HOW TO PICK YOUR HOUSE INSURANCE

Protect yourself from unforeseen loses.

Having good home insurance to protect you from losses such as theft, fire, or storm damage will give you peace of mind as you move into your new home.

It is important to shop around to find good insurance rates with coverage that will protect you from financial risk, but just like with a mortgage, the number isn’t the only factor to consider.

Here are some basics to help you know what to look for when choosing your insurance.

First, when insuring a home, the policy will take into consideration where you live, your home, any additional structures on the property, and the contents in your home.

Basic coverage typically includes theft, fire, and storm damage, and typically does not include earthquakes or over land flooding where the water enters your home through windows or doors.

While natural disasters are by nature unpredictable, you want to look very closely at any coverage you are considering purchasing to make sure there are no surprises if the unpredictable happens.

Here are three things to look at as you are assessing insurance packages:

1. DETAILS:

Most people look at the bottom line cost of the house insurance and compare policies that way. But what the policy actually covers can vary quite a bit- so make sure you read the fine print carefully and pay attention to all the details. Ask the agent to explain anything to you that doesn’t make sense.

2. DISCOUNTS:

Many insurance companies offer great discounts if you are willing to invest in a home security system, fire prevention measures, or address any high risk aspects of your home. These discounts can save you lots in the long run. As well, sometimes you can get discounts for bundling different kinds of insurance with the same broker.

3. DEDUCTIBLE:

The deductible is the amount you will pay if you need to make an insurance claim. The lower the deductible, the higher the premiums will be. If you can afford to pay a higher deductible, this could save you on your monthly premiums.

As you assess your options make sure you do some research about the company’s reputation, customer service approach, and claims process.

These things can make a big difference in the event you need to make a claim, and just like mortgage brokers, there are insurance brokers who are experienced professionals who can help you navigate your options and make an informed decision.

One such insurance brokerage firm is MyInsuranceShopper.ca can help you find a home insurance broker in Alberta, or ask your friends, family or us for a recommendation.

For more information about making an informed insurance decision in Canada, the Insurance Bureau of Canada has a handy brochure to check out.