House insurance in Nanaimo is a must-have, as it is just about anywhere else in Canada. Although it’s not mandated by law, it can certainly give you peace of mind to know that your house is adequately protected in case of an unforeseen disaster.
House insurance works like any other kind of insurance – you pay a monthly premium to secure coverage with an excess due should you claim. It’s important to understand, however, what is and what is not covered by house insurance.
What Is Covered?
House insurance in Canada typically provides cover to your house and its contents and, in the case of catastrophic damage to the structure, will pay out whatever it would cost to rebuild in terms of labour and materials.
You will not be able to claim the resale value of the house from insurance, which typically incorporates other factors that cannot reasonably be included in the rebuild value – such as the quality of the neighbourhood, the lot size, additional detached features such as sheds or swimming pools, besides others.
House insurance typically also typically includes liability coverage, which protects you from financial ruin should you be sued for someone getting injured on your property or for someone else’s property being damaged by your property – such as a loose brick falling on someone, for example.
What Is Not Covered?
Maintenance costs are not covered by insurance. This could include roofing that needs refurbishing or carpets that need replacing. However, a well-maintained home (at your expense) will likely lower your premiums.
Pest damage, such as that caused by termites or rodents, is also not covered, since pest management is considered to be part of basic house maintenance.
While basic water damage from a burst pipe is covered, catastrophic flooding from a tsunami, for example, is not. This would require comprehensive flood insurance, which you should specifically get if you’re in a flood-risk area. Normal house insurance does not include this automatically.
Another added insurance you might want to add is earthquake insurance, which can protect your home from earthquake damage and even landslides. This is not, however, included in standard house insurance and therefore will not be covered unless specifically requested.
Worth noting is that, if you run a business from home and damage occurs to the house as a direct result of the business, the damage will not be covered. This would require business insurance, which is a separate thing.
When buying a house and making your investment secure, let the expert consultants at Nowik Mortgage help you make sure you have comprehensive house insurance in Nanaimo that suits your needs. Contact us now for more!