{"id":18214,"date":"2024-05-23T08:00:00","date_gmt":"2024-05-23T12:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=18214"},"modified":"2024-05-23T09:44:14","modified_gmt":"2024-05-23T13:44:14","slug":"benefits-of-home-insurance","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/benefits-of-home-insurance","title":{"rendered":"6 Benefits of Home Insurance for Homeowners"},"content":{"rendered":"\n\n\n<p>Your home is likely one of the most expensive purchases you\u2019ll make in your lifetime \u2013 and it makes sense that you would want to protect this investment from damage. For that, you\u2019ll need home insurance, which protects you, your home, and your belongings in an emergency. However, did you know home insurance has more benefits than protecting your home against damage?<\/p>\n\n\n\n<p>Personal liability coverage, identity theft coverage, and additional living expenses are just some ways homeowners insurance protects you. Learn how to maximize your insurance policy below.<\/p>\n\n\n\n<section class=\"bg-white border-t border-b border-blacklight my-12 md:my-16 sticky md:relative top-0 md:top-auto z-10 md:z-auto alignwide  wp-block-zolo-block-toc \" aria-hidden=\"true\"><div class=\"wrapper relative max-w-2xl mx-auto md:py-8 flex flex-col flex-shrink-0 max-h-screen md:max-h-none\"><input type=\"checkbox\" id=\"toc-toggle\" class=\"hidden\"\/><label for=\"toc-toggle\" class=\"flex justify-between cursor-pointer md:cursor-auto py-4\"><div class=\"toc-title leading-normal font-medium m-0\">In this article<\/div><svg class=\"w-6 h-6 fill-current text-blue md:hidden transition-transform duration-150 ease-in-out\" viewbox=\"0 0 24 24\"><path d=\"M22 12c0-5.5-4.5-10-10-10S2 6.5 2 12s4.5 10 10 10 10-4.5 10-10zM6.9 10.9l1.4-1.4 3.7 3.7 3.7-3.7 1.4 1.4L12 16l-5.1-5.1z\"><\/path><\/svg><\/label><nav id=\"toc-nav\" class=\"zolo-toc-nav max-h-0 md:max-h-full overflow-y-auto scrollbar-hidden overscroll-none\"><ul class=\"zolo-toc-list my-4\"><li><a class=\"entry-title no-underline hover:underline\" href=\"#why-homeowners-need-home-insurance\">Why Homeowners Need Home Insurance<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#coverage-for-your-home\">Coverage for Your Home<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#coverage-for-your-belongings\">Coverage for Your Belongings<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#protection-during-natural-disasters\">Protection During Natural Disasters<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#personal-liability-coverage\">Personal Liability Coverage<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#protection-against-identity-theft\">Protection Against Identity Theft<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#financial-support\">Financial Support<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#how-can-you-make-the-most-of-your-home-insurance-coverage-benefits?\">How Can You Make the Most of Your Home Insurance Coverage Benefits?<\/a><\/li><li><a class=\"entry-title no-underline hover:underline\" href=\"#homeowner-insurance-offers-peace-of-mind\">Homeowner Insurance Offers Peace of Mind<\/a><\/li><\/ul><\/nav><\/div><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-homeowners-need-home-insurance\">Why Homeowners Need Home Insurance<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/04\/bigstock-Damaged-House-From-Tree-1113138-1024x683.jpg\" alt=\"\" class=\"wp-image-23632\"\/><\/figure>\n\n\n\n<p>Even though home insurance is not mandatory by law in Canada, most <a href=\"https:\/\/www.zolo.ca\/blog\/how-do-mortgage-payments-work\">mortgage<\/a> lenders will require you to obtain insurance coverage for the entire replacement value of your home. Whether you own your home outright or not, homeowner&#8217;s insurance is vital to a sound financial plan. Without it, you would be on the hook for all expenses related to damage, theft, personal liability, and even the total replacement of your home.<\/p>\n\n\n\n<p>Your insurance policy covers more than just the dwelling. It also covers your contents and any other structures on your property in the event of a fire, theft, vandalism, windstorms, or accidental damage. Also, home insurance covers you if someone is injured on your property or your identity is stolen.<\/p>\n\n\n\n<p>Your insurance policy refers to events that cause damage to your property as \u201cperils.\u201d Your specific policy may exclude certain perils from coverage or impose coverage limits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"coverage-for-your-home\">Coverage for Your Home<\/h2>\n\n\n\n<p>The main benefit of home insurance is financial coverage for your home during unexpected events. Your insurance policy protects you in case of a fire, vandalism, burglary, or water damage.<\/p>\n\n\n\n<p>For example, if you suffer the total loss of your home due to a fire, your homeowners insurance would cover the cost of rebuilding. That would include cleaning the site, designing a new home, and rebuilding.<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/what-does-home-insurance-cover\">What Does Home Insurance Cover?<\/a><\/p><\/section>\n\n\n\n<p>Your policy also covers other structures on your property, like a detached garage, guest house, or gazebo. However, they must be listed in your policy and are subject to policy limits.&nbsp;<\/p>\n\n\n\n<p>It\u2019s important to note the <strong>instances where home insurance may not cover you<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Overland flooding<\/strong> &#8211; Many insurance policies do not cover water damage from a source that is outside of your home, such as flooding or melting snow and ice entering your home. However, you can add flood insurance to your policy at an extra cost.<\/li><li><strong>Sewer backup<\/strong> &#8211; Your sewer can back up into your home due to heavy rain or a blockage in the sewer system. You can add sewer backup to your policy at an extra cost.<\/li><li><strong>Earthquakes<\/strong> &#8211; Most insurance policies don\u2019t cover damage to your home from an earthquake. However, you may be able to add earthquake insurance to your policy, depending on where you live.<\/li><li><strong>Preventable damage<\/strong> &#8211; Any damage that could be avoided with regular maintenance will not be covered by your insurance policy. For example, if your roof was overdue for replacement and leaks, causing damage to your home.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"coverage-for-your-belongings\">Coverage for Your Belongings<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/04\/bigstock-Young-Husband-And-Wife-With-Bl-297691687-1024x683.jpg\" alt=\"\" class=\"wp-image-23604\"\/><\/figure>\n\n\n\n<p>Not only does your home insurance cover the structure of your home, but it also covers your belongings. Personal property coverage, or contents coverage, will reimburse you for the cost to replace your belongings if they are damaged, lost, or stolen in a covered peril.&nbsp;<\/p>\n\n\n\n<p>Your personal property isn\u2019t just covered while it\u2019s at home. While you are away from home, your home insurance policy may cover replacing your personal belongings if they are stolen or damaged.<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/how-much-home-insurance-do-i-need\">How Much Home Insurance Do I Need?<\/a><\/p><\/section>\n\n\n\n<p>Your homeowner&#8217;s policy typically covers college students living in a dorm room. However, <a href=\"https:\/\/www.ratehub.ca\/blog\/tenant-insurance-university-students\/\">Ratehub<\/a> notes that if they live in an apartment, <a href=\"https:\/\/www.zolo.ca\/blog\/types-of-insurance\">tenant insurance<\/a> is affordable, as low as $12 per month, and covers third-party liability, and additional living expenses in addition to covering contents.<\/p>\n\n\n\n<p>Protected personal belongings are subject to policy limits. If you own valuables such as jewelry, bicycles, musical instruments, or sports equipment that exceed your policy limit, you can increase the coverage for these items through endorsements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"protection-during-natural-disasters\">Protection During Natural Disasters<\/h2>\n\n\n\n<p>Depending on the type of natural disaster, homeowners insurance may cover damage and loss of your home and personal belongings. Typical unexpected events that are covered include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Fire, including wildfires<\/li><li>Windstorm damage, including storms, hurricanes and tornadoes<\/li><li>Ice and hail damage<\/li><li>Lightning strikes<\/li><\/ul>\n\n\n\n<p>Some natural disasters, like overland flooding, earthquakes, and landslides, are not covered, but you may be able to purchase additional coverage. Working with your insurance provider is essential to determine what additional insurance you require.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"personal-liability-coverage\">Personal Liability Coverage<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/03\/bigstock-A-Man-Walks-Up-Stairs-With-Ice-352104941-1024x682.jpg\" alt=\"\" class=\"wp-image-23515\"\/><\/figure>\n\n\n\n<p>Liability coverage helps protect you if someone files a claim against you after sustaining an injury on your property, or if you cause damage to someone else\u2019s property. Additionally, it covers the cost of hiring an attorney to defend you against unfair claims. This type of insurance also pays for the out-of-pocket medical expenses incurred by the person injured on your property.<\/p>\n\n\n\n<p>Homeowners should have at least $1 million in liability coverage. However, if you have a pool, pets, or playground, <a href=\"https:\/\/isure.ca\/inews\/personal-liability-coverage\/\">iSure.ca<\/a> recommends a higher limit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"protection-against-identity-theft\">Protection Against Identity Theft<\/h2>\n\n\n\n<p>Unfortunately, identity theft is becoming more common. In 2022, the <a href=\"https:\/\/antifraudcentre-centreantifraude.ca\/annual-reports-2022-rapports-annuels-eng.htm\">Canadian Anti-Fraud Centre<\/a> (CAFC) observed $530.4 million in reported victim losses. Your home insurance policy may cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expenses incurred to recover your identity (the dollar amount will vary by insurance provider)<\/li><li>Access to a restoration specialist<\/li><li>Bank or credit card fees associated with fraudulent activity<\/li><\/ul>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/best-home-insurance\">Best Home Insurance in Canada<\/a><\/p><\/section>\n\n\n\n<p>Identify theft insurance does have its limits. For example, most home insurance policies will not <a href=\"https:\/\/www.thinkinsure.ca\/home-insurance\/identity-theft-insurance.php\">reimburse you for money lost<\/a> if someone fraudulently accesses your bank account and sends an e-transfer or money wire without your knowledge.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"financial-support\">Financial Support<\/h2>\n\n\n\n<p>Another benefit of homeowners insurance is financial support during unexpected events. If a covered claim forces you to leave your home, your home policy will cover additional living expenses. Additional living expenses are those above and beyond your everyday living expenses, for example, a hotel room or rental home.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-you-make-the-most-of-your-home-insurance-coverage-benefits?\">How Can You Make the Most of Your Home Insurance Coverage Benefits?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/02\/bigstock-Young-Couple-Reviewing-Invoice-249209005-1024x683.jpg\" alt=\"\" class=\"wp-image-23368\"\/><\/figure>\n\n\n\n<p>To make the most out of your home insurance coverage:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Read your policy to ensure you understand what is covered and what is not.&nbsp;<\/li><li>Ensure you have enough coverage for your personal property. Walk through your home and make an itemized list of valuable possessions and their replacement value.<\/li><li>Always save the value of your deductible in an emergency fund. If your deductible is $2,000, having that money on hand ensures you can move forward with additional home repairs and receive full coverage.&nbsp;<\/li><li>During an incident, keep a detailed, chronological record of everything that happens, and keep all of your receipts to ensure you receive the appropriate reimbursement from your insurance provider after you <a href=\"https:\/\/www.zolo.ca\/blog\/how-to-file-home-insurance-claim\">file a claim<\/a>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"homeowner-insurance-offers-peace-of-mind\">Homeowner Insurance Offers Peace of Mind<\/h2>\n\n\n\n<p>The benefits of home insurance are numerous. Ultimately, it offers peace of mind. If the unexpected happens, you and your family are covered, and your property is protected. On the other hand, without insurance, you must rely on your savings or charitable organizations for help.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Benefits of home insurance include protecting you, your home, and your personal belongings from natural disasters, liability and theft<\/p>\n","protected":false},"author":112,"featured_media":23760,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"guide":[],"class_list":["post-18214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/18214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/112"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=18214"}],"version-history":[{"count":12,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/18214\/revisions"}],"predecessor-version":[{"id":23768,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/18214\/revisions\/23768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/23760"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=18214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=18214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=18214"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=18214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}