You probably know home insurance is a smart idea. But if you’ve never purchased a plan — or read your current plan carefully — you may be wondering how coverage actually works. As they say, there is no point in asking silly questions. In fact, when it comes to home insurance, some common questions arise from long-standing misunderstandings.
- Am I Protected from Natural Disasters?
Contrary to popular belief, there are no “Acts of God” exceptions — at least not in Canada. But that does not mean everything is covered by home insurance. Many plans usually eliminate flood damage, sewer backup, and earthquakes, but you can purchase additional protection.
So, although you may be protected from forest fires or hail, but probably not on other occasions. Check the language in your plan or talk to your insurance representative for information.
- Will My Plan Be Cheaper If My House Is Old?
Finally, older homes may be more expensive to insure compared to newer developments. That’s because older homes have older components and frames. There is the possibility of greater damage which of course will lead to an insurance claim. Also, homes with older HVAC and plumbing systems may not meet current safety requirements.
- What About My Points? Are They Protected?
Your home insurance usually covers your property. But unusual or valuable items may need extra protection. So if you have family heirlooms, expensive vintage collectibles, or other items, you may want to purchase the included insurance. In fact, you may notice that certain items of this kind are covered for a limited amount in your home insurance coverage.
- Can I Manage with Basic Coverage?
No one can force you to buy more insurance past the fundamental plan. But you may lose out when the time comes to get an insurance claim. Along with covered perils – these are described as “hazards” in your plan – have a look at the money limit for your claims and insurance deductions. If you don’t have enough insurance, you may need to pay a fee for a sizable loss.
- What is Liability Liability?
Liability coverage is a standard component of a home insurance policy; it provides protection if someone is accidentally injured in your home and sues you. However, it is not used if you do a deliberate act that harms someone. However, it is used if a site visitor is injured by your pet.
- Suppose I want to take a long vacation?
Your insurance provider needs to know about a long absence from your home. You must take certain precautions to ensure there is no additional danger of no one living there. Your insurance company may recommend that someone take a look at your home every few days in a purchase to keep the points safe.
- Suppose I’m Not Keeping Up with Maintenance?
As a property owner, you are required to carry out routine maintenance. Otherwise, your insurance company may choose not to pay for the damage incurred as a result. Keep a document of what you have done to keep your home healthy.