You May Need More Homeowner’s Insurance
Sunday, July 7th, 2013
After the absolutely devastating flood that hit Calgary, the title of this post may seem self-explanatory, and indeed, it is: the unforeseen happens, property can be wiped out with little warning and even less that you can do about it, and rebuilding is expensive. Yet, so many people have less insurance coverage than they should on their home and contents.
A standard homeowner’s policy will insure the cost of the home (not the cost you paid for it – that included the price of the land – but the amount to rebuild the property) and the contents within. It is important, however, to conduct an inventory to be sure, should the worst case scenario happen, you have sufficient coverage, rather than just assuming the standard amount will be fine. Have an extensive collection of something, or some specialized equipment? Make sure it’s covered. Bumping up the amount of coverage often incurs an insignificant increase in premiums, even when increasing by thousands of dollars.
Same goes for personal liability, which covers you and your family for property damage or injury inadvertently caused against others. Most insurance brokerages will only write policies with at least $500,000 in coverage, and $1 million is the standard low-end recommended. In this day and age, though, $1 million wouldn’t go that far in the event of a serious lawsuit or major accident. Increasing liability coverage to $2 million, $3 million, even $5 million, will hardly affect your monthly premiums while giving much greater protection.
Homeowners insurance policies can range from comprehensive (the most coverage, with the highest premiums) to ‘no frills’ (the least coverage, with the lowest premiums). Compare all of your options, and shop around. Some insurance companies offer additional perks, like emergency babysitting services or legal assistance, while others are bare bones. If we’ve learned anything recently, it’s that disaster can indeed strike, and unexpectedly. For your and your family’s sake, review your policy and be sure it will protect you when you need it most.
