Risk Management for Homeowners

As a homeowner, being aware of your risks and taking action to limit your liabilities can help you protect your most valuable assets. Learn how to take control and manage risk in today's increasingly litigious world.

5 Questions to Ask

In insurance, "risk" refers to the possibility of a loss or other adverse event for which an insurance claim may be submitted. From a homeowner's perspective, risk management can be as simple as addressing these 5 questions:

What can go wrong?

Know your liabilities. For instance, learn about your slip, trip and fall risks.

What can I do to mitigate my risks?

Limit alcohol consumption when you host events at home.
Create an emergency preparedness kit and plan emergency exit routes with your family members.
Prevent sewer overflow in your basement by installing a backwater valve.
Ensure that all smoke and carbon monoxide detectors are working properly.

How do I handle a loss situation?

Keep calm and learn the 7 things you need to know when making a property claim.

In case I need to make a claim, how do I confirm the value of my contents?

A current home inventory of your belongings makes it easier to file a claim.

Can I protect my property against unpredictable events?

Consider adding earthquake coverage to your policy for additional peace of mind.

Benefits of Managing Risk

A clear understanding of all of the risks you may encounter as a homeowner allows you to measure and prioritize them. As well, it gives you the opportunity to take appropriate steps to reduce the potential for loss. Other benefits include:

Protecting people from harm
Safeguarding your valuables
Protecting the environment
Being better prepared for a variety of circumstances
Reducing your liabilities
Assist in clearly defining your insurance needs.

Litigation Risks

It's important to safeguard your home and its occupants. You could be held liable if an extended family member, friend, guest, courier, contractor or babysitter is injured while on your property. Be aware of the following:

People are now more likely to sue.
Taking steps to prevent or reduce the possibility of injury could help in defending against a claim. Learn about mitigation techniques you can put into practice around your home.
Courts are often sympathetic to injured claimants and give them the benefit of the doubt.
Homeowners are held to very high standards of responsibility.
People are more aware of the recourses they can take if they believe they have been wronged.

Learn about how to keep your home safe and mitigate your liability risks.