A comprehensive guide on finding the best home insurance

Home insurance

Climate change has changed the way homeowners look at home insurance. They are starting to see the importance of protecting themselves against catastrophic losses. This is due to the severe weather disturbances happening all across the country.

So, if you are about to become a homeowner yourself, you might like to look into getting home insurance. Understand what it is about and decide what is best for your needs. Let the guide below help you out.

Close-up Of A Human Hand Stopping The Wooden Blocks From Falling On House Model

What is Home Insurance

Home insurance protects your home against any damages or loss. It is not mandatory to get this kind of insurance in Canada. But, lenders will only release your mortgage funds if you have a home insurance policy.

This policy covers your entire property, house structure, and everything inside. It also covers any injury that may happen to someone while inside your home or property.

What Does Home Insurance Cover

The usual circumstances covered by home insurance include:

  • Loss or damage of your home’s structure
  • Loss, theft, or damage of your belongings
  • Injury or damage to guests and other individuals while inside your property or home
  • Accidental damage you may cause to your neighbor’s property
  • Theft of personal property taken from inside your vehicle

Insurance companies also refer to home insurance as property and casualty insurance. This type of insurance includes insurance for your car and business as well as disasters.

Home insurance policies cover everyone living inside your home. If you have someone living with you, notify your insurance company about it. Your insurer will amend your policy to cover this person as well.

What are the types of Home Insurance Coverage

Before knowing the types of coverages, you must understand everything about coverage. It is the most you will get when you file a claim for a loss or damage to your home

There are two kinds of coverage that you will need for your home insurance. These are:

Personal Property Coverage

It covers damage or loss to your home, belongings, and vehicle. Know the kind of coverage you need and its corresponding amount. Do this by making a checklist of all your belongings. It should contain the following:

  • Photos of your possessions
  • Receipts, especially for primary items like your car or household appliances
  • Replacement value of items
  • Make, model, and serial numbers of items

This information can be of use in case you need to file a claim.

Liability Coverage

It protects you against any damages to other people while inside your property. It could include injuries and damages to your neighbor’s property.

What are the different kinds of Home Insurance Policies


Insurance companies offer a wide range of home insurance policies. They come with different coverages against various causes of damages and risks.

These policies are different, depending on the insurance carrier. As such, it is wise to shop around before deciding on the best home insurance that will meet your needs.

Below are the types of home insurances policies available:

Standard

This type of policy protects your home and belongings according to the stipulations in your policy. It is also known as the basic or perils policy. So, if your policy covers damages caused by a fire, but not by flooding, then you can only claim for the former.

Comprehensive

This policy will give you the most coverage. It protects your home and its contents against all risks. But, these do not include the exclusions listed in your policy.

Insurers also refer to this as the all-perils or special policy. For example, this policy states an earthquake as an exclusion. Then you will not have coverage for damages caused by such an event.

Broad

It is also known as a broad-form policy. It provides coverage that is a cross between standard and comprehensive policies.

For your home alone, this policy may cover all risks, except the exclusions. It is the same as a comprehensive policy. Meanwhile, it will only cover all listed risks for your belongings. It is like that of a standard policy.

No-Frills

This policy can only give you minimal coverage. It offers basic coverage for homes that do not go with typical insurance standards.

Close up real estate agent with house model hand putting signing contract, have a contract in place to protect it, signing of modest agreements form in office.Concept real estate, moving home or renting property.Image source: istockphoto.com

What are the things to consider in getting home insurance

Always read the fine print

Go through your policy to understand your coverage, exclusions, and insured perils. Also, look into the terms and conditions. A good insurance broker like BrokerLink will help with everything in your policy.

Be ready for disasters

Make sure that your home and your insurance policy are ready for any kind of disaster. Climate change has been causing severe weather events. These, in turn, led to increased numbers of property repairs. These events include windstorms, wildfires, and hailstorms. 

The most recent hailstorm in Canada happened in Calgary on June 13 last year. It incurred an estimated $1.2 billion in damages. So, be sure to protect your home and property from this kind of event.

Be cautious about over-insurance

Get a policy that covers the replacement value of your home and not its actual cash value (ACV). Your home’s ACV includes the land or property where your house sits. Replacement of this lot or property will not happen as it remains even after a catastrophic loss. The size of your lot will increase its market value. So, if the cost of rebuilding your home is lesser than its value, then you are overpaying for your insurance.

Include all your assets in your coverage

Do not forget to list down everything inside your home. Go room by room and provide descriptions of every item. Also, include photos and receipts, especially for costly items. Store this information in a safe or in the Cloud.

Do not forget flood insurance

Do not overlook this coverage for your home insurance. Severe weather events like the 2020 hailstorm in Calgary can cause flooding. This kind of catastrophe can lead to significant damages or loss. So, it is best if you prepare for it, regardless of your location.


Aside from everything mentioned above, there is still a lot to learn about home insurance. Find a broker that can assist you in understanding more about it. Good insurance brokers will help you find the right home insurance for your needs.

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