Home Insurance – Named Perils

Named Perils Home Insurance

Owning a home these days is expensive enough and adding home insurance to the budget doesn’t make it any easier. But since your home is probably your biggest investment protecting it with basic home insurance is a smart decision, and is often required by mortgage lenders.

What Does Basic or Named Perils Home Insurance Cover?

In general, home insurance policies reimburse you for losses caused by named perils such as:

• Fire
• Theft
• Accidental damage such as a leaking toilet causing water damage

Your home itself and other structures on your property would be protected for these standard risks. Beyond this, you would have to specifically name any other risks or perils you want to have covered in your policy. For example, if you have inherited expensive items of jewelry, you need to list them specifically on your policy to protect them from theft or damage.

What are Named Perils?

If you’re concerned about your basement flooding due to sewers backing up, this is an option you can add to your policy since flooding is not usually covered by any type of home insurance.

Another example would be earthquakes; in Ontario, we are not at much risk for any significant earthquake occurring so this peril is not automatically included but can be added to your policy.

What if you are the proud owner of sports memorabilia or any other special collection? If it has a considerable value, you need to name it in your policy in order to protect it.

Are There Uninsurable Risks?

If your water pipes freeze during the winter and cause damage to your home, this would not be covered because it is considered to part of standard home maintenance and therefore preventable. Other examples of uninsurable risks or perils are:

• Animal or insect damage
• Pollution
• Water damage caused by a roof in poor condition; proper home maintenance is your responsibility

Coverage for Personal Liability

Basic home insurance policies also include a legal liability portion, which protects you in case of lawsuits. If you accidently hurt someone or if a visitor to your property slips and falls, this is when your liability coverage applies.

Save Money on Basic Home Insurance

Protect your home exactly as needed with basic home insurance. Our team insurance experts will get you some no-obligation quotes to make sure you save money too. Give us a call at Mitchell and Whale Insurance Brokers at 1-800-731-2228 or email us at info@mitchellwhale.com. We’d be glad to help you.