A home represents many things to its owner. It’s a physical place that’s safe and comfortable for the family to live and grow together. Homes are also major financial assets owners rely on as a nest egg.
While homeowners aren’t legally obligated to insure their homes, protecting the domicile and such a vital investment is wise. However, home insurance isn’t a binary question of yes or no.
Insurers look at your home with a cold sense of detachment which allows them to weigh various risks evenly. You’ll need to adopt such a perspective before selecting home insurance. Let’s look at the different types of insurance available and some key considerations before buying.
Risk Assessment
The most visible aspects of a home are seldom what needs insuring. You may love the kitchen tiles or some other aesthetic element of your new home, but how are its structural bones? Is the location prone to natural disasters, like floods?
How close is the nearest fire hydrant, fire department, or alternative municipal responding service?
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Guts and Home Basics Matter
Sometimes a home’s basics can raise the price of insurance. The age and type of roof, heating system and the presence of natural or gas fireplaces can all impact insurance costs.
Fun and enjoyable amenities can also raise insurance costs. The kids may love swimming in the backyard pool in the peak of summer, but you’ll need to pay a larger insurance premium all year round.
Different Types of Insurance Available
Homeowners want different levels and types of coverage and the industry has them covered. Canadian homeowners can choose from personal property coverage and liability coverage or a blend of the two. Such insurance covers the property inside the home and protects or indemnifies the owners in case somebody injures themselves in their home.
There’s also comprehensive, standard, or broad insurance coverage. Each one involves a greater or less degree of coverage for a corresponding price. You’ll need to speak to your insurance broker to go deeper into the weeds about the specific options they offer.
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The Future of Home Insurance
The insurance you buy will match your budget and personal temperament. Some people don’t mind the risks that come with being uninsured, while others can’t rest at night knowing they left themselves even a little bit vulnerable.
The insurance industry has evolved a lot over the years and isn’t done yet. Modern real estate technology has transformed how people buy and sell property, and tech may yet enable home insurance too. The digital disrupter Regan McGee created his real estate tech platform Nobul to empower buyers and sellers, and, in his words, he may not be done yet.
“We are always thinking about new ways to help the consumer and we are always adding cool, interesting functionalities to our platform including auxiliary services (insurance, mortgages, etc.).” Consider weighing your options about home insurance carefully and from traditional perspectives. You may be able to get a great rate and streamlined experience using modern digital tools.
You’ll need to choose from many options before selecting home insurance. Factor in all the risks, speak to your insurers and real estate agent and consider leveraging modern technology. After that, the home will give you comfort as a warm place to live and as a reliable financial asset.