Types of Home Coverage
Own or rent a house, condo/strata, heritage property, cottage, chalet or secondary property? Know how coverage works and your options.
- Understanding the 4 levels of home coverage
- Types of property insurance
- Homeowners’ insurance
- Tenant/Renter’s insurance
- Seasonal/secondary residences
- Heritage homes
- Short term rentals
- Understanding perils
Understanding the 4 levels of home coverage
A few notes on home insurance:
Home insurance coverage can be broken into two categories – personal property and personal liability.
There are several types of policies, like home (owner occupied, rented to others, recreational/seasonal); condo/strata (owner occupied, rented to others, recreational/seasonal); and tenant or renter's insurance.
Then, there are multiple levels of coverage, which we've summarized below:
Comprehensive. Covers the building and its contents for all risks, except for those specifically excluded Flood, earthquake or sewer backup are some of the optional coverages that you may be able to purchase separately.
Basic or Named Perils. Covers only those perils that are specifically stated.
Broad. Provides comprehensive coverage on big-ticket items, such as the building, as well as named perils coverage on the contents.
No Frills. Offered by some insurers, it covers properties that don’t meet normal insurance standards. Correcting physical problems can help qualify for better coverage.
Home insurance policies include personal liability coverage for bodily injury or property damage unintentionally caused to others up to the limit. Be aware that:
homeowners, condo owners and renters can be held personally liable for damage or injury they cause others
if you are sued for something which covered under the policy, your Insurer will pay your legal costs
injuries sustained by you or household members aren’t covered
This applies your actions on the property or anywhere in the world
Types of property insurance
A peril is a chance event that is unexpected and accidental as far as the policyholder is concerned. For example, if a garage door is spray painted with graffiti and must be removed and cleaned, the damage is due to the peril of vandalism.
However, the gradual deterioration of shingle roofing or the rotting of wooden fencing is natural and expected, and therefore, not an insured peril.
Home insurance policies offer coverage for either named perils, such as fire, wind, theft, etc., except those excluded or a combination of both.
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