Purchasing a new home is arguably the most significant investment that you will ever make in your life. However, the second most important investment that you will make is taking out home insurance for your home in Ottawa.
Before you decide to invest a few thousand dollars on an 80 inch 4K Smart TV, you may want to do some research to determine which home insurance is right for you and your loved ones. Below are some of the fundamentals you should know about homeowner’s insurance.
What is homeowner’s insurance?
Investing in a new home is usually the biggest investment a person or family will ever make. However, some new homeowners mistakenly assume that home insurance is an extravagant luxury that they cannot afford, while in reality, homeowners insurance in Ottawa is a necessity.
Also, for those who are unaware, homeowners insurance serves as a type of property insurance whose role is to provide coverage for private residences. That means that home insurance provides fiduciary protection in the event of a natural disaster, such as a fire, earthquake, hurricane, flood, and vandalism, theft, or an accident.
What Protection Homeowners Insurance Provides
First and foremost, homeowners insurance provides the homeowner with dwelling coverage. That is, the dwelling component or clause of your home insurance will cover your primary residence and cover any attached structures of fixtures such as a garage or shed.
Personal property coverage — which is sometimes referred to as “contents coverage” — is also provided. Its role is to protect the property within your home; including, clothing, appliances, electronics, and furniture.
Home liability insurance coverage is also included as part of your homeowner’s insurance policy. It will ensure that any injuries that occur to visitors while on your property will be accounted for, and you will not be liable for damages.
Home liability insurance will cover a legal settlement if you are sued and cover all of your legal fees.
Additional living expenses, which are sometimes referred to as “loss of use coverage,” will also be included in your insurance, ensuring that they are covered if your home is damaged to the point that it becomes uninhabitable. Your expenses will be covered if you need to find a new temporary place to live, such as a hotel or motel.
Things to Consider Before Buying Homeowner’s Insurance
The first thing you need to consider before buying home insurance is selecting a policy based on your unique needs. There is no “one size fits all” policy, so you need to perform the necessary due diligence to find a policy that fits your requirements.
Next, you need to comprehend exactly how the claims process works. Take the time to speak to your agent to explain how your claims will be handled, particularly the part where they will have to write you a check.
We would also suggest that you look into multiple policy discounts if possible. You should try and obtain a quote for other insurance packages that your insurance company provides. This will give you the opportunity to save on not just one premium but two or more.
A company health check is also in order, as you will need to vet each insurance company you are considering partnering with. To do so, evaluate the scores of each via the websites that are provided by the top credit agencies in the industry.
The general rule of thumb is an offer that seems too good to be true is often the case, so taking the time to assess each company’s reputation and track record is an absolute must during these tumultuous times.
Furthermore, getting multiple quotes is very important, as homeownership is a big decision that should not be taken lightly. You should obtain as many homeowner’s insurance quotes as possible, as coverage needs can vary greatly, depending on your unique mental, physical, logistical, familial, financial, and regional needs.
On that note, you should call your agent as soon as a life-changing event has transpired. For example, you should call your agent if you plan on getting married or are filing for divorce. You should also call them if your grown children have moved out, or have decided to move back in.
In other words, your inventories and policies should be up to date at all times, as the items you need to cover and the amount of insurance that you require will fluctuate as you age.
Homeowner’s Insurance Protects Your Family
Home insurance is designed to protect the financial health of you and your loved ones. Failure to obtain home insurance can have dire consequences. A single accident that takes place in your home can have a significant impact that can lead to insurmountable financial losses.
Once you’ve signed your new homeowner’s insurance policy, you can enjoy peace of mind that you will have comprehensive home insurance coverage — at an economical price — allowing you to enjoy your new home without issue for years to come.
To learn more about homeowner’s insurance, call Oegema Nicholson at 613-519-0230 or contact us here.