Understand your Home Insurance Coverage
Whether you are in the market for your first home insurance or you are concerned about increases in your insurance from a prior insurer, we will help you to find the affordable insurance protection that you need. At MBS Insurance, our brokers are committed to providing excellent customer service and will help you when you need to make an insurance claim. We partner with the best insurance companies in Canada and represent only financially stable insurance companies
Home insurance protects you from several physical damage risks such as fire, theft, hail, and windstorm as well as personal liability lawsuits. Funds paid into the insurance pool less any claims for losses that policyholders experience determine the premiums you pay for home insurance protection. Insurer’s calculation of the risks to your home also determines the premiums you pay. As everyone does not pay the same amount for home insurance, there are steps you can take to reduce your risk of needing to bring a claim, which will, in turn, reduce your premiums.
Enhanced Home Insurance Coverage
Many variables are considered by insurers when determining your home insurance policy rates. These include the location of your home, costs to rebuild, the age of your home, any special features, your home’s use, your claims history, and credit history. We also take into consideration your age, whether you are mortgage-free, and how long you have resided at the address. See below for a detailed explanation of these variables.
There are higher risks in some neighbourhoods or communities that lead to higher premiums. These risks include areas with higher crime rates, infrastructure concerns, adverse weather conditions, or there is too much distance and isolation from other homes. Conversely, being closer to a water source (such as a fire hydrant) and fire station will often lead to a reduction in premiums.
Your insurance premiums depend in part on the cost to rebuild your home. As a result, premiums are higher for a luxury home with high-end fixtures, materials, and valuables. Keep in mind that the rebuilding costs often differs from the home’s purchase price because it includes factors such as rising or falling construction costs and debris removal. However, it does not add the actual value of the land itself. Included in the price of rebuilding is the labour cost, building materials and accessibility of the property, as well as any special costs incurred from bylaws or hiring specialty contractors.
Newer homes typically have lower premiums because the plumbing, wiring, and roof are in prime condition. Older homes sometimes have inferior or degrading materials that may cause problems. If your home uses oil as its primary heat source and wood for a secondary heat source, you will also face a higher premium because of the risk of fire loss. Preventative measures such as a monitored home alarm system and installing a sump pump can help to reduce your insurance rates.
Homes with pools typically cost more to insure because of the added dangers and third-party liability risks. As well, homes with unique architectural features tend to cost more in insurance because they could be costly to replace or repair. The materials used to build your residence are also taken into consideration by insurers. Most homes have wood frames, but exterior siding can also play a part in the rating factors as some are more fire-resistive than others. Also, homes made entirely of wood, such as log cabins, are not only much more flammable but are also exceedingly difficult to rebuild and often require major reconstruction.
You may think there is only one way to use your home – by living in it, but there are a variety of ways people use their homes that can affect their house insurance in Edmonton. For example, vacant homes are more likely to be broken into and vandalized, so the premiums are higher. Homes used for business are also subject to a higher premium, as the assets of the company will also require protection under the policy. Many homeowners rent out a basement apartment or a room in the home as a source of income. Before doing so, check with your insurance broker on how this will affect your insurance.
If you live in a higher risk neighbourhood, you might face higher home insurance rates. Your claims history will also impact your premiums. On the other hand, if you have been a responsible homeowner for years, your insurer will tend to reward you with a lower rate. Many insurance companies offer discounts based on the number of years you have been claims free under your home insurance policy.
Your credit score also affects your insurance rates. If you have had financial difficulties or are having trouble paying your bills, you may be unable to maintain repairs and general maintenance on the home, leading to a higher risk of damage and claims.
Older owners who are mortgage-free and have lived in the home for a long time tend to have fewer claims. It may be viewed by the insurer that, because of these factors, you have more funds available for the proper upkeep of the home, which can reduce the risk of a significant claim.
The amount of insurance you require will affect your premium. For example, a luxury home will cost more to insure than a more modest home. A rider that insures high valued items separately will also cost more than otherwise.