A Beginners Guide To The Different Types Of Home Insurance In Canada

Feeling confused about home insurance? Do not worry if you are reading about home insurance and are not entirely sure what it all means, and what is and what is not covered, as it can be confusing, especially if this is the first time that you are taking out a policy. Home insurance is an important type of coverage to have that could save you a fortune and provide peace of mind, but there are also a few different types of coverage, and the wording can vary between insurance companies. With this in mind, this post will look at the main types of home insurance in Canada.

Basic or Named Perils

Basic or named perils is a type of policy that will only provide coverage for perils (unexpected and accidental events) that are specifically stated in the insurance policy. This means that predictable events are not covered, such as the deterioration of a shingle roof or flooding in a property built on a flood plain. This is a more affordable level of cover, but also one that carries obvious financial risk.

Broad

Broad coverage is often seen as the middle ground, as it provides greater coverage than basic or named perils, but not the same level of comprehensive insurance. Broad home insurance will usually provide comprehensive coverage for high-value items (like the building itself), along with named perils coverage for smaller items.

Comprehensive

Comprehensive home insurance is the most inclusive type that offers a high level of protection. This will cover the building itself, along with its contents, for complete protection and peace of mind. Like all types of insurance, it can vary between insurance companies, so you should always read the small print and determine if there is anything that is excluded.

No-Frills

Sometimes, a home will have problems that prevent you from being able to obtain home insurance because the standards are too low for insurers. In this situation, you may be able to take out a no-frills home insurance policy, but it would make more sense to fix the property, so that you can qualify for a better level of home insurance.

Finding the Right Coverage

These are the main types of home insurance that you can take out for protection. To compare your options, you can use a trusted home insurance broker, like kbdinsurance.com, that will allow you to directly compare quotes all in one place. As mentioned before, always make sure that you read through policies carefully to understand exactly what is and what is not covered, as this can vary between insurance companies.

There is nowhere more important than the home and you must have financial protection in place for the building and your contents. The above are the main types of home insurance that you can get in Canada and, hopefully, this will help you to find the right level of coverage for your needs and find a good deal on your policy.