Right here’s an attention-grabbing truth: It wasn’t till 2015 that Canadians had entry to flood insurance coverage. As a substitute, householders and renters needed to depend on the catastrophe monetary help applications supplied by the federal government. Immediately, most house insurance coverage suppliers provide some kind of freshwater flood optionally available safety. (To search out out if you happen to want flood insurance coverage, learn this text.)
6. MYTH: My house insurance coverage solely covers the home.
FACT: Residence insurance coverage insurance policies cowl your own home and its contents. Insurance coverage additionally covers any constructions on the property (your shed, indifferent storage), further residing bills you could incur if the home is uninhabitable, and private legal responsibility exposures you could face.
For condos, insurance policies additionally cowl unit proprietor enhancements and a few assessments made in opposition to you by the condominium company. Just remember to have an intensive understanding of what it covers. To study extra about what condominium insurance coverage covers, learn the MoneySense overview of condominium insurance coverage.
7. MYTH: Residence insurance coverage covers the market worth of my home.
FACT: Residence insurance coverage doesn’t cowl market worth, solely the rebuilding or alternative worth of your own home. If your own home burns down, the aim of house insurance coverage is to cowl the prices required to rebuild the home because it was earlier than the loss. Rebuilding worth is usually decrease than market worth as a result of it doesn’t embrace the worth of the land. Again to the instance of your own home burning down, the land continues to be there so your insurance coverage doesn’t have to “change” the land. An insurance coverage coverage can usually embrace prices to scrub up the particles, reminiscent of after a hearth.
8. MYTH: Residence insurance coverage covers earthquakes.
FACT: Your own home insurance coverage covers earthquake injury solely is you bought an “earthquake rider” in your coverage. These are most significant in British Columbia and Quebec. Some suppliers, like Sq. One Insurance coverage, robotically embrace earthquake safety of their coverage.
9. MYTH: Insurance coverage is cheaper for older, inexpensive properties.
FACT: Insurance coverage tends to be costlier for older homes. There’s a larger probability that one thing will go flawed, and it’ll price extra for the insurer to repair it. Additionally, the weather of many older homes, reminiscent of plumbing, usually tend to fail than these of latest properties with upgraded pipes and supplies.
10. MYTH: Insurance coverage covers damages attributable to termites and different bugs.
FACT: Often not. Just remember to know the way your insurance coverage coverage treats this and other forms of harm.
11. MYTH: Condominium companies present insurance coverage that covers my condominium.
FACT: Condominium company insurance coverage will cowl the general constructing construction, its exterior finishes, roof, home windows and customary areas, like elevators and hallways. It doesn’t cowl the contents of your private condominium, its upgrades and third-party legal responsibility do you have to trigger injury to different condominium models (i.e. by way of flooding).