Your house isn’t just your home, but also a valuable investment that needs protection. By choosing the right Homeowners Insurance Calgary, you can safeguard your house from events like theft, fire, or a natural disaster. However, it can be overwhelming to choose your coverage. The last thing you want in case of a disaster is learning that you aren’t sufficiently covered. On the flip side, if you choose to over-insure your home, you’ll end up paying a lot in premiums. We bring you a comprehensive guide to help you make an informed decision. You can be assured that you aren’t paying too much for your policy and your home is adequately protected.
What Does Home Insurance Cover?
Typically, homeowners insurance Calgary covers your property and the belongings inside your home. In some cases, it also covers additional living expenses (ALE) if you are unable to live in your house while it is being repaired. A lot of policies also cover liability in case someone is injured on your property. These are the four basic coverages that you should have for peace of mind.
What are the Levels of Coverage?
Along with choosing what you want to cover in your policy, you also need to decide on the level of coverage. This will determine how much you’ll get paid by your insurer to repair or replace damaged items. There are 3 main levels of coverage:
1. Actual Cash Value
This will cover the damages minus the depreciation of your home and its valuables. For instance, if your computer gets damaged by a covered peril, the insurer will pay for the computer’s worth today, not how much money it will require buying a new one as its value has depreciated.
2. Replacement Cost
This policy will cover the damage caused by a covered peril and will not minus the depreciation. So, in the case of your computer, your insurance provider will cover the cost of a new computer, irrespective of the depreciation of your damaged computer.
3. Guaranteed or Extended Replacement Cost
This is the policy that offers the most protection and is also the most expensive. It will cover the cost of the damages, even if the cost is higher than your policy limit.
Things to keep in mind when choosing coverage for your homeowners insurance Calgary:
• Your real estate value and the cost to rebuild your home are different. Don’t consider the cost of land when you’re choosing your coverage. Just look at the costs involved in rebuilding your home.
• It’s important to remember that it will cost more to rebuild your home today than what it cost originally. Also, if your area is affected by a flood or a storm, supplies and labour will be in high demand, costing even more to rebuild.
• If your building codes have been updated, it might cost you extra money to rebuild your home.
• If you have any expensive items like jewellery or antiques, you can consider adding a rider or an endorsement to cover the costs of replacing these valuables.
• You can also opt for an extra liability or umbrella policy that includes liability and damage to your property. Based on where you live, you should also consider insurance for perils like flood, earthquake, and sewer backup.
Knowing what to cover can make a big difference in your homeowners insurance Calgary prices. Use this guide to get the best homeowners insurance rates in Canada.
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