Home Insurance Policies

If you are looking for a standard home insurance policy, remember that nothing as such exists anywhere, as home insurance polices will obviously vary from one insurance company to another. As the home insurance coverage offered by one insurer is likely to differ from what is being offered by another, it is essential that you ask your insurance representative to put the policy in plain words for your comprehension before you consent to the indemnity.

Usually, all home owner insurance policies offer indemnity for the building you reside in as well as all the things inside it. However, if you are residing in a condominium, the insurance policy will only cover the contents of the dwelling and not the dwelling itself, as you do not own the building. Generally speaking, all insurance policies can be grouped under three broad categories - Named Perils, Broad and Comprehensive. A brief discussion regarding each of these insurance categories is presented below.

Named Perils
All insurance policies coming under this category offers indemnity on your house, i.e. the physical building, as well as all its contents for any kind of straight undoing or damage resulted by explicit 'perils' or hazards/ calamities such as hail, windstorm, lightning, any particular kind of damage by water and even burglary. However, in order to receive the compensation for these 'perils' it is essential that they are specifically stated in your home insurance policy. Although this category of insurance policy is the least expensive, they are also considered to be the most hazardous policy.
While insurance policies in this category offer indemnity on 'all risks' related to your home or the physical building, as far as the contents or belongings of the home is concerned, you are required to spell out the 'Named Perils'. The term 'all risks' stated in the insurance policy denotes insurance coverage of the home against all the losses and/or damages due to an assortment of causes. In other words, the term 'all risks' may be interpreted as indemnity of your home for any harm virtually owing to any and all reasons. In this case, you need not list each and all the perils like lightning, fire, and calamity and so on, but the insurance policy will automatically cover all losses and damages to your dwelling against any type of risk, provided any of them are purposely kept out of the insurance policy.
Insurance policies falling under this category offers indemnity to your home, i.e. the physical building, as well as all its contents against any and all kinds of risks. In other words, this category of insurance policy offers complete protection to your dwelling and all its contents irrespective of the type of damage or loss due to any reason. Hence, it is needless to mention that this category of insurance police is the costliest.

It is important to note that insurance policies in any of the above mentioned general categories may include specific phrasing as well as indemnity with one insurer, but be different in the case of another. In addition, different insurers may also have different names for these categories, depending on precise products offered by an insurance company. The insurance business has been increasingly becoming competitive every where and private insurance firms all over Canada try to win your business directly through their employed agents or via self-governing insurance brokers. The competition among these private insurance companies is not only confined to the price, but also includes the services they offer as well as the indemnity provided by them respectively.

When you venture out to seek the home insurance policy of your preference, you will find that many of the insurance terms and ideas will perplex you. Hence, it is important for you to ensure the type of insurance policy you are purchasing as well as whether the policy is providing you the kind of indemnity you require and are looking for.

While shopping for a home insurance policy, it is very natural for you to ask what items or issues are not being covered by the insurance policy you are planning to purchase. It is very likely that you would want to cover many additional areas that are not included in the insurance policy the insurer or insurance agent is offering you. In order to help you overcome your dilemma and problems, the Insurance Bureau of Canada website has compiled all information and data regarding insurance policies for your home.

It may be mentioned here that an insurance broker is able to take care of all your insurance coverage needs, including everything from your life, property and your car. It is essential to have property insurance in order to avail banks loans for your mortgage needs as your property will serve as collateral for the loan you will be trying to obtain.

In fact, all property insurances provide you indemnity regarding the replacement cost of your home. Usually, this cost covers the structure of the house/ physical building and not the foundation or the value of the land on which the building is constructed. You will be surprised to note that your insurance policy will not be providing coverage for the total sum you had paid for your home.

The amount of money you pay each time towards the home insurance coverage actually depends on the value of your home. In other words, the premium or insurance fee is directly related to the worth/ market value of the physical building.

There may be instances, when your lender will also propose that you purchase a mortgage life insurance. Most of the times, the mortgage life insurance can also be purchased from your lender, who will be adding the premium or insurance fees to the regular or periodic mortgage payments made by you. The advantage of buying a mortgage insurance payment is that in the case you or your spouse meet with an untimely death, the insurance company will pay the entire outstanding mortgage amount.

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