Whether you're a renter, homeowner, or condo owner, understanding the complexities of home insurance is essential. It's crucial to have a clear grasp of the coverage and exclusions included in your policy.
These are some essential points to keep in mind when comparing insurance policies.
1- Condominium Insurance
Were you aware that your condominium insurance coverage may not be adequate? Condo owners typically have two primary insurance policies:
- This coverage protects your personal belongings and provides liability insurance. It safeguards your fellow condo owners in the event of damages for which you are responsible.
-
The second type of coverage is provided by the condominium corporation and protects the building itself. Recent regulations require the corporation to create a detailed description of each unit. If you have made renovations, ensure that they are accurately reflected in this description. This will help prevent your insurance claim from being denied in the event of damage.
2- New Roommate
If your spouse or a close relative is moving in, be sure to inform your insurance company. Even if you are the sole owner, your policy should be updated to include the new resident. This will ensure that they are covered by the liability portion of your policy and that their personal belongings are protected.
3- Water Damage
Some water damage is automatically covered by home insurance policies, while other types of water damage may require additional coverage. Damage caused by sewer backups, water infiltration, or flooding is typically covered by supplemental policies.
4- Title Insurance
Imagine this surreal scenario: you return from a trip abroad to find someone has changed your locks and is living in your home as if it were their own. As unbelievable as it may sound, this happens more often than you might think. In today's digital age, where personal information can be easily compromised, no homeowner is immune to real estate fraud. Fraudsters target properties with no mortgage, impersonate the owners, and sell your home without your knowledge. Title insurance provides peace of mind by protecting you from this type of fraud. It also safeguards you against any encumbrances or special clauses that may affect the sale of your property.
5- Renting out your cottage could impact your insurance police
If you plan to rent out your newly purchased cottage in the Laurentians to help cover costs, it's important to review your insurance policy. Many insurers have specific requirements for rental properties. Whether you're using a platform like Airbnb or renting informally, you should always inform your insurer of your rental plans.
Please note that tenants typically have their own liability insurance coverage when renting a cottage or other type of property. It is advisable to request a copy of the tenant's home insurance policy prior to renting out your cottage.
6- Monitored Alarm System
Many insurance companies offer discounts if your home is equipped with a monitored alarm system. Not only will this provide you with peace of mind while you're away, but it may also result in significant savings on your insurance premiums. Be sure to mention this when renewing your policy. Some insurers may even require a monitored alarm system as a condition of coverage.
To explore your options further, consult with a Proprio Direct real estate broker. Leveraging their professional network, they can connect you with the insurance provider that aligns with your specific requirements.
