Let’s Talk Home Insurance

Do I need Home Insurance?
If you own your home (or condo) outright you are not legally required to have home insurance. However, if you are applying for a mortgage your lender will require you to purchase housing insurance before the closing date. 

If you rent your home you are not legally required to have renter’s (tenant) insurance but often it is a term of your rental contract.

Do you know what your home insurance policy should cover? (depending on the policy)

⭐️ Personal property: If your home is damaged by anything covered by your policy, did you know your personal property is also covered?
⭐️  Your personal property is also covered when you travel.
⭐️  Personal property stolen from your car: Any personal items stolen from your car are covered by your home insurance.
⭐️ Liability: Home insurance includes liability insurance. If someone is injured in your home and takes action, liability insurance provides coverage. This insurance can extend to some you are responsible for injuring, even if it didn’t happen in your home.
⭐️ Accidental damage to someone else’s property. 
⭐️ Some home insurance policies may also cover you for liability against any cyberbullying that originates from your property.

Here are some things that your home insurance may not cover. Generally, home insurance won’t protect you from predictable events.
✘ wear & tear
✘ an issue due to lack of maintenance
✘ anything that is not specifically listed
✘ home-sharing activities (Air BNB) will require separate insurance
✘ if criminal activity is involved
✘ if you are using your home for  business purposes
These are things you need to disclose to your insurance agent to make sure you have the coverage you need.

Do I need condo insurance? 
It’s virtually the same as home insurance and protects the inside of your unit and storage locker. The Condominium’s insurance covers the outside of the building and common areas. The condo’s insurance should also cover damage to your unit & personal belongings AND damage to other units by something that has happened in your unit. Some condos cover parking spots, but it’s worth it to look into your condo’s specific policy.

I’m renting, do I really need tenant insurance?
Once again it’s more or less the same as home & condo insurance. You are not legally obligated to get it but it may be a condition of your rental agreement.

When shopping for home insurance, compare policies carefully to see which insured perils are covered and which are not. Discuss your needs with an insurance agent or broker, and ask about purchasing extra coverage for valuable items. Be sure to check with your insurance company or insurance representative to understand if this liability is covered in your policy and to what extent.

This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative, or insurance representative.