Your pipe suddenly bursts and causes significant water damage. A slow leak has damaged your underlay and caused need for other repairs. Do you know in which of these cases your home insurance would cover you?
According to the TD Insurance Uncovered Poll, conducted in September, 2010, of over 1,500 Canadians questioned, nearly 25 per cent stated that they did not know what their insurance policy entitled them coverage to.
Of the 53 per cent who had made a previous claim, 42 per cent said they had found something surprising on their policy. More than half of the poll’s participants said they do not keep inventory of the valuables in their home, and 71 per cent said they didn’t update their insurance when they acquired an asset of major worth.
Three Common and Costly Errors
The majority of home owners get so accustomed to annually renewing their home insurance policy that they often omit taking the following into consideration, which could mean an expensive outcome:
- Not all home insurance policies offer the same coverage: if you’re switching policies for a better rate, or moving and acquiring a new policy, don’t assume that one policy will be the same as another.
- Not all home insurance policies charge the same premiums: shop around. Utilize the service of an insurance broker with access to a wide range of insurance providers to land you the coverage you need at competitive rates.
- Your coverage needs to be updated: your policy may account for inflation, but it won’t account for property value gains that leap above that, or new costly assets that enter the home.
For older homes, some home insurance providers require that specific repairs be made before they will provide coverage. Some home insurance may not cover damage to lawns or gardens, damage caused by sewer backup, or stolen jewelry. Be sure to ask the questions that are pertinent to your coverage needs, and take stock of the meaningful items you own. Keep documentation of these items, and update your home insurance policy as is necessary.
