Property Insurance is sold in many forms –Homeowners Insurance, Condo Unit Owners Insurance, Tenant Insurance, Condo Townhouse Unit Owners Insurance, Freehold Townhouse Insurance, Rental Condo Insurance, Rental Property Insurance, Cottage Insurance, Secondary Home Insurance, Large Estate Home Insurance. Every property has its own insurance coverage.
The first home insurance used to be called Fire Insurance because the insurance was for the peril of fire. Your real estate agent or lawyer will ask you to provide proof of fire insurance or fire insurance binder. They are asking for proof of property insurance. Property insurance is sold through many channels like auto insurance and it is very important to know you have the right insurance package. Our dedicated insurance staff at Aaxel Insurance Brokers Ltd, Durham branch will help you find the right coverage for your home insurance needs. We have the knowledge, experience and expertise in finding the right coverage for you and your home. You will also find that our service excellent and courteous. Your peace of mind is our priority.
For most people in Ontario their house is their largest monetary investment in their life time. It is important to protect this investment with an insurance policy which is not based on cost alone. The reason is home insurance policies come in different forms. You can get a cheaper policy by removing some coverages, but you are exposing yourself and your family to a huge financial catastrophe.
A typical Personal Property Insurance policy will cover the following:
Liability or Personal Liability
This is a very important section of home insurance – be it Homeowners Insurance, Condo Unit Owners Insurance, Tenant Insurance, Condo Townhouse Unit Owners Insurance, Freehold Townhouse Insurance, Cottage Insurance, Secondary Home Insurance, Large Estate Home Insurance. If you or any insureds cause physical injury or property damage unintentionally to another person or their property, you could be personally liable. This coverage protects you against such lawsuits. The liability follows you world-wide.
The Building – This is referred to as Coverage A-Dwelling Building.
This is the value for which the property is insured. If you have home insurance, you need to make sure you have replacement cost endorsement on your policy. If the house is a total loss due to an insured peril, then the insurance company will pay to rebuild your home. Our knowledgeable brokers at Aaxel Insurance Brokers Ltd., Durham Branch will ask all the right questions to make sure your home is insured to the value.
Detached Private Structures – Coverage B
As the name suggests this coverage is applicable to detached private structures like detached garage, sheds etc. The coverage amount is 10% to 20% of the Coverage A depending on the insurance company. If the Coverage A is calculated to be $450,000, then Coverage B will be between $45,000 to $ 90,000, depending on your insurance company. It is an inbuilt part of the policy and there are no additional premiums charged for this coverage.
Contents – Coverage C
This covers the contents in your home. It includes clothes, kitchen items, couches etc. If you have high value item Jewelry, Furs, Fine Arts, Coin Collection, Chine, Computer software, stamp collection, sports memorabilia, sports equipment, bicycles, antiques, boats, hearing aids etc. you should talk to your broker about them since they all have specified value insured under regular home insurance. You can either insure those items as floaters or increase the blanket protection for that item group, depending upon your need and your insurance company. We at Aaxel Insurance can help you take the decision on how to insure them. Under a regular Home Insurance 70% or 80% of the rebuild cost of the property will be the coverage for your contents. In other words, if the rebuild cost of the home is $450,000, the coverages for contents should be $315,000(70%) or $360,000 (80%). There are few companies that will go beyond 80%. It is part of the policy and there are no additional premiums charged for this coverage.
If you have tenant insurance or condo insurance then the amount of contents is chosen by you with the help a broker. Contents in case of Condo Insurance or Tenant insurance is not a percentage of the rebuild cost of the building. Our brokers at Aaxel Insurance Brokers Ltd, Durham Branch will guide you in selecting the limit for contents if you are renting or own a condo.
Additional Living Expenses – Coverage D.
One of the most important coverage in any home insurance package is additional living expenses. If your home becomes uninhabitable due to an insured peril the insurance company will pay for any living expenses for you and other insureds in a place which provides similar comforts of your home. The is a set limit for this coverage. It can be between 20% to 30% of the rebuild cost of the house, depending on the insurance company. In our example it would me either $90,000 or $135,000. This is also applicable to the condo insurance and tenant insurance, but the limit is based on the insured contents.
Single Limit of Insurance
This is a very important endorsement in your House Insurance Policy. It allows the insurance company to add the amounts of above-mentioned coverages A, B, C or D if there is a situation when one coverage limit is insufficient to pay for the loss.
Guaranteed Replacement Cost endorsement
The endorsement is applied on most House insurance policy where the structure of the property is insured. It ensures the insurer rebuilds your property even if the damage is more than the policy limits. Sometimes there is a requirement by the insurance company to rebuild the property on the same location.
Voluntary Medical Payment Coverage
If someone is accidentally injured in your home or on your property, this coverage can be used to pay some medical costs. This coverage does not apply to the members of the household. You may or may not be liable for the incident that caused the injury. There is a set limit for this coverage between $1000 to $10,000 and there is no deductible. You need to inform your insurance company to initiate the claims process. You can speak to our licensed Insurance Brokers to get more details about this coverage.
Voluntary Property Damage Coverage
Voluntary Property Damage Coverage is like Voluntary Medical Payment Coverage in many ways. This is also paid on sole discretion of the policyholder-that is you. There is a set limit for this coverage between $500 to $6000 and no deductible applies. If you or other insureds accidentally damage someone’s property, the insurance company will pay for such damages up to the policy limits. This coverage is designed to avoid small claims or legal issues and it follows you all around the world. Since Home Insurance in Ontario differs from Insurance company to Insurance Company please speak to an Insurance broker to find out about all the terms of conditions and exclusions.
Water damage is the number one cause of claims in Ontario. It can occur in many forms – sewer Backup, flooding, broken pipes, seepage etc. Sewer backup occurs when water flows back in your property from the sewerage system or septic system. A sump pump failure can also lead to a sewer backup situation. Sewer backup coverage will pay for the necessary cost to repair the damages, provide alternative living arrangements in the event of a sewer back up loss, your residence is uninhabitable. If you are a home owner, rented property owner, condo unit-owner or tenant you should always have this coverage. Our staff at Aaxel Insurance Brokers Ltd, Durham Branch will help you choose the limits of this coverage for your property insurance.
Important - If you have a sump pump, make sure it has battery back up. Also Install back water valve or sewer back up valve. It will either prevent the back up or reduce the damage a sewer back may cause. You may be eligible for discounts on your home insurance policies if you have these devices installed based on your insurance company
Overland Water Damage Coverage
This is a new coverage that is offered by the insurance companies. If you have had your insured for past 10 years with no reviews by your broker or yourself then you need to check your home insurance documents now. This coverage is for water that overflows from lakes, rivers and ponds due to either heavy rains or sudden melting of snow. The water level in the water bodies rises and enters your home from a spot above the ground level. This can also be caused by sudden down pour of excessive rain water or melting of snow at a fast pace which generates large amounts of water around your home. This water can enter your home from a spot above the ground level and cause extensive damage. Such water is called overland water and the coverage available is called Overland Water Damage coverage. Please note insurance companies may combine Overland Water and sewer backup and provide a coverage but it is your responsibility to make sure you are protected. Talk to us at Aaxel Insurance Brokers Ltd, Durham branch and we will walk you through the process of picking the right coverage for your property. We provide independent, unbiased expert advice to all our client about home insurance. We work for you, not the insurance company. So if you are looking for Homeowners insurance in Oshawa or renters insurance in Whitby please call us at 289 274 4807.
Please note damage caused by poor maintenance is not covered by any home insurance policy. Only sudden and accidental damage is insured. Apart from some insurance coverages discussed above there are many customized products offered by home insurance companies. Our staff at the Durham office will assist you based on your needs. There are many exclusions in a home insurance policy. We will discuss them as well when we talk about your insurance needs.
When shopping for home insurance it is very important that you consult with a Licensed Insurance Broker who will use knowledge and expertise to provide you the best available product to suit your needs and make sure you get it at a competitive price.
We shop to get you home insurance quotes from several insurance companies and provide our recommendations based on your family’s needs. We are always ready to make sure your insurance needs are taken care of in a pleasant and professional manner.
So please call us when it is the time to renew your Home Insurance at 289 274 4807. You will see how our home and auto insurance packages work for you and your family.