Why is it so important to buy home insurance in Beaumont?
Whether it's your most valued asset or not, your home is definitely up there when it comes to the more expensive of assets. Beyond being a roof over your head, it may very well be the place where you raised your kids, the first home you shared with your partner, and the place where you hit many big life milestones. Protecting your physical property is perhaps one of the most important aspects of home insurance. Beaumont residents likely want the financial security that a comprehensive insurance policy can provide, whether or not it's required.
And, on the topic of being required, the bulk of mortgage companies and financial institutions will ask that you purchase home insurance as part of your loan agreement. It is not required to purchase insurance for your property in Alberta. Home insurance is only typically "required" when it's asked of you by a lender, as they want to protect their own asset.
Similar to tenant's insurance as well, home insurance protects your personal belongings. This extends to all your home's furniture, your electronics, clothes, appliances, and so forth. Your personal belongings are likely worth quite a lot just on their own, and their potential loss in the event of a natural disaster is not something you want to gamble with.
Common perils that standard Beaumont home insurance can include
No matter where you live, be it in Beaumont or an entirely different place in the world, your home will be exposed to certain perils. Those perils may vary by location, i.e., some homes may be at different risk of flooding, heavy snow, or wildfire, so it's important to understand which perils your home is insured for and what level of coverage you may need.
The following list includes a description of some of the most common perils that the standard home insurance policy may cover you for:
Theft and vandalism
Although we like to assume the best from people, there are criminals out there who only see your home as a potential target. Break-ins can range in damages, from broken glass and a few stolen items of jewelry, to wide-scale damages and vandalism. Most standard policies will cover damages caused by theft or vandalism.
No one likes to think about fires, but unfortunately their risk is very real. Homeowners insurance almost always includes coverage for fires, and fire was one of the first reasons insurance became so popular. While the general population's risk for fire is much lower than it was decades ago when home systems were much less reliable, the risk is still very real. Luckily, home insurance can cover the repair costs for residential fire.
Lightning and storms
Lightning strikes are extremely rare, but they do have the potential to cause tremendous damages to your home. Solar panels may be damaged by lightning strikes, as the extreme heat from strikes can melt your circuitry - and even the panels themselves. Storms can also bring about hail, they can knock over trees, and cause intense rainfall. Most home policies will cover natural disasters, like lightning and storms.
Again, it's a rarity, but a car or even aircraft hitting your home can very well devastate your property's entire structure. Many policies will include coverage for car or aircraft impact, including the cost to repair or even restore your home following such an event.
What does my Beaumont home insurance policy cover?
Home insurance in Beaumont is not mandated. It is not mandated anywhere in Alberta, either, meaning there is no technical standard to what it may or may not cover. As such, each insurance company provides different offerings, different opportunities, and different coverage(s). To help you better understand what your policy may include, we've compiled a list of what a policy will typically insure:
Your home's structure, or the "dwelling," is probably the most important aspect of your home. Without it, there wouldn't be - well, a home. Dwelling insurance coverage extends to any private structures as well, whether they are detached or attached, such as garages, sheds, fencing, signage, pools, etc. If your home were damaged due to any of the following perils, your insurance company may cover you for the repairs:
- Car/aircraft impact
- Falling objects
Your personal property encompasses all the furniture that you own, any appliances, electronics, clothing, sporting equipment, and valuables. Your home insurance coverage extends to insuring your personal belongings as well, up until a specific limit. Certain items, particularly items of a high-value, may need added coverage to be included in your home policy. This added coverage is typically referred to as a jewellery rider or "floater".
Last, but certainly not least on the list, is liability coverage. The liability portion of your insurance is critical to insuring you for any injuries or damages you may be held liable for as a result of an accident that occurred on your property, or as a result of your actions anywhere in the world. Claims resulting from accidents like dog bites can quickly rack into the tens of thousands of dollars and are certainly not costs you want to be paying for out-of-pocket.
What does my Beaumont homeowners insurance not cover?
Just as your homeowners insurance may cover a wide variety of perils and aspects of your home, it will also have exclusions. Some exclusions are due to the fact that a certain risk is too high to accept, and some are simply because the exclusions don't fall under the definition of "accidental" or "unexpected." Remember: insurance is designed to cover unexpected events, not probable issues or the gradual buildup of problems in your home.
Always ensure to familiarize yourself with what your coverage specifically excludes, so there aren't any surprises come the time to make a claim.
Below, we have listed some samplings of what your insurance policy may exclude:
Various insurance companies will never agree to provide protection for certain perils, whether because they are too great of a threat (such as the risk of a flood while your home is built on a flood plane) or because the perils do not fall under the definition of accidental/sudden.
Lack of maintenance
Even as a policyholder, our customers are always expected to look after their home and take care of it, doing preventative maintenance to mitigate the risk of issues. Homeowners are also responsible for doing routine inspections, services, and tackling smaller issues before they worsen. Any damages caused by lack of maintenance may not be covered.
If you just work occasionally from home, odds are that you won't have to worry about voiding your insurance. However, if you run a full-scale business out of home, like a daycare, or you work as someone who uses business equipment and has clients come visit your home, you may need to inform your broker to ask about acquiring a commercial policy. Your home insurance will not cover losses if they can be traced back to your business.
Insurance companies all define home vacancy very differently. Being unoccupied isn't the same as being vacant. Vacancy means a home has been left unoccupied and unattended for 30 or more days, by definitions of the majority of insurers. Vacancy also entails your home is more vulnerable to potential damages and losses, such as burst pipes, theft and vandalism, infestation, and more - all of which may not be covered if you haven't previously disclosed your home vacancy to your insurer.
While updating your home can actually be a good thing in the eyes of most insurers in Alberta, certain companies may deny claims for damages that occurred to a part of your home that was renovated - but that you failed to disclose to your provider. Yes, undisclosed renovations can result in claims being denied. Some modifications, like revitalizing old systems, furnaces, and plumbing, can decrease your rates, but you will need to inform your insurer before any work begins.
Platforms like Airbnb have popularized the act of renting out a portion of your home for a short period of time to travellers and visitors. While it's a great means to supplement your existing cash flow and even pay off ongoing expenses, like a mortgage, failing to disclose rental activities to insurers can result in claims being denied and policies even being voided.
What is the typical price for home insurance in Beaumont?
The actual amount you may end up paying for your homeowners insurance in Beaumont is largely dependent on the insurance company that you are with and many factors relating to your insurance and claims history and, of course, your actual property. In Alberta, the average cost of home insurance is about $1,000. You may find your prices will vary depending on the factors detailed in the section beneath.
What factors help to determine the cost of my home insurance in Beaumont, Alberta?
The cost of your homeowners insurance varies immensely due a process the insurance industry refers to as underwriting. In the underwriting process, insurance specialists look at key factors regarding your home, your household members, and so forth. As your life situation changes, your insurance coverage needs may also change, so you will need to inform your broker or insurer of any alterations required.
Below are a few of the factors used to help determine the cost of your homeowners insurance:
Your personal insurance record
You, and your household members, are taken into account when your rates are being determined. Typically, the following characteristics will be looked at:
- Your insurance history: Including who you were previously insured with, how long, and if any lapses in coverage occurred.
- Past cancellations: These aren't always indicative of an issue, but cancellations as a result of non-payment can be a red flag to prospect providers.
- Previous claims: Like with auto insurance, the number of past claims you have made, their frequency, and their severity may affect your rates.
Your home itself
As you might imagine, your actual property is easily the biggest factor in how much you will end up paying for your home insurance in Beaumont. Below are some of the aspects of your property that your insurer will look at:
- Your property's age, condition, and its systems: Older homes with unrenovated plumbing, heating, and electrical systems may end up facing more issues than newer properties.
- The overall value of your property: The more it cost you to buy, the more it will likely cost you in the long run to insure.
- Its size, including square footage: The more there is, the more it will cost to insure. This also includes your basement.
- Your personal property, and their total value: The amount of contents coverage you end up purchasing may vary based on the items you own.
- The environment of your home, and where you are located in Beaumont: Being situated near to hazards like large bodies of water or high-crime neighbourhoods can raise your rates.
Your home insurance rate is clearly dependent on a huge list of different factors. Homeowners may not be aware of what goes into their rates, but actually knowing can make a big difference in understanding how to control the amount you pay! A BrokerLink broker would be happy to go over with you the best ways to reducing your costs.
Tips for saving on your home insurance rates in Beaumont, AB
One of the biggest parts of understanding how to save on your home insurance in Beaumont, or any insurance products, is to know what goes into your rates. Of course, having an insider scoop from an expert like the experts here at BrokerLink is also a great help, as we can give you curated advice on your insurance policies and all the various discounts your insurer offers. The list below is comprised of some of the best ways to save on your rates in Beaumont:
Select a higher deductible
Premiums and deductibles directly impact each other. Also applicable with auto insurance and numerous other insurance products, raising your deductible can qualify you for lower rates. If your coverage is subject to a deductible, then that's the amount you'll have to pay before your insurance company pays the remaining amount. By taking on a higher deductible, your provider may lower your rates.
Consider bundling your policies
For example, bundling home and auto policies may qualify you for lower insurance rates. This is because providers want your return business, so they'll incentivize you with a discount to come back and purchase additional insurance policies through them. Usually, you can save between 10-15% for each policy added to your "bundle."
Invest in monitoring systems
Recognized and approved monitoring systems - i.e., fire alarms for fire safety, carbon monoxide detectors, and burglar or camera monitoring systems, may qualify you for discounted insurance rates. Insurance companies like it when you take the necessary steps to protecting your home from potential exposures. Remember that not all systems may be recognized by your provider in Alberta, so be sure to ask before you buy.
Consider doing a home renovation
If you have an older home, odds are that your home's systems are starting to wear and see their age. You might be paying more in utilities than the home jump left - and no one wants to pay for more than they have to. Renovating or upgrading your home's integral systems, like its heating, ventilation, electricity, or plumbing, may result in decreased home insurance rates.
Work with a broker
This might go without saying, but working with a broker is easily one of the best ways to achieve the best savings! Brokers have the insider scoop on all the best ways to save money, and they can work with you to shop around and find you affordable quotes.
Whether you're looking to insure your primary residence or you need vacation property and cottage insurance, BrokerLink's status as self-proclaimed "insurance nerds" gives us the edge on insuring residences such that their occupants can have peace-of-mind, knowing one of their most valued assets is well-protected. Unlike an insurance agency, BrokerLink represents numerous top-quality brokerages in Canada, and can give you access to multiple markets not otherwise available through your standard Google search. We look forward to helping you find homeowner insurance for your needs.
We're in your community
One of the greatest advantages of working with a BrokerLink insurance broker is that you could very well be working with your next door neighbour! With over 200 branches in Canada, BrokerLink's widespread presence allows us to connect on a personal level with our customers, giving them the best price and extensive knowledge based on our own understanding of what it's like to live in Beaumont.
Local Alberta insurance links
If you’re a member of a group or association, you may be eligible for more discounts.
When you are ready to begin on your high-quality homeowners insurance in Beaumont today, don't hesitate to give us a call here at BrokerLink. Alternatively, if calling over the phone isn't your thing, you can reach out to us either via email, or come into the nearest local branch to discuss our variety of insurance products with us today to see how we can help you. We are happy to get you going on the insurance coverage best suited to your needs, whatever that may look like. Be it Alberta home insurance, insurance for your automobile, recreational items, business, or even your pets, we have your back.
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FAQs about Beaumont home insurance
We understand that insurance is not everyone's favourite subject of all time, but that's just why we've dedicated ourselves to understanding it to such a level that we can lend our expertise to our customers and help curate customized, personal insurance policies best suited to their needs. As well, we are always happy to answer any questions you may have. See our list below of frequently asked questions about home insurance in Beaumont:
Do I need special insurance if I own a high-value home?
High-value home insurance
exists for exactly this reason. With high-value home insurance, homes that have a replacement value of more than $1,000,000 are protected. These insurance policies typically feature added limits or certain coverages that exceed the coverage that your standard home policy might provide.
Is it worth claiming an older TV on my home insurance?
To claim or not to claim is always the question. Ask yourself what the total value of the damaged item is and what the extent of the damages were. How much is your deductible? With higher deductibles, there's no point in making a claim if your item was worth less than your deductible amount. If the wind smacked open your door and broke the screen, it might not be worth making a claim. But if the wind broke multiple windows and damaged your roof, that might worth making a claim.
Why aren't termites and infestation covered by my home insurance?
Insurance policies seldom cover termites and insect damage for the reason that these damages tend to occur with time, and they aren't accidental or sudden. They may even be the result of something that is poorly made or has a defect, or infestation can simply occur due to your lack of responsibility as a homeowner. General wear and tear, mould, rust, and rot are also not covered for similar reasons.
If you have any questions, contact one of our local branches.
More Ways to Find a Great Home Insurance Rate