Home insurance made easy: a quick guide
Are you new to insurance and want to know a little more on the subject? We’re here to help you. Insurance can seem complex at first, but once you master the basics, you can start making informed decisions with confidence. After all, knowledge is power.
What is home insurance?
Home insurance protects your personal property and your home, covering costs arising from unexpected incidents, such as a fire or theft. It also protects you if you accidentally injure someone or damage their property, anywhere in the world. belairdirect offers you three types of insurance: homeowner’s insurance, condo owner’s insurance and tenant’s insurance. Although you are not required by law to have home insurance, we strongly recommend you do. Protecting the items you care most about will help you sleep soundly at night!
Why should I insure?
We strongly recommend that you purchase home insurance, as it can save you considerable expense should an unexpected event occur and damage your home or involve you personally. For example, suppose there is a fire in your kitchen. The damage spreads through your kitchen to the living room, bedroom and even the neighbour’s house. You will have to replace your furniture, clothes and household items, repair walls, floors and ceilings. The bill could be quite steep. In addition, you must plan repairs for the neighbour’s place. These expenses need to be covered, and that is what insurance is for.
Who should be insured?
In Quebec, no one is required to have home insurance, unless it is specifically requested by a mortgagee/lender, but we strongly recommend it.
What should I do to be insured?
There are several ways to be insured. You can go through an insurance broker, who offers insurance products for various insurance companies. Or you can use an insurance agent, who works for one company and only sells that company’s insurance products. You can also purchase insurance directly from the company, by visiting their website or contacting their call centre to speak with an insurance agent. When you take out insurance with belairdirect, we ask you a few questions about you, your home, the things you own and where you live.
How do you calculate my premium?
Your premium reflects your personal situation. When we calculate your premium, we consider many factors, such as your type of home, the value of the items you own, where you live and how many years you have spent in the same place. If you have special collections, valuable works of art or jewelry, or other specific items that you want to protect, your rate will likely be different than someone who does not need special coverage.
It’s your turn!
Test your knowledge of home insurance by telling us if the following 6 statements are true or false.
- Unlike car insurance, you are not legally required to purchase home insurance.
The law does not state that it is compulsory to have home insurance. Before granting you a mortgage, however, most banks require that the property you buy be insured.
- Any water damage you may suffer in your home is automatically covered by your home insurance.
Generally, a basic home insurance policy covers the most common types of water damage (water leak from a washer, forgotten tap, etc.). To protect yourself from events such as a sewer backup, additional coverage can be added to your policy.
- When carrying out renovations, it is always recommended that you notify your insurer.
Renovating the kitchen, adding a garage or finishing the basement are all jobs that can increase the reconstruction value of your property, and your insurer should be notified so that your coverage remains sufficient.
- If you are a tenant, you are not required to have home insurance to protect your belongings in the event of a loss, since your landlord has one.
As a tenant occupant, you must purchase home insurance if you want to protect the property in your apartment and to benefit from liability coverage. This would come in handy if you cause unintentional damage to someone else.
- When goods are stolen while they are in your vehicle, they are covered by home insurance.
Your home insurance covers any losses incurred when property is stolen from your vehicle, according to the coverage stipulated in your home insurance contract.
- There are few ways to lower your home insurance premium.
To save on the cost of your home insurance, you can opt for a higher deductible, consolidate your auto and home insurance, and install a burglar or fire alarm. Your insurer can tell you other ways to reduce your premium.
If you have further home insurance questions, belairdirect agents are always ready to answer them for you. And that is always TRUE!
The information contained on this webpage is for informational purposes only. belairdirect makes no representation, warranty or guarantee that use of this information will prevent damage. Your insurance contract prevails at all times; please consult it for a complete description of the coverage and exclusions