Homeowner’s Insurance

There’s truth to the old saying “A man’s (or woman’s) home is their castle.” And in days of old, castles were always well fortified. Below are some modern ways you can fortify your home against loss.

The Building

Are you insured to the correct coverage limits?
For the purpose of insuring a house, this limit must be calculated using an evaluator tool which the Insurer has agreed is acceptable

This value has little correlation to either real estate or property tax valuations

Will you have enough funds available to rebuild or repair your house in the event of a catastrophic loss? What if all the houses in your neighbourhood were damaged at the same time?

Does your home have special or unique features?
Does it have a swimming pool or hot tub? Does it have high end finishes like marble, hardwood, leaded glass, special appliances?

Does your current insurance policy have Guaranteed Replacement Cost?
This GRC provides you with Peace of Mind. As long as we use the approved evaluator tools and review these values regularly (usually every three years) to ensure they are in keeping with local construction costs, your Personal Lines insurer will pay the cost to rebuild, EVEN IF IT IS HIGHER THAN THE POLICY COVERAGE LIMIT

Outbuildings (sheds, etc)
This limit is generally a pre-determined percentage of the building limit (10%)

Additional Living Expenses
This limit is generally a pre-determined percentage of the building limit (20%-30%)

If your house is unlivable, you probably still have to pay your mortgage, can you afford to also pay rent?

The Contents

The limit on the value of insurance for contents is generally a pre-determined percentage of the building limit (60%-70%)

Do you have dependent children attending a university or college? If so, their possessions will be covered by your personal insurance policy even if they are not living at home.

Special contents
Do you have special contents which require specific insurance? Bicycles are a good example. Most policies limit coverage to $500, and the coverage is subject to the policy deductible. For an additional premium (based on the value) you can increase this limit, and lower or eliminate your deductible

Jewelry
Most policies limit coverage to a specific dollar amount (generally between $3,000 and $6,000), and the coverage is subject to the policy deductible. For an additional premium (based on the value – which must be supported by an appraisal) you can increase this limit, and lower or eliminate your deductible

Furs
Coverage limits vary by policy

Collectibles
Coverage limits apply, other restrictions may apply. Do you know what your policy covers?

Business Contents

Do you have any property related to a business? Did you know that the coverage for this property is generally quite restrictive?

Boats/Yachts

Most Personal Lines policies have some provisions for the ownership of watercraft. However, there are limitations as to size, usage, horsepower, area of operation.

Single Limit Policies available

These help protect you when one of your coverage limits automatically provided is a bit too low, or extraneous (ie: you have no outbuildings, but it would be very expensive to rent in your area)

Optional Earthquake coverage

We always recommend earthquake coverage because:

• February 27, 2010: 8.8 Earthquake in Chile – estimated loss $8-$12 BILLION
• September 4, 2010: 7.0 Earthquake in New Zealand – estimated loss $2-$4.5 BILLION

Use/Liability coverage

Your home liability policy covers you on and off your premises for your personal negligence; however, it assumes you are simply acting as a homeowner. If you use your home in other capacities, such as the ones below, you may benefit from additional coverage.

Do you have a home based business? Does your Insurer know?

Do you have clients on the premises? You may need a business policy to cover this liability exposure.

Do you do consulting or internet work? You may need a Professional Liability policy in place.

Course of Construction
This insurance protects you during the process of building a house for your personal use

Permission to Renovate
Are you undertaking a substantial renovation? Policies may limit or exclude coverage resulting from ongoing renovations.