Insurance for buyers

Home insurance is not mandatory in Canada. But since most people usually can’t afford to buy a house without getting a loan, and since many lending institutions refuse to grant loans without buying insurance, it can be said that buying a house without insurance is not possible. Unless you find a lending institution that will give you a loan regardless of the above. Of course, if you can afford the costs of buying a house without getting a loan, you can finalize your deal without getting insurance. But know that insuring your home in Canada is a smart move; Because it protects you against possible incidents such as flood, fire, theft, earthquake, etc.

Note: Home insurance costs in Canada are not fixed and depend on various factors.

The types of home insurance:

Basic coverage: The cheapest insurance coverage that covers only the items you have purchased. For example, suppose you consider fire and lightning as possible risks and insure your home against them. In this case, if your house is stolen, the insurance company will not support you.

Broad coverage: The physical structure of the house and its accessories are covered against loss and damage. But there are exceptions. Home appliances are only insured against perils you have purchased.

Comprehensive coverage: the most comprehensive insurance coverage that insures the structure and home appliances against all risks except for some optional coverages (such as earthquakes and floods)

Types of liability coverage:

Liability coverages protect you if someone is injured on your property or if you damage someone else’s property.

Personal Liability: This coverage will protect you if someone is injured on your insured property (for example, if one of your guests falls to the ground due to a slippery driveway in the winter and sues you).

Voluntary medical payments: If you unintentionally injure someone, or that person is injured in your property, the insurance company is obliged to cover the medical expenses (such as surgery, dental, etc.) for that person for a period of Pay at most one year from the date of the accident.

Voluntary property damage: If you or one of your children (12 years old or younger) unintentionally causes damage to another property, the insurance company will reimburse the home owner for the cost needed to repair and restore it.

The property insurance cover:

Home appliances, buildings and other parts that are separate from it (such as rooms and storage) are covered by insurance.

Dwelling building: In this coverage, your house and all structures connected to it (such as a garage) are insured against all risks or some of them (according to the insurance policy). Even the pool and other facilities installed outside the house are covered.

Detached private structures: In this coverage, all the structures that are separated from the main building (such as sunshade, garage and pool house) are insured against all risks or some of them (according to the insurance policy).

Personal property: In this coverage, which is also known as contents insurance, all your personal property (including furniture, clothes, jewelry, works of art, electrical appliances, etc.) are insured.

Additional living expenses: suppose an accident happens and your house is damaged and it is no longer habitable. In this case, if you have insured your property against that accident and you have to live away from your home, Additional living expenses coverage will cover your living expenses and provide you with ways to cover these expenses.

Keep in mind that home insurance coverage does not end with these things, and if you want, you can insure your home against earthquakes, floods, theft, etc. by paying more. For example, if your home is burglarized, the insurance company will even pay you to replace the locks if you report the theft to the police.

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