Last week, we emphasized the significance of tenant insurance in safeguarding one's rented space. However, when it comes to homeownership, having adequate protection against unforeseen circumstances becomes even more crucial. Home insurance, also referred to as property insurance, serves multiple purposes. In this article, we will explore the importance of homeowners' insurance, its coverage, and how it can offer financial security during unexpected events. Let's delve into the world of homeowners' insurance and discover why it is a vital investment for homeowners.Home insurance acts as a safety net in times of disaster. Stories about weather-related property damage have become more common in recent years. Snowmelt and frozen rain, coupled with frozen ground, has led to widespread overland flooding, seepage, and sewer backups.Over the past decade, the Insurance Bureau of Canada (IBC) calculates that extreme weather events caused at least $1 billion in losses. In 2020 alone, the IBC reports that January’s record-breaking high temperatures in southern Ontario and Quebec already caused more than $95 million in damages.According to the industry reports, floods account for 33% of all natural catastrophe loss by value.&nbsp;&nbsp;“Water damage incidents, such as the flooding of buildings from burst pipes, are the most frequent driver of claims, accounting for around a quarter by number…”. In such scenarios, home insurance can prove invaluable, providing homeowners with financial assistance to cope with the costs associated with the destruction of their homes.Amidst the threats to our health, environment, wildlife, and homes, homeowners' insurance emerges as a lifeline to protect one's most valuable asset. For instance, during the recent devastating wildfire season, more than 4,000 homes were destroyed or damaged in Canada, leaving many families in dire need of financial support to rebuild their lives.Home insurance extends its protective umbrella beyond direct damages to your home or property. Did you know that slips, trips, and fall injuries send thousands of Canadians to the hospital each year? With liability coverage provided by home insurance, homeowners can protect themselves from potential legal claims and associated expenses in the event of injuries occurring on their property.The Government of Canada outlines two primary types of coverage provided by home insurance policies. According to recent statistics, the average Canadian household owns approximately $40,000 worth of personal property. Personal property coverage offered by home insurance can provide financial protection against loss or damage to your home or belongings, including your vehicle.Certain circumstances may require additional coverage. In Canada, earthquakes pose a significant risk in certain regions, such as British Columbia. According to the Geological Survey of Canada, approximately 5,000 earthquakes occur in the country each year, with an average of 400 being felt by people. Homeowners in earthquake-prone areas should consider obtaining specialized coverage to ensure comprehensive protection.While home insurance is not legally mandated in Ontario, securing a policy is a prerequisite imposed by mortgage lenders and banks. In fact, a survey conducted by the Canadian Association of Accredited Mortgage Professionals found that 95% of Canadian homeowners have home insurance, demonstrating its importance in securing financing.Selecting the appropriate home insurance plan requires careful evaluation of the coverage levels and considerations of personal circumstances. Factors such as the average cost of home insurance premiums in Canada, which currently amounts to approximately $1,200 -1,500 per year, vary depending on location, property type, and other risk factors. For example, premiums for homes located near water are typically higher. It is essential for homeowners to assess their specific needs and consult with insurance professionals to make an informed decision.Home insurance acts as a vital shield, protecting homeowners from unexpected events that life may throw their way. It alleviates the physical, financial, and emotional burdens associated with unforeseen disasters. By understanding the coverage options, considering regional risks, and making a well-informed decision, homeowners can ensure that they and their homes are protected in times of crisis.

Homeowners Insurance: Understanding the Essentials

Protect your home and secure peace of mind with homeowners' insurance. Essential for financing, choose the right plan to safeguard your most valuable asset in 2023.

About RIFO

Business

Investors

News

Contact Us

Contact Us