As the name suggests, home insurance protects your home, and its contents, against various types of damage. Should your home or belongings suffer damage, your insurance policy can reimburse you up to the full cost of repairs or replacement. When purchasing a new home, you should research all available insurance options to ensure you get the best insurance for your property.
According to Canadian law, home insurance, also called property insurance, is not mandatory for your home. But, most lending institutions will require that you purchase a minimum level of home or property insurance before approving your mortgage. This protects the bank’s investment by ensuring you can afford to repair your home in case of catastrophic damage. (The bank may recommend mortgage insurance but it would be wise to study that further before signing anything.) In addition to protecting the value of your home, the insurance required by most lenders will also protect you from liability due to accidents on your property.
There are various types of home insurance policies. At a bare minimum, your insurance company will almost certainly insist on coverage that will pay up to the value of your home. Beyond that requirement, you will have flexibility in which of the following options you choose:
Getting insurance for your home is simple, especially if you take an advantage of an insurance broker who will do the shopping around for you to get you the best coverage at the best rate possible. Call Mitchell & Whale Insurance Brokers at 1-800-731-2228 or email us at email@example.com. We’d be happy to find the right home insurance for your needs.