Real estate insurance: FAQ

For many, home insurance policies may seem like useless insurance products. But objectively thinking the matter, you will come to a conclusion that you really need a product like this, even if it is for your peace of mind. Below are some of the most common questions regarding this matter, answered by professionals and defined by the Canadian Government.

Q: Why do i need a homeowner’s insurance policy?

A: Home insurance policy products are necessary if you want to protect your property and belongings in case of a theft or a natural disaster, but also if you want to have it covered in the prospect of a damaged exterior or interior structure. In some cases, these policies will also offer you coverage if you are unable to pay the hotel or accommodation expenses if you’re unable to stay in your home for a variety of reasons.

Q: What will my home insurance policy cover?

A: These insurance products may cover the following, as the Canadian Government claims.

  • Damage, theft, loss of the possessions that can be found on the premises of your property;
  • A personal property that has been stolen from the premises of your vehicle;
  • The unintended damage that you may cause to another person’s property;
  • Damage or loss of your property, due to a variety of circumstances;
  • Damage or injury to others that may be visiting your property.

Some insurers will also offer insurance products also known as house and casualty insurance. In this case, all your belongings, starting with your property and continuing with your vehicle, and business will be insured. In several other cases, a disaster insurance is also included in the same package.

Q: What events and circumstances are covered by homeowner’s insurance policies?

A: These aspects vary from policy to policy, this is why expert recommend carefully reading the policy’s provisions before signing it. Make sure that you fully understand what it covers and what it doesn’t for your peace of mind. Discuss with your insurance broker all the aspects that may be unclear to you. However, home insurance policies usually cover two types of events: unexpected and predictable events. In the case of the unexpected events, you can be sure that fires, windstorms and other natural calamities are covered, as it is theft. In the case of predictable events, insurance companies don’t usually cover those, but discuss with them and see exactly.

Q: What is a Premium?

A: A Premium is an amount you will end up paying for your policy.

Q: How do insurance companies calculate Premiums?

A: Usually, insurance companies and brokers take into account several variables when they calculate a policy’s Premium.

  • The crime rates data available for your neighborhood;
  • Your claim history;
  • The deductible and coverage that you opt for;
  • The value of the property and other goods you want to cover;

These are some of the most common questions people have about homeowner’s insurance policies, answered by some professional insurance brokers.