1. Your mortgage company needs proof of your home insurance.
Your mortgage company wants to know that their security is protected in the event of a fire or other some other catastrophe. They will not advance the funds for the mortgage until they are sure you have home insurance.
2. You can usually get a discount by combining your insurance.
If you get your home insurance from the same company as your automobile insurance or life insurance they may discount the cost of both policies.
3. Rural property is generally more expensive to insure than urban property.
One of the factors in determining cost is the distance to the nearest fire hydrant and fire station. The time for the fire department to get to your house and the access to a water supply are both important.
4. Home insurance does not cover all types of water damage.
Flooding and leaky basements are generally not covered. Check your policy to see what is covered and if additional coverage is available for purchase.
5. Having a home security system may get you a discount.
Ask your insurance company if they offer any savings for having a monitored home security system.
6. Having a higher deductible can lower your premiums.
A higher deductible will lower your premiums but will increase the amount you must pay out of your own pocket if a covered loss occurs.
7. Know the difference between Replacement Value Coverage and Market Value Coverage.
Replacement cost is the cost necessary to repair or replace the entire house. Market value is the value of the house in it's current condition.
8. Insurance companies will ask a lot of questions about your house.
They want to know the type of electrical wiring, type of plumbing, whether you have a fireplace or woodstove, size of the house, distance to a fire hydrant among other things.
9. Notify the insurance company about any additional structures on the property.
This includes any sheds, gazebos, detached garages. Ask that they be covered by the policy and if possible, know the value of such structures.
10. Shop around and get quotes.
Prices can vary widely. Especially if you are insuring more than just your home. Just be sure to compare what is covered as well as just prices.
These tips are just to raise awareness of potential issues with your home insurance. Please consult a qualified insurance provider for further clarification.
Helping home sellers and buyers in Barrie and Innisfil, Ontario with their home ownership dreams since 1998.