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The terms home insurance and homeowners insurance are often used interchangeably, leaving Canadians to wonder, “are home insurance and homeowners insurance the same thing?” We’re pleased to inform you that yes, home insurance and homeowners insurance are the same. You might also hear the terms “property insurance” or “house insurance” used, and they are also the same as homeowners insurance. Now that we’ve cleared that up, let’s dive into what a homeowners insurance policy is all about.
What is homeowners insurance?
Now that you know homeowners insurance goes by many names, let’s clarify what home insurance actually is. Home insurance aims to safeguard one of the biggest (if not the biggest) purchases most Canadians will make in their lifetimes. The goal of any homeowners insurance policy is to protect one’s home and belongings from risk.
The specific risks it protects you from depends on the policy you choose but may include coverage against fires, theft, vandalism,, floods, third party bodily injury, third party property damage, loss of use, hurricanes, tornados, power outages, and more. As with any insurance policy, the policyholder must decide which coverage to include with their policy, as well as the coverage limits.
The coverage one chooses typically depends on several factors, like your budget, the location of your home, and your claims history. Though policies vary between homeowners and providers, typical home insurance policies include the types of coverage detailed below.
Comprehensive coverage
When comprehensive coverage is included in your homeowners’ insurance policy, you will likely be protected against losses and damages to your property.
Specifically, comprehensive coverage protects your home’s structure (dwelling), as well as other structures on your property, even if they are detached (such as a detached garage, shed, swimming pool, or gazebo). In addition, permanently installed outdoor equipment and materials or equipment stored for repairs or building extensions might also be covered.
Comprehensive coverage typically covers the repair or replacement costs of all structures and materials if the damage is caused by an insured peril.
Specified perils
Specified perils are the specific conditions in which you would be insured. Some of the most common perils included in homeowners insurance policies are fire, theft, vandalism, flooding, lightning, falling objects, collisions, and severe weather conditions.
Every policy is different, which means yours may not include all the aforementioned perils. Homeowners often have the choice of including the perils most relevant to them.
Personal Liability coverage
Personal liability coverage protects you from financial losses associated with third party bodily injuries or property damage that happen on your property. They can also protect homeowners from the costs incurred as a result of accidental injuries or if they are responsible for property damage to another person’s property.
Examples of situations in which personal liability coverage comes in handy are if a house guest slips and falls walking up the icy walkway to your home. With liability coverage, your insurance provider will help pay for any applicable medical expenses, property repairs, and legal or court fees.
Personal contents coverage
We’ve talked about homeowners insurance coverage that protects the structure of your home, but what about the belongings you hold near and dear to your heart? That’s where personal contents coverage comes in. Personal contents coverage protects the contents of your home, ranging from clothing and appliances to electronics and furniture.
If you have highly valuable items in your home, such as artwork, musical instruments, or jewellery, it is wise to include personal contents coverage with your home insurance policy. This way, if a thief ever breaks into your property, stealing any of these valuable items, your insurance company will help cover the costs.
Loss of use coverage
If your home is inhabitable due to an insured peril, loss of use coverage comes in handy. Under the loss of use portion of your homeowners’ insurance policy, your insurer may reimburse you for the cost of alternative living arrangements, such as a hotel, or the storage of your personal belongings. Policyholders can only claim this coverage if their home is uninhabitable due to a covered loss, such as a fire, or flood.
Medical coverage
Medical coverage is another type of coverage that may be included with your homeowners’ insurance policy. This type of coverage is under the personal liability portion of your policy. It covers the cost of medical expenses if a third party injures themselves on your property and requires medical attention.
With liability coverage, your insurance provider will help pay for any medical expenses not covered by the person’s health insurance policy, such as prescription medications, rehabilitation, or physical therapy.
Get in touch with BrokerLink for a free home insurance quote
If you want to learn more about home insurance coverage, get in touch with BrokerLink today.
Since 1991, we have helped thousands of Canadians find quality homeowners insurance policies. No matter the type of home you live in, whether you rent or own your property, the location of your home, or your claims history, we will find a policy for you.
Here at BrokerLink, our specialty is finding the most comprehensive coverage at the best rates.
BrokerLink is also pleased to offer free home insurance quotes to all Canadians. Contact us by phone, email, or in-person to request a free quote, or use our online tool and receive a complimentary quote.
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