Why do I need home insurance in Toronto?
Unlike car insurance, home insurance is not mandatory in Ontario. However, if you have a mortgage, most lenders require you to have home insurance. Even if you don’t have a mortgage, it’s a good idea to protect your home and what’s inside it with home insurance.
Home insurance can also provide liability coverage. Here’s the most common example of why you might need liability coverage: if someone slips and falls on your property they might decide to sue you. Even if the lawsuit is without merit, it can be very expensive to defend yourself. The right insurance plan can help cover these costs.
What is covered?
The details of your home insurance coverage in Toronto will vary depending on the plan you purchase. Here are a few of the coverages that might be right for you:
Dwelling
This insurance covers the actual building you live in (your house). If your house is damaged by things like fire, lightning, smoke or wind, you may be protected under your dwelling coverage. Every policy is different, so talk to your broker to determine the exact coverage you need.
Contents
This covers your belongings inside your home. Things like your television, furniture, computer, clothing and sporting equipment could all be covered.
Personal liability
If someone is injured on your property, you might be responsible for legal and medical costs. It might seem really unlikely, but if it does happen, the costs could add up quickly.
If you would like to learn more about the different types of home insurance coverage, check out the Financial Services Commission of Ontario website. They break down all the different types of coverage and get into all the details.
What affects my home insurance coverage in Toronto?
When you purchase a home insurance policy in Toronto, your broker will ask you certain questions about your home. If things change and you fail to tell your broker or the insurance company, your policy could become void. Here are some things you must disclose:
Renovations
In the long run, renovations can add to the value of your home. However, it’s important to tell your insurance broker about any renovations you make to your home. They could affect the insurance coverage you require.
Vacant home
If your home is empty for a long period of time (usually more than a month) your home insurance coverage might not apply. If you’re taking an extended vacation, make sure you talk to your insurance broker. You can consider having someone come in to check on your home periodically.
Failing to maintain
If you allow your home to fall into a state of disrepair, you may not be covered. For example, if your roof is missing shingles, and you incur water damage as a result, your insurance company might decide you are not covered.
Running a home business
If you run a business out of your home, you will require additional coverage. If you fail to tell your insurance company about your at-home business and there is damage as a result of the business, you might not be covered. If you need additional coverage for your business, talk to an insurance broker. (Note that working from home is not the same as running a business out of your home.)
How much does home insurance cost in Toronto?
Now that you know the ins and outs of home insurance in Toronto, you’re probably wondering how much it’s going to cost! The truth is, there is no one answer to that question. There are many factors that determine the cost of home insurance in Toronto, such as the size and value of your home, where exactly you live and your previous insurance history. In order to get an accurate quote, call an insurance broker now!
How can I save on home insurance in Toronto?
Here are a few things you can do to save on home insurance:
Install a security system
A home security system might save you some money on your home insurance. Make sure you talk to an insurance broker before you buy – not all security systems will result in savings.
Quit smoking
Not only will quitting smoking improve your health. It can also result in savings on your home insurance! Smoking means there’s a higher risk of a fire, which means more expensive insurance. If you quit, be sure to tell your broker!
Bundle and save
If you combine your home and car insurance together, you could save up to 15% on both policies.
Get home insurance in Toronto
Getting the right home insurance plan doesn’t have to be hard. Call a BrokerLink insurance broker and we will work with you to find a plan that fits your life.
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