What Is Home Insurance - Benefits & Features

Purchasing your dream home probably involves the single largest financial commitment of your life. 

Naturally, you would strive to secure your asset against any sort of damage. Damage to your home can turn out to be a financially and mentally draining ordeal. With a proper home insurance coverage, you can secure your property as well as its contents against loss, damage, or theft.

Simply defined, home insurance is a coverage that offers financial security against any sort of peril involving your property. If you are planning to purchase an Alberta home insurance policy, it would be logical to reach out to the insurance experts at Surex for the best quotes. The experts will help you compare the privileges of each policy based on your requirements.

What does home insurance cover?

Home insurance or homeowner’s insurance is a type of insurance coverage that warrants financial compensation to the owner in case of any damage or loss of the property or its contents. Like any other insurance policy, you need to pay premiums for your home insurance policy. 

A comprehensive property insurance policy also covers your furniture, appliances, and belongings against damage following an incident. Besides, you can also include liability coverage against accidents in these schemes.

Being a homeowner, it’s natural to ask “what does home insurance cover?”.

Different types of home insurance policies

According to the Insurance Bureau of Canada, homeowners can choose from several types of property insurance policies. 

Standard policies: Standard policies have some specific perils listed in the agreement. You can claim compensation if your property sustains damage due to any of these known occurrences.

Comprehensive policies: A comprehensive home insurance policy covers your property against almost all perils. These include all the risks and personal liability.

Broad policies: This is a kind of mid-tier policy that offers less privilege compared to comprehensive policies but more coverage than standard policies.

No-frills: Certain properties in Canada don’t qualify for insurance as per the standard parameters of the insurers. With no-frills policies, you can get these homes covered under insurance.

What are the benefits of having a home insurance policy?

Being a homeowner, it’s imperative to understand the strategic advantages you can enjoy from a home insurance policy. In this context, you might be willing to know, “What does home insurance cover?”

The value of your property, as well as its contents, defines the overall coverage against which you need to pay your premiums. The insurer would also calculate the property's risk profile based on its demographics, age, materials, and other standard parameters. Let’s explore some of the most common benefits of having a homeowner’s policy.

  1. Loss of dwelling

With a typical home insurance policy, you would remain secure against the loss of dwelling in your property. Natural disasters can render your property uninhabitable. Some of the insured perils in a property insurance policy include:

  • Wind damage

  • Theft or burglaries

  • Smoke or fires

  • Lightning strikes

  • Water damage (in select policies)

  • Vehicle or aircraft impact

  • Falling objects

  • Impact of vehicles or aircraft

  • Natural disasters like earthquakes

When you reach out to the insurance experts at Surex, the professionals will scrutinize the risk profile of your property based on the most potential perils. Accordingly, they would suggest the best policy to cover your home. In case of any of these incidents or occurrences, you can file a claim for loss of dwelling and obtain compensation.

  1. Insurance for home contents

Apart from securing you financially against physical damage to your property, a comprehensive policy also covers the contents of your home. For instance, your possessions, like electric appliances, furniture, or apparel, are susceptible to theft, vandalism, fire, or damage. Based on the overall value of your possessions, the insurer would set a coverage limit.

For insuring expensive items like rare art, jewelry, or luxury goods, you need to shell out additional premiums. When you own a home, it’s a good idea to have all its contents covered. In case of disastrous incidents like fires, you can lose all your valuables. Only adequate coverage for your home insurance can come to your rescue.

  1. Personal liabilities

Suppose you have visitors at home. A chunk of concrete drops down from a height and injures some of them. Since the accident took place in your residence, you would be responsible for the medical expenses and legalities.

Likewise, leaking pipes in your condo can damage other residential units. So, you need to shell out the replacement and repair costs. All these expenses come under personal liability coverage. All basic home insurance policies come with these privileges. It covers all the possible perils where you are liable to pay another party, thereby securing you financially against these expenses.

Optional coverages and add-ons for home insurance policies

Homeowners often want to include specific perils in their policies that are not a part of the general privileges. These are known as riders or add-ons, which may not be available as standalone policies. So, you need to add them to the main policy to enjoy their benefits. Some of the common add-on policies include:

  • Flood damage

  • Sewer backup

  • Valuables like art pieces and jewelry

Based on the risk profile of your property and its contents, you need to decide on the riders to include in your policy. However, when you cover home insurance costs, you’ll need to pay more for the additional protection.

What exactly does home insurance cover in Canada? — Endnote

With so many insurers operating in Alberta, it’s natural to face a dilemma over the choice of your home insurance. 

So, it’s always wise to discuss the matter with reputed insurance experts. Insurance professionals, like insurance brokers, can help you find an affordable quote and include the most potential perils. This way, you can remain financially immune against disasters, vandalism, theft, or any other occurrence affecting your property or its contents.

Besides, activities like renovations, using your property for commercial purposes, or the lack of maintenance of your property can affect your premiums. Under some conditions, these activities might even lead to the denial of claims. 

So, it’s always recommended to consult the experts to make an informed decision on your policy choice. You can save on your premiums besides benefitting from all-inclusive coverage against the potential peril.

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