Insuring Your Home

If you are like most homeowners, you will probably never need to submit an insurance claim. But no one is immune from misfortune!

Within limits, home insurance reimburses you for your financial loss arising from mishaps that are generally "sudden and accidental" and hard to predict and prevent.

Because there is no such thing as a standard homeowner's policy coverage may vary from one insurer to another. At Larry Grummett Insurance our brokers take the time to understand your needs then search for the right policy for you.

When to buy home insurance

Insurance coverage on your home should begin as soon as you become the legal owner or tenant, even if the home is still under construction. The policy can also cover related building materials on or adjacent to your property. If you're about to move to a new home, ask your broker if your current policy will cover your contents at both old and new locations, and in transit, too. Theft insurance applies only when a building is ready for occupancy; vacant buildings are not normally insured for more than 30 days.

Home Insurance shopping tips

Discounts

Some insurers offer discounts or other incentives for policyholders who install smoke alarms, sprinkler systems, and monitored intruder alarms. Some reduce premiums for seniors. Employment by a particular organization, or membership in a organization such as a credit union or alumni association, may qualify you for an "affinity" discount.

Some insurers offer discounts to loyal, long-term policyholders -- a factor worth considering if you have been happy with your insurer's prices and service.

Although "tied selling" is not generally permitted, government regulators find the term difficult to define. Some regulators, for example, may decree that an insurer cannot offer to insure your car only on condition that you also buy your home insurance from that company. On the other hand, your insurer may be willing to offer you a discount if you choose to do so.

Deductibles

Consider lowering your premiums by opting for higher deductibles for claims relating to your home and its contents. A deductible is the self-insured part of each loss; it is not a feature of liability insurance, however.

Don't under- or overinsure!

Don't underinsure the contents of your home. Estimate the value of your possessions and update your inventory at least once a year. Remember to include taxes. If the value of your possessions is greater than the amount of contents coverage specified in your policy, have it changed accordingly. Minimum contents coverage for home owners is normally a percentage of the building amount.

Resist any advice to overinsure the building by including the market price of the building site itself in the insured value. Whatever the limits of your policy, however, you can never claim for more than the actual loss to insured property. Insured property does not include the market value of the underlying land.

Your right to privacy

The nature of insurance requires consumers and claimants to supply some relevant personal information to insurance companies. Without such disclosure, insurers would find it difficult to assess premiums and pay claims fairly. If you have any questions or concerns about how the information will be used, it is important to discuss them with your insurer or broker before applying for coverage or submitting a claim. You may wish to determine if your insurer follows a privacy code of conduct based on guidelines established by the Insurance Bureau of Canada and the Canadian Standards Association.

Tell your insurer about major changes

If you plan to build a rental apartment into your home, duplex it, begin operating a business there, or make any other significant alterations to the structure or the way it's used, be sure to tell your insurer. For insurance to work well, full disclosure of risk is required. With insurance, the best surprise is no surprise at all!