Answering Your Home Insurance Questions

If you’re like most people, you don’t have questions about home insurance until you need to make a claim! But knowing some of these details now can save you money on your policy. So here are some answers to the home insurance questions we hear regularly.

What Does Homeowner’s Liability Insurance Cover?

Also called homeowner’s third party liability, this coverage protects you when someone else such as any visitor, a cleaning lady or a contractor gets injured at your home. Another important benefit of this part of your policy is that you are also protected from claims from a third party if you should accidentally cause them harm when you are away from home.

Why is There a Deductible?

Most types of insurance policies have a deductible and this is done deliberately to discourage all of us from making small claims. This makes sure there are sufficient funds available to pay out for larger claims when we really need the help. Deductibles usually start at $500 and can go much higher. If you are comfortable having a higher deductible, which means you pay more before your insurance pays the rest of a claim, then you can definitely lower your premiums and save money each month.

What are Acts of God?

These are various types of natural disasters that we cannot be expected to avoid or prevent from happening. Examples include storms such as hurricanes and tornadoes, which are usually covered in most policies but you may have to ask for coverage for damage due to hail or lightning. Another frequent question is about floods, which are not usually covered in standard policies but you can add it on for an additional cost. While we don’t get asked about earthquakes in Ontario very often, it is another example of a natural disaster not included in most policies without an earthquake endorsement.

What is a Home Valuation?

Some insurance companies will want to make a valuation of your home. This is not to determine its current value on the market, but to estimate how much it would cost to rebuild it. This will establish the replacement value and what coverage is needed to restore your home and other buildings on your property to their original condition if they were completely destroyed by a fire for example.

What are Exclusions?

There are a number of risks, also called ‘perils’, which are often specifically excluded from coverage in most home policies. Some examples are damage caused by the following:

• Ground water seepage
• Mould
• Frozen pipes
• Rodents and other animals
• Termites
• Some natural disasters or Acts of God as mentioned earlier

Another common exclusion pertains to expensive items such as:

• Jewelry
• Artwork
• Computer equipment
• Sports equipment
• Musical instruments

Be sure to ask about what is excluded from your home insurance policy in case you have any of these high-value items that may need special coverage.

Other Home Insurance Questions?

If you have any questions or concerns about your home insurance, our insurance experts would be happy to talk with you. Contact Mitchell & Whale Insurance Brokers at 1-800-731-2228 or email us at info@mitchellwhale.com.

Want to add to this story? Let us know in comments below! Mitchell & Whale is a fast-growing insurance brokerage in Ontario, striving to make insurance _not suck_ one customer at a time. Give us a call today to discuss any of your insurance needs at 1.800.731.2228.

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