What’s Covered in Your Home Insurance Policy?

While all home owners have house insurance, the majority don’t know exactly what is and isn’t covered in a standard home insurance policy. Read on for a quick overview of what your standard house insurance policy protects you against. Keep in mind: every insurance provider is different, so make sure to check with yours if you have specific questions about your coverage!

What IS Covered in Standard Home Insurance Policies

House Rebuild

If you lost your house due to a fire, flood or other natural disaster, your home insurance will cover the cost of rebuilding a house of the same size. While you are displaced during the rebuild, your insurance will also cover all of your living expenses until you are ready to move back in.

Water Damage

Your home insurance covers any damage resulting from sudden or accidental water discharge, such as a water line break or an appliance that overflows; however, not all water damage is covered under standard policies. The simplest way to know if your water damage qualifies for coverage is to consider the source of the water. Most standard policies cover damage caused by “clean water”, which can be described as water that hasn’t come from the ground or sewer.

Mortgage Rate Protection

If you find yourself displaced from your home, your home insurance will protect and honour your mortgage rate until you move back in.

Theft Outside the Home

Your home insurance coverage also extends to the contents of your home. If contents are damaged or stolen – even if the loss or damage doesn’t occur at home – the coverage still applies! This also can be applied to theft during a vacation. In this circumstance, be sure to consult with both your travel insurance and home insurance provider to determine which one will offer you the best repayment.

Legal Claims

If you find yourself in the middle of a legal battle because someone slipped on your property, your home insurance has got you covered. Your policy will cover the legal fees, as well as any settlements agreed upon (up to your policy limit, of course).

What ISN’T Covered in Standard Home Insurance Policies

While the standard home insurance policy is quite comprehensive, there are a couple of areas that aren’t initially covered. This is not to say that coverage isn’t available, but it often comes in the form of additional coverage that you would add on to your current policy. Dependent on your situation, you may want to consider addition coverage to protect you from

  • Sewer Back Up Damage
  • Overland Flooding (ex. flooding due to an overflowing river).
  • Code Rebuilds – protection from changing bylaws that cause you to have to make changes to your home.
  • Unit Owner Additional Protection – this insurance is specifically for condo owners. It protects you from any damage in your unit that ends up causing damage in other units.

Chat with A Broker Today

Each insurance policy has slightly different requirements and coverage, so be sure to have a chat with your insurance broker about the specifics of your policy.  If you are looking to purchase home insurance or add additional coverage to your policy, give the team at Capital Insurance Brokers a call. We will make sure you have the right coverage for your needs.