Why invest in home insurance?In Ontario, homeowners insurance is not required by law. But when closing on a property, most banks require proof of home insurance before advancing on the mortgage. So unless you can buy your home outright without a loan, you could say home insurance is a crucial piece of the purchasing puzzle. Let’s say your property burns down after just one mortgage payment. If you don’t have insurance, what’s stopping you from not paying back the loan? This is why the bank wants to maintain an ‘insurable interest’ on your home at all times. Any loss or damage to this property would affect them financially. Home insurance protects their interest by ensuring the lender is reimbursed, even if the policy holder violates the conditions of the policy. Aside from satisfying the bank’s requirements — home insurance is purchased for a number of additional reasons, including the following:
- Protects the home from a range of hazards, including fire, flooding, vandalism and theft
- Covers personal liability should someone be hurt on your property as the result of an accident or negligence
- Includes temporary housing and additional expenses coverage should you need to stay somewhere else following a disaster
Terms you should knowThe insurance world is full of terms that help shape our understanding of coverage options and limitations. To get a better grasp of your policy, it’s helpful to know the terminology. Not only will this help you communicate more effectively with your insurance advisor, but will help you make more informed decisions, too.
Actual Cash ValueThis is the estimated cost to rebuild your home. It takes into account the age of your property, market depreciation and general wear-and-tear. This estimate is the maximum amount of money you’ll receive towards the reconstruction of your home.
DeductibleThis is the amount of money you must pay when putting forward a claim. In other words, it’s the portion of loss you’re responsible for. It’s important to clarify that only one deductible applies per claim. Let’s say your home suffers a serious flood, and all your personal items are destroyed. Not only will your house and belongings need to be replaced — but you’ll also need to stay in a rental while your home is being reconstructed. Even though multiple coverages are activated by the claim, you’ll only have to pay one deductible.
ExclusionsThese are the items which are not covered under your insurance policy. Exclusions are typically categorized into three main types: policy, property and loss of use and liability. Under policy exclusions, your claim could be denied if you knowingly misrepresented facts about the property or conducted illegal activity from your home. Property and loss of use exclusions could include damage due to coastal flooding or failure to report a change in occupancy. Meanwhile, liability exclusions may include damage from war or acts of terrorism.
Types of home insurance in OttawaOegema Nicholson in Ottawa offers various types of home insurance. In Canada, there are three policies available.
Named perilsThis is a basic policy that will protect your home from a specific list of ‘perils’. Water damage, fire and theft are all covered under this type of policy. At Oegema Nicholson, we offer some of Ontario’s most affordable premiums. But should you feel this basic coverage is not adequate, our friendly insurance agents would be happy to provide you a quote for more advanced coverage.
ComprehensiveThis type of policy protects against everything, except for a list of exclusions stated in your policy documents. Comprehensive coverage is the highest level of protection offered by Oegema Nicholson. Although this policy covers almost every peril imaginable, it’s still important to know there may be optional coverages. Check if things like jewelry or supplemental dwellings are covered.
Broad formBroad form is a good compromise between named perils and comprehensive policies. It bridges the gap by offering comprehensive coverage on the most valuable aspects of your plan, but provides basic perils coverage on personal items.
Why trust Oegema Nicholson?At Oegema Nicholson, we believe clients should be treated like family. Proudly serving the areas of eastern Ontario and western Quebec, our mission is to connect customers with high-quality insurance policies at affordable rates. Our friendly team in Ottawa is committed to ensuring your best interests, which means we work hard to represent you. Whether you require basic insurance on your first home or complex coverage for your summer cottage, rely on our expertise to help protect your most valuable assets. For more information on home insurance, call us at 613-224-1455 or contact us here.
Most insurers offer monthly payments with a financing fee normally added. 2, 3, 4 pay options(possible fee) are also available in addition to 1 pay with most insurers.
Some policies would cover a leaky roof – depending on the cause of the damage.
Some policies would cover foundation repair – depending upon the cause of the damage.
Mold is not covered under a homeowners policy
Home insurance is not mandatory, however if there is a Mortgage on the Property – the Mortgagee (bank/financial institution) would require a homeowner to carry insurance on the dwelling to qualify for financing
Home Insurance is to cover direct physical loss or damage as a result of an insured loss. Insured losses are determined by the type of policy purchased - available are Comprehensive Form (All Risks – subject to exclusions). Broad Form (All Risks on Building, Named Perils on contents). Basic Named Perils (Named Perils on both building and Contents). A Deductible applies to most losses - typically $1000.
Personal Liability coverage is for Liability arising out of the ownership or personal use of premises insured. Liability for negligent Actions causing bodily injury or property damage – worldwide.
Personal Property, Additional Living Expenses, Personal Liability
Dwelling, Detached Outbuildings, Personal Property, Additional Living Expenses Personal Liability
While it's true that owning your property outright removes the legal obligation to carry home insurance, it is still highly advisable to have coverage for peace of mind and protection. Unexpected events can occur, and having insurance safeguards your investment and belongings. Home insurance can save you from significant financial burdens if accidents or damages occur. Additionally, certain insurance providers offer discounts for homeowners who have paid off their mortgages. Protect your home and assets with Ottawa home insurance, ensuring you have comprehensive coverage tailored to your needs.
Selecting the ideal level of coverage for your home and family involves considering your unique circumstances and property. There is no one-size-fits-all solution. It's crucial to assess your specific needs and risks. Factors such as property size, location, contents, and personal preferences play a significant role in choosing the right protection. Consulting with an experienced insurance professional can help you navigate through various options and tailor a home insurance policy that offers comprehensive coverage for your individual requirements. Safeguard your home and belongings with a personalized insurance plan that ensures peace of mind for you and your loved ones.
Comparing multiple home insurance quotes offers several advantages when seeking coverage for your property. By utilizing a broker, you can conveniently access multiple quotes from different insurance companies in one place. Each insurer evaluates risks differently, making it essential to assess the benefits and coverage options various providers offer. Through comparison, you can identify the best-suited policy that aligns with your specific needs and budget. By considering different quotes, you can make an informed decision, ensuring you receive the most comprehensive and cost-effective home insurance coverage tailored to your circumstances, providing security and peace of mind for your valuable investment.
For a well-informed home buying process, it's best to contact your insurance broker before making an offer on a property or before the expiration of any relevant conditions. With today's insurers becoming more selective with risks, securing insurance early is crucial, especially in competitive markets. In Ottawa, insurers consider various factors based on the property's age and specifications. As experienced brokers, we assist buyers in gathering essential details about the prospective home, including plumbing, electrical systems, roof condition, and other relevant information. By collecting this data, we can present multiple insurance quotes to help you make an informed decision, ensuring the most favorable coverage options.
The process of getting covered can be expedited, potentially taking just one business day without complications. However, it is wise to be proactive, allowing time for any necessary communication with your broker. Waiting until the last moment may cause delays. Ideally, providing your broker with a week or two's notice ensures a smoother process. By being proactive, you can secure the necessary coverage and have your insurance binder ready before the purchase closing date. This approach offers peace of mind, ensuring a timely and seamless insurance arrangement, while allowing room for any adjustments or additional information required for comprehensive coverage.
Home replacement cost refers to the total amount your insurance provider will cover to completely rebuild your dwelling if it gets destroyed. It encompasses expenses beyond the property's resale value, including skilled labor fees, debris removal, and compliance with updated building codes. Factors like recent renovations and upgrades may increase the rebuilding expenses beyond the initial estimates. Homeowners should ensure their insurance policy covers the full replacement cost, guaranteeing financial protection in case of a catastrophic event. This ensures that you can rebuild your home to its previous state, regardless of any inflation or changing construction costs.
Home insurance and condo insurance serve distinct purposes. While homeowners need insurance to protect their entire property, condo insurance is essential to safeguard individual units and personal belongings, along with offering personal liability coverage. Condo associations typically hold a master insurance policy that covers shared areas and the building's structure. As a condo owner, you are generally responsible for everything within your unit's walls. For instance, the master policy may cover the drywall and primer, while your condo insurance would protect the paint you apply to the walls. Having condo insurance ensures comprehensive coverage tailored to your specific unit and belongings, offering peace of mind for condo owners.
High-risk home insurance in Ottawa applies to individuals with specific characteristics that may present greater challenges in finding adequate coverage. Factors that may label you as high-risk include being previously cancelled by an insurer due to non-payment or other reasons, having a high number of claims, residing in rural areas, living in an older or heritage home without electrical or plumbing upgrades, owning an empty home, or having multiple mortgages. Although being designated as high-risk doesn't prevent you from obtaining home insurance, it may result in reduced coverage, higher premiums, or limited payment options. Our team can assist you in securing suitable coverage tailored to your needs and family requirements. Request an Ottawa home insurance quote online to find the ideal protection for your home.