How Does Home Insurance Work In Alberta?
Home insurance provides you with the financial protection you need. You never know when a thunderstorm, flood, or fire could damage your property. It covers your home and contents against damage caused by an insured peril.
There are a number of policy levels to choose from. You choose the plan that makes the most sense based on your needs and risk tolerance. Your payments increase for more protection and higher limits. For example, basic plans are more affordable than comprehensive.
If your home is damaged or you have a liability claim against your, file a home insurance claim. You pay your deductible, and your insurer will cover the rest up to your plan limit.
Is Home Insurance Mandatory In Alberta?
No. Home insurance in Alberta is not mandatory, but it is strongly recommended. There are too many threats to your home not to have coverage. Without a plan, you are putting your personal finances at risk. Plus, banks and other mortgage lenders will not give you a loan without proof of homeowners insurance. In this sense, it is required, unless you are mortgage free.
How Much Home Insurance Do I Need In Alberta?
As a general rule, you should have enough insurance to cover the cost of rebuilding your home. This amount will vary based on your home size and features. Your replacement value will be listed in your plan. Most mortgage lenders require you to be insured for at least the amount of your mortgage.
You should also insure your property against loss or injury. Liability and contents insurance is recommended. The combination of these coverages will ensure you have maximum protection against a variety of threats.
What Does Home Insurance Cover In Alberta?
Your home insurance provides you with protection for :
- Damage to your home : It will cover your home structure and detached structures on your property (garages, shed, deck).
- Loss or damage of personal items : Coverage for all personal belongings within your home and on your property.
- Legal liability : Get protection against lawsuits from personal actions and injury on your land.
- Additional living expenses : Your policy covers you for living expenses if your home is severely damaged and unfit to live in.
What Is Not Covered By Alberta Home Insurers?
There are exclusions in your home insurance. It doesn’t cover everything. Some items are excluded because of your policy type. In general, the following is not included in most policies :
- Damage due to wear and tear or neglect
- Deliberate damage
- Pest damage and infestations
- Injuries caused by dangerous dog breeds, exotic pets.
- Frozen pipes
- Business activity
- Some types of water damage
Review your policy to be clear what is and is not included. If you are unclear, speak with your advisor.