Types of Home Insurance Policies

When you are shopping for home insurance, there are some key considerations to keep in mind.

Homeowners

  • Does your policy cover outbuildings such as sheds and garages?
  • If you have to live outside your home for a time, are those additional living expenses covered? Does the policy cover your personal property that is inside the home as well as the structure of the home itself?
  • Do you have enough personal liability coverage in case someone gets injured on your property? What about their medical expenses?
  • Some policies will allow you to make a claim against your home insurance in the event that you damage someone else's property. This is called voluntary property damage.

Condominium owners

Just because your building is owned by a condominium corporation, doesn't mean you have insurance coverage. To be protected, you need your own insurance. Here are some key things to consider when purchasing your insurance:

  • Is your personal property covered as well as the condo structure? What about interior improvements and betterments that you have added?
  • If the condo becomes uninhabitable, are your additional living expenses covered?
  • Do you have enough personal liability coverage in case someone gets injured in your condo?
  • Can you make a claim against your insurance to cover the costs of damage you cause to someone else's property?
  • There are often unique considerations pertaining to the building, which is owned by the condominium corporation. Check to see if your policy has loss assessment coverage.

Tenants

  • Is your personal property covered?
  • If you have made improvements to your unit, are they covered?
  • What about your hotel bills if the building becomes uninhabitable?
  • Even though you do not own the building, you can still be sued if someone gets injured while visiting you. Do you have personal liability coverage? Including medical payments?
  • Can you make a claim against your policy to cover the costs of damage that you cause to someone else's property?

Comprehensive or broad form?

Most people prefer comprehensive policies for their home because these policies protect both your home AND your contents against all risks except the risks specifically named in the policy. There is another kind of home insurance policy, however, called "broad form" insurance. This type usually costs less because it only protects against the specific risks named in the policy, and nothing else. This results in limited contents coverage.

People often choose broad form insurance for vacation properties or outbuildings, where the contents would be minimal.

Home insurance protection varies from one insurance company to another, and policies can be difficult to understand. Your Stevenson & Hunt Advisor can answer all the above questions and ensure that your policy meets your needs.


Disclaimer:

* The information provided is for information purposes only. In case of inconsistency between this information and the policy, the policy terms, conditions and limitations will govern.