When assessing house insurance, every Nanaimo homeowner tries to understand what is and isn’t included in their policy. But it is not easy, we know.
With so many options available and the complicated legalese that follows, it is challenging to assess whether you’re fully protected, leaving you vulnerable.
Today Nowik Mortage’s experts discuss what’s typically covered, what’s excluded, and whether you can negotiate for more comprehensive protection.
Typical House Insurance Coverage
House insurance typically covers several key areas to protect your property from common risks. These may include:
- Protection Against Damage: Standard policies include coverage for damage caused by fire, windstorms, hail, and even theft or vandalism. If your home suffers structural damage or the contents inside are stolen or destroyed due to these risks, your insurance will help cover the costs of repairs or replacements.
- Liability Coverage: Liability coverage is another standard part of house insurance. It protects you if someone gets injured on your property, be it a guest or passerby. In such cases, your insurance can cover legal costs and any medical expenses related to the incident.
- Additional Living Expenses: If your home becomes uninhabitable due to an insured event in Nanaimo, house insurance often includes temporary accommodation coverage. This can help pay for hotel stays, meals, and other living expenses while your home is being repaired.
General House Insurance Exclusion
Now that we have discussed some standard components included in home insurance, let’s look at standard exclusions and how they leave you vulnerable:
- Flooding and Water Damage: Standard house insurance policies usually exclude damage from flooding. This includes damage from excessive rain, overflowing rivers, and sewer backups. Nanaimo is known for its heavy rain, so discuss a separate policy or an endorsement to cover water damage with your broker.
- Earthquake Damage: Earthquake coverage is often excluded from standard policies as well. Nanaimo is located in a region where 1200 minor earthquakes occur annually and the Regional District of Nanaimo council states, “There is a one in three probability that a major, damaging earthquake will occur in the next 50 years.” That’s reason enough to talk to your broker about additional coverage.
- Wear and Tear: House insurance generally doesn’t cover damage resulting from normal wear and tear. If your roof is leaking because it’s old or your foundation is settling over time, you’re like not covered for what can transpire as a result. Regular maintenance from reputable, certified contractors is essential to avoid the costs of fixing these problems out of pocket.
Negotiating for More Coverage
The good news is that many of these exclusions can be negotiated or added to your policy, giving you broader protection. For example, you can opt to purchase additional coverage for floods, earthquakes, and sewer backups. While this may raise your premium, it can be worth it for the peace of mind that comes with knowing you’re fully protected from potential risks if and whenever they arise.
Get in touch for tailored house insurance advice from Nowik Mortgage’s Nanaimo experts today!