Understanding your home insurance can mean the difference between a headache and peace of mind. We decided to ask the experts: What should I know when choosing my home insurance?
"When purchasing home insurance it's so important to understand the limits of the policy and ensure they meet your needs," says Cathy McIsaac, special services consultant for Renfrew Thompson Insurance Ltd.
Today's hot and hectic homes industry means owners should pay close attention the increased value of their home, she adds.
"I would definitely recommend people examine their policy and update it to reflect the current price. A policy is designed to help you get back to where you were, should you experience things like theft, fire or water damage."
Most policies have a natural inflation guard but it may not be adequate in today's home market, says Trish Gurr of Gurr and Company Insurance.
"Policies naturally have an inflation guard of three or four percent but considering the escalating costs in today's market, that may not be adequate to meet your needs."
Understanding just what insurance is can often clear up any misunderstandings.
"It's a guarantee of replacement cost so it's really important to alter your policy should you do any renovations or additions to your home. Many people forget to do that and that can be a problem down the line."
Understanding what your policy doesn't cover is also important.
"You should definitely be aware of what isn't covered by your policy. You can always upgrade the policy to meet your needs.
"Do an evaluation of your home's contents. Everything from your clothes to jewelry to special collections should be accounted for.
"Even things like bikes, which can run quite high in price these days, should be accounted for," says Gurr, adding pictures, videos and lists of the home's interior and its contents are crucial, especially after a devastating fire or theft.
While choosing a more inclusive policy could mean a higher premium, it's all worth it should you face unfortunate circumstances, says McIsaac.
"It can seem like an unnecessary cost but should you have to rebuild or replace belongings, it's absolutely invaluable."
Check with your broker to ensure you are on the right track, she adds.
"Phone your broker and don't ever be afraid to ask questions. That's what we are here for."
