Ron Matin
Buying a home is one of the most significant financial investments. Your home may be your most valuable asset; however, it is vulnerable to fire, vandalism, and other sorts of damage and destruction, no matter how well built it is. As a homeowner, you should ensure your home for replacement expenses so that you are covered in the case of significant damage or destruction. Make sure your house insurance is up to date by reporting any substantial alterations or renovations. Here are a few pointers on home insurance for new home buyers.
Why home insurance is a good idea
Theft, loss, or damage to the inside or outside of your home or property can be prevented with the help of home insurance. In the event that you are temporarily unable to reside in your own house, it may be able to assist you in covering additional living expenditures. Living at a hotel or renting a house are examples of additional living expenses that may be necessary.
Additionally, insurers may cover:
- Damages to your house.
- Damage, theft, or loss of your personal belongings.
- Your vehicle’s personal goods have been stolen.
- If you cause unintentional damage to someone else’s property.
Home insurance is sometimes referred to as property and casualty insurance by insurance firms. Car insurance, company insurance, and disaster insurance are all examples of property and casualty insurance.
When you buy a house, get a mortgage default insurance policy
When buying a home, many individuals take out a mortgage, which is effectively a loan. The Canada Mortgage and Housing Corporation or Sagen require you to buy mortgage default insurance (also known as mortgage loan insurance) if your down payment is less than 20% of the total purchase price. Only houses under $1 million can take advantage of this offer. This sort of insurance protects your lender, not you, from the possibility of you failing on your loan.
What is not covered by homeowner’s insurance?
While a wide range of risks and expenses can be covered by house insurance, it is crucial to understand what is and is not covered by your policy. First and foremost, if your insurance company judges that the damage was caused by your own negligence, you won’t be covered. It is not covered, for example, if your home’s roof collapses and an inspection indicates that it was due for replacement or upgrading years ago. If you’re sued, you’ll have to show that you did all possible to keep your house in good repair. In addition, high-value personal property, such as jewelry or priceless works of art, is typically not covered by standard homeowner’s insurance. You can purchase separate policies for these goods, or, if you choose, you may add them to your existing house insurance policy, though you may need to do so at an additional cost. Alternatively, you can simply add an item to your home insurance policy. However, common household products like your television, microwave and other furniture are all covered.
Buying a new home in Vancouver
Are you in the market for a new place to call home in Vancouver? If you’re looking to buy a home in Vancouver, we’re here to help you navigate the process! You can contact us directly by phone or fill out our contact form on our website. Our professional realtors will guide you through the process of buying or selling your desired home all the way down.