Questions to Ask When Getting Insurance for Your First Home
Buying your first home is one of the biggest financial steps you will ever take. It’s exciting getting a new home, but there are many things to think about before you move in.
One of those things is homeowners insurance. While homeowner’s insurance is not required by law in Canada the way auto insurance is, it’s still crucial to have. If anything happens to your home, and you do not have homeowners insurance, you could be out a lot of money.
Many lenders will not give you a mortgage if you do not have insurance, as they want to protect their investment.
This article will help you figure out the most important questions you need to ask when getting insurance for your first home. Our team at Archway Insurance will be happy to help you work through the process of asking them and also obtaining homeowners insurance.
What does my homeowners insurance policy cover?
It’s vital to know what your insurance policy does and does not cover. A policy may only cover you against specifically named “perils.” For example, your insurance policy may cover fire, but not flooding.
It’s important to understand the type of policy and coverage you have purchased, so you aren’t hit by a disaster — such as a hurricane — only to find out your policy doesn’t cover it. You may want to buy additional coverage for specific perils not covered in your standard or basic homeowner’s insurance policy. An insurance agent can help you figure out what your best choices are in this area.
What would it cost to rebuild my house from scratch?
If your house is so badly damaged that you need to have it completely rebuilt, your homeowner’s insurance policy must cover this cost completely. In order to get an accurate idea of how much it would cost, you must let your insurance company know critical factors about your house, such as:
- Materials used to build the house
- Age of house
- Any special features that may make your house more valuable
Do I qualify for any discounts?
We all want to save money on insurance without compromising our coverage. When you are talking to an insurance agent, let them know if you have any of the following, it may help you get a discount:
- Burglar alarm or a home security system
- Smoke detector
- Sprinkler system
Another option to save money is to bundle your car and home insurance together. Discuss with your agent how much this could save you, and how you could arrange to move your current car insurance to them.
How much is the personal property in my home worth in the event of a total loss?
You need to cover not only the actual structure of your home itself but also all the personal property you have in it. Personal property can be any of the following:
- Electronics, such as computers and cameras
- Musical equipment
A good way to ensure you are aware of everything you own is to take pictures of it and keep them in a safe location outside your home. Talk to your insurance agent about what amount of personal property coverage you should obtain.
What kind of liability coverage do I have? How much do I need?
Homeowner’s insurance can also help protect you if someone is injured on your property, or you or your home damage someone else’s property.
Here are some sample situations where you would need liability coverage:
- A person slips and falls on your property, and you have to pay for their legal and medical costs.
- You are in a condo, and your pipes leak, damaging another condo. Liability coverage would help pay for any repair or replacement costs.
- If your pet attacks someone, you may have to pay medical costs or defend yourself against a lawsuit.
- If you serve alcohol at your home and someone drives home drunk and causes an accident, you could be held liable.
- Someone uses your pool, is injured and sues you.
Talk to your insurance agent about how much liability coverage you may need.
Why shop with Archway Insurance?
We’re here to help make sure when you move into your first home you are adequately protected. Whether you are in New Brunswick or Nova Scotia, we want you to be able to move into your new home with peace of mind and get all your insurance questions answered.
We want to help you obtain the right homeowner’s insurance at the right price. To do that:
- Our highly trained staff can help walk you through any questions you may have about obtaining homeowners insurance.
- We can discuss with you if there are areas you can save money, or if you may need to buy additional coverage.
- We have relationships with over 10 different insurance companies. We’ll work with those companies to ensure that we can get you the right homeowner’s insurance at a reasonable price.
It’s important to make sure you’re properly insured, but you don’t have to do it alone. We can help make sure you’re protected, no matter what happens to your home.
Get Started with Great Insurance
You’ve learned that there are several critical questions you must ask when getting insurance for your first home:
- What does my homeowner’s insurance policy cover?
- What would it cost to rebuild my house from scratch?
- Do I qualify for any discounts?
- How much is the personal property in my home worth?
- What kind of liability coverage do I need?
We want to be sure you get the coverage you need for your home, and we will work with you to make sure you get it.
For more information about what to ask when getting home insurance for your first home, call Archway Insurance at 902-477-2511 or contact us here.