Buying or Building a New Home? Here’s What You Need to Know

Whether you’re buying a home or building one from the ground up, becoming a homeowner is a cause for celebration. And between paint colours, furnishings and appliances, there are a lot of decisions you’ll have to make - but perhaps none more important than choosing the right insurance. So before you go popping the bubbly, here’s a rundown of the basics.

• Your home is vulnerable to fire, flooding, theft and other risks, no matter how well it’s constructed. Without adequate coverage, you might not be able to recoup your losses in the event disaster strikes. Also, if you require a mortgage, most banks will insist you have home insurance first.
• Generally, a home insurance policy will provide coverage for your home and what’s inside, as well as personal liability should someone injure themselves on the property. And, if you can’t live in your home temporarily because of a fire or other insured loss, additional living expenses are typically covered as well.
• When it comes to home insurance, one of the most important things you’ll have to figure out is what kind of policy you’ll need. There are several options, ranging from a “no frills” policy that offers basic coverage for homes, to a comprehensive policy that covers your home and contents for all risks (minus those specifically excluded). Speaking with an agent will help you determine which policy fits you best.
• Regardless of what you’re buying, you’re likely on the lookout for a good deal. When you’re shopping around for home insurance, find out what promotions and discounts may be available to you. For example, if you decide to bundle your auto and home insurance with the same provider.
• Some home insurance policies may not cover items such as computers, jewellery and artwork. Additional coverage is often available once you provide proof of the items’ value to your insurance provider. It is also worth your time to review your policy carefully as there may be exclusions and dollar limits on the coverage of specific items.

Your home is likely your biggest investment. Home insurance will help protect it and give you and your family peace of mind so you can rest easy.

Article courtesy of Johnson Inc. (“Johnson”). Johnson is an insurance intermediary specializing in home, auto and travel insurance, as well as group benefits. For more information about Johnson, go to www.johnson.ca (Quebec residents please visit: www.johnson.ca/quebec).

This article is provided for your general information only. Nothing in this article alters the terms or conditions of any insurance policy. Read your policy for a complete description of coverage and contact your insurance provider or intermediary for coverage and policy details.