your storage locker. It will also cover personal liability if someone gets injured in your unit.  And up to a certain amount, you would be covered for additional living expenses if you are required to live elsewhere while repairs are being made.

There will be a master insurance policy for the building and common areas.



Home-based business insurance

If you run a business from your home, you may want to consider additional insurance as home owner’s insurance generally won’t pay for claims related to a home-based business.  There may be limited coverage for business equipment or tools in your home, but home insurance will not cover equipment that is damaged while being used for business purposes.  It will also not cover equipment stolen or damaged from your home or vehicle if used for business or clients being injured while visiting you.



Types of Insurance and home insurance policies

It is important to understand what your home owner’s insurance covers and what you will need to pay if you make a claim.  Also ask questions to your insurance agent if there is something you don’t understand.

The coverage is the maximum amount of money your insurance company will pay if you make a claim.  Home owner insurance has 2 types of coverage.  Personal property coverage is protection for your home, personal items and your vehicle.   Liability coverage is protection against legal liability; when someone is injured visiting you or damage you cause to others property.

Insurance companies offer many types of policies.  Each offers different levels for coverage against damage and risk.   

Comprehensive, offers the most coverage.  Any risk to your home and contents (less exclusions named in your policy) is under the comprehensive policy.  Whereas a standard policy covers the risks to your home and contents that are specifically named in your policy.  

A broad policy is a combination of the two.  It offers coverage for all risks for your home (less exclusions) and for contents, it covers only what is named in the policy.  

The least amount of coverage is the no-frills policy.  This offers the very basic coverage for homes that don’t usually meet the standards for insurance.



Reducing Premiums

Premiums are the amounts you pay to buy insurance. And may be determined by the type of home you have, the materials your home is made of, the age of your home, the value of the property and contents you want insured, the crime rate in your area and any history of claims.

When purchasing homeowner’s insurance, there are ways of lowering your premium. Premiums will vary from insurance company to insurance company.  Be sure to ask for quotes and compare prices.

Most insurance companies offer discounts for smoke alarms, fire extinguishers, deadbolt locks, and whole-house alarm systems. If your home is fairly new, or if you elect to insure your automobiles with the same company, you may also receive a discount on your premium.

Another way of lowering your premium is to select as high a deductible as you can afford. Raising your deductible may reduce your premium.

You buy insurance hoping that you will never have to use it. Discuss with your Royal LePage Kelowna REALTOR® your unique needs and concerns when you purchase home owner’s insurance and whenever your needs change. 

The right insurance can give you a sense of security in knowing that you are adequately protected. For more information on Home owners’ insurance and packages please visit Capri Insurance.