While necessary, finding the best home insurance in Canada can be an overwhelming experience. Even if you have help to get your coverage and policy handled, you likely still have unanswered questions about home insurance. For example, what happens if my bathroom floods? Am I covered for that? (Probably, but only if your policy specifically includes this type of damage.) You’ll find many questions you need answers to, preferably before you ever need to make a claim.
We’ve looked at some of the top questions that homeowners ask when shopping or comparing home insurance policies in Canada. Here’s what we found:
Does Having a Fireplace Increase Home Insurance?
Depending on the type, having a fireplace or woodstove in your home can increase your annual home insurance premium by as much as $100 per year. Additionally, if you have a wood-burning stove or fireplace, your insurance provider may require it to pass a Wood Energy Technology Transfer (WETT) inspection before approving your coverage.
Will Home Insurance Cover Termite Damage?
A common myth regarding home insurance coverage is the belief that you’ll be protected in the case of termite damage. Unfortunately, home insurance does not typically cover termite damage or removal.
The main reason why insurance providers tend to exclude termite damage from homeowners insurance coverage is that it can generally be avoided through routine maintenance that every homeowner should take to protect their property. However, if you are faced with termites, there are two scenarios in which insurance coverage may apply: the complete collapse of the home or an infestation caused by an outside risk or factor.
Does Home Insurance Cover Flooding?
One of the most frequently asked questions about home insurance is related to flood damage. If you have basic home insurance coverage, you likely aren’t covered for certain types of flooding. Instead, you’re most likely covered for water damage, but these two types of water-related insurance coverage are very different.
Water damage can occur due to a plumbing system rupture, malfunctioning appliance, overflowing sinks, or a broken water main. Flooding happens due to natural causes — like overflow from rivers or bodies of water — and involves outside water entering your home. This type of water damage is usually not covered by a standard home insurance policy in Canada.
Unless you live on a floodplain or in a city that regularly sees this type of natural disaster, you aren’t seen as ‘at-risk’ and your insurance policy won’t include this coverage by default. However, you may be able to add this coverage to your plan for an additional cost. Your insurance company will review any potential risks with you and help you assess the best way forward.
Is My Hot Water Heater Covered Under Home Insurance?
Water heaters are typically covered by home insurance policies depending on their age. However, if your tank is over ten years old, it may not be covered. Like most insurance policies, you will not be covered if you do not maintain your home and take appropriate preventative measures.
It’s essential to perform regular home maintenance to prevent incidents that your home insurance policy may not cover.
Regardless, it’s good to confirm your coverage with your insurance provider. You may have coverage for damage caused by a hot water tank but not for the cost of equipment replacement.
Does Home Insurance Cover Falling Trees?
Yes, home insurance does cover falling trees, minus a few caveats. As with any home insurance claim, there will be an investigation into why the tree fell in the first place. If the tree in question were generally healthy, you would be covered. However, if the tree was damaged or rotten and general maintenance or care could have prevented the fall, you will likely not be eligible for compensation.
If your neighbour’s tree fell on your house, any damage caused would be assessed for coverage under the terms of your insurance policy—not your neighbour’s.
Does Home Insurance Cover Lost Jewellery?
Typically, your homeowners insurance policy will cover lost jewellery, subject to the terms of your policy’s claim limit and the specified deductible. If you’ve lost some diamond earrings with more sentimental value than monetary value, you might want to rethink making a claim, given you could be stuck paying your deductible.
You want to ensure that you have appropriate coverage for your most valuable belongings, and you should review your coverage levels at least annually or whenever you acquire costly new items.
Will Home Insurance Cover Tenant Damage?
If you are a landlord or property manager, you need a suitable insurance policy to protect your property. One option is rented dwellings insurance, which will cover the structure. Dwelling insurance covers accidents, thefts, or natural disasters.
To protect yourself further from tenant damage, you can look into additional coverage or policies, such as protection from loss of rental income or personal property coverage.
Does Home Insurance Cover a Water Main Break?
Most home insurance policies in Canada, even the most basic, include water damage coverage, such as that arising from burst or frozen pipes. However, like all insurance, some situational issues could limit your coverage. One of the main reasons your loss may not be covered is if you left your property unattended for more than one day without turning off your water supply or having someone check on your property regularly.
Thoroughly review your policy to understand what it covers, and make sure you know the requirements to maintain your coverage when out of town.
How Much Is Home Insurance?
According to Ratehub.ca, the average cost of home insurance in Canada is about $960 per year. However, the costs vary from province to province. Ontario homeowners pay around $1,250 each year. In British Columbia, the average price per year is $924. In the Atlantic provinces, the cost hovers around $780 per year.
Many factors determine the cost of your home insurance policy, like the size of your home, the frequency of local natural disasters, and the amount of crime in your community. To get a better idea of what your home insurance may cost, try a comparison site like Ratehub or LowestRates.
Can I Change or Cancel My Home Insurance at Any Time?
A common home insurance question is related to changing or cancelling your policy. If you are moving to a new property or have experienced a significant life change, you may need to change or update your home insurance policy.
The best time to change or cancel your policy is during your annual renewal, but if you need to make adjustments before that, you can. However, to do so, you might have to pay a ‘short rate’ penalty, which is usually a percentage of the total insurance premium of the year.
The same fee would come into play if you were to cancel your home insurance before the end date. Look into the pros and cons of the cost to cancel versus the money you might save by moving to a new provider. Whatever you decide, ensure you do not end up with a coverage gap that will leave your home without emergency protection.
Do You Pay Home Insurance Monthly or Yearly?
Home insurance can be paid monthly or annually, depending on your budget. If you can afford to pay your insurance premium annually, you might receive a small discount on the price.
How Can I Save Money on My Home Insurance?
Another common home insurance question is how to save money on home insurance. You can reduce your home insurance premium by paying annually instead of monthly, bundling your policy with your car insurance, increasing your deductible, and avoiding small claims.
When Do I Need Home Insurance When Buying a House?
If you are buying a home with a mortgage, you must provide proof of coverage to your mortgage lender before taking possession of your home. Therefore, you should have coverage that starts the day you get the keys. You do not want to leave even 24 hours without coverage and risk being without financial support should an emergency arise.
Where To Get Home Insurance in Canada
There are many different home insurance providers in Canada. Many people start by looking for quotes online; however, it can be tedious to search and compare rates yourself. A licensed broker can sell policies from several different insurance companies and help you get the best price.
Ultimately, home insurance in Canada comes down to many factors, and each policy and provider holds different standards. The best thing you can do for your coverage is to research and review your policy each year to ensure you have an affordable rate and that all your bases are covered.
