Home insurance may not be mandatory, but it certainly helps to have handy in case anything should happen unexpectedly. You want to ensure you will be kept financially sound if disaster should strike, and home insurance can do just that. While you certainly don’t need to be an expert in home insurance in order to acquire coverage that is best tailored to your situation, it helps to understand the basics. Here are five of the more lesser known facts about home insurance you probably didn’t know.
1: Home insurance is different from place to place.
Home insurance can differ depending on what state or province you live in. For example, if you are looking to acquire home insurance in Regina versus coverage in another province, you might be surprised to learn that rates and policy inclusions may differ depending on where you live. Moreover, the coverage that you will need may vary depending on the variables affecting your lifestyle in your area. Does your area see a higher risk of vandalism or crime? Your coverage and rates may reflect this.
Discuss with your broker about the details of where you are and what coverage is necessary to best reflect where you live and the lifestyle you live.
2: The way you look after your home matters.
Your insurance provider will want to see that your home is properly maintained in order to lessen the risk of damages. A well-looked after home is less likely to require repairs if you are regularly doing inspections, updating your home’s systems, trimming your trees, and keeping an eye out for any signs of leaks or wearing you will be in much better standings should something happen.
Moreover, your insurance provider may deny a claim if they discover it is a result of poor maintenance. When you purchase a policy through an insurance company you are essentially agreeing to ensure that you are looking after your home to mitigate the chances of needing repairs or replacements.
3: The breed of dog you own may affect your insurance.
You love your dog, but your insurance provider may have some reservations depending on the breed and the history of your beloved pet. Dogs pose a potential liability hazard if they cause damages or even bite a guest. Did you know that the average cost of a dog bite is $30,000? Due to this, certain dog breeds that are deemed more dangerous may be blacklisted or result in inflated home insurance rates. Think:
- Alaskan malamutes,
- Cane Corso,
- Chow chow,
- Doberman pinscher,
- German shepherd,
- Great Dane,
- Pit bulls,
- Siberian huskies,
- Wolf hybrids.
If the dog that you own is blacklisted, you may want to consider purchasing a separate liability policy. Discuss with your broker if you own any dog which might be blacklisted on your home insurance.
4: Just because it’s “natural” doesn’t mean you’re covered.
Not everything is covered by your home insurance. A standard home insurance policy can provide many protections and coverage for a variety of things, including the structure of your home, your liability, loss of use, belongings, and more. Still – not everything is covered! In order for something to have coverage it must be first considered accidental and even then, that doesn’t constitute protection. Some natural disasters are exempt from coverage as well, even if they are sudden.
Natural disasters not covered by your home insurance may include such perils as earthquakes and floods. It is important that you understand the kind of exposures you face depending on where you live. If your area is prone to a certain kind of disaster not covered by your general home insurance, you may need to acquire a separate policy to have coverage.
5: Actual cash value and rebuild cost may be very different.
If something should happen where your home was entirely written off and needed to be rebuilt,you might be surprised that the cost would be more than that of your home’s purchase value. If your insurance is only sufficient enough to cover the market value of your home, you might not be able to afford properly replacing it in the event of a disaster.
If you do not plan to leave your home anytime soon this might be less of a concern, but you always want to make sure you have enough coverage for if anything should happen. You never want to be left in hot water in the event that your coverage isn’t enough to help you recover following a total loss.
You don’t have to be an expert in home insurance in order to understand your coverage. A broker may be able to help you better understand the ins and outs of your protection so that you can have peace of mind in knowing you’re in good standings should anything happen unexpectedly. After all, your home is one of your biggest assets. You’re going to want to make sure you’re doing everything you can to make sure it is secure!
Aarvi the owner and senior content publisher at Financeclap. Aarvi completed his education in BBA (Bachelor of Business Administration), and recently she was working as an assistant manager for the accounts company. She also works as a senior digital marketing consultant for one IT company in 2018. The main idea for starting Financeclap is to provide the best and helpful information related to the business industry to the readers. Aarvi main hobbies are playing cricket, watching videos and listening to music in the free time. You can learn more about her on about us page.