Insurance: a protection to consider when buying a home
Mortgage and life insurance
In case of death of the owner(s), a type of temporary life insurance, called mortgage insurance, insures the mortgage balance. This type of insurance is especially recommended for families with small children who cannot risk losing their home if one of the family’s supporting members were to die. It is the safest way to protect the survivors from forced relocation if they have difficulty making the monthly mortgage payments.
Unfortunately, no one is safe from the possibility of fire. It is therefore imperative to protect your home against such an unfortunate incident. If there is a mortgage on the house, your insurance policy must cover the total replacement value of the building. This replacement value should be regularly updated to reflect the increases in construction costs, and thus allow you to recover your investment in the event of a fire. Insurance policies are renewable every year. When you are building or rebuilding a home, take out insurance for the duration of the construction work as a security measure.
Personal liability insurance protects you against damage caused by a third party or visitors, as well as against possible legal proceedings. Most insurance policies for homeowners occupants cover liability as well as fire protection. They may also cover loss by theft, destruction, in whole or in part, of movable property, and protection against damage caused by adverse weather conditions and Mother Nature’s instabilities.
Movable property is covered by your insurance policy as a percentage of the insured value of the house. Most insurance companies offer this protection based on the full replacement value. It is therefore important to ensure that the total amount is sufficient to replace your personal property.
Other items to consider
Most insurance policies impose a maximum amount for specific property such as jewelry, furs, silverware, etc.. This amount may be increased by means of an endorsement to the policy. Discuss it with your insurance broker.
Furthermore, trailers, boats and rented property are examples of property that can be added to your home insurance policy. Each policy is unique according to individual requirements. Your broker will take the time to analyze your needs, answer all your questions and explain the contents of your insurance policy to you. If you have an alarm system installed, you will enjoy important premium reductions.
Title insurance can save you money and worries
What could possibly happen to the titles of your dream home? Unthinkable problems even the most conscientious notaries cannot be held responsible for. A fraud, a fake, an error in the certificate of location, an error or omission by an officer of the rights registration office, a violation of the zoning law or any other default of the title can delay or even cancel the transaction. Even worse, the problem can surface several years later. Title insurance protects your investment while saving you money and can eliminate undue delays in your transaction. The premiums are very reasonable and payable only once. It protects you as well as your heirs from loss, damage and legal fees. In short, it will reduce your transaction cost while increasing your protection. Moreover, you can move in with peace of mind. Canadians have been doing so since 1991. Be sure to visit the Insurance Canada website for additional information on insurance protection for your home.