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Property Insurance 101

Congratulations! You’ve bought a house. Whether you’re a first-time buyer, or moving into a new home, purchasing a house can be a very exciting – and sometimes daunting – accomplishment in life.

For many people, one of the first things that comes to mind when buying a new home is to ensure that your house, as well as those that live within it, are properly protected. However, if you’re not familiar with home insurance, it can seem complicated. This article will help you to understand some of the basic elements and types of property insurance.

What is Property Insurance?

Property insurance helps to protect the investment you’ve made in your home and its contents in case of theft, loss, or damage to the inside and outside of your property. Home insurance may cover:

It may also help cover additional living expenses if you’re temporarily unable to live in your home. These additional living expenses may include living in a hotel or renting another home.

Unlike auto insurance, which is required and regulated provincially, home insurance is optional. However, if you are purchasing a condominium or renting an apartment, condominium or tenant insurance may be a requirement set by the landlord or building management.

Understanding Tenant, Condominium, and Home Insurance

Tenant, condominium, and home insurance are three types of property insurance that have the same basic elements: namely, protecting your investment. However, there are some important differences.

Tenant Insurance

Most landlords’ insurance policies don’t cover personal items owned by tenants if the property is destroyed or unintentionally damaged. So, it’s important to have peace of mind with your own rental insurance policy to cover your treasured items.

 

Common Coverage Options

Condominium Insurance

Condominium insurance is a home insurance product, which provides coverage for the inside of your condominium. It may protects against liability claims and property damage, as well as provides coverage for personal belongings and any improvements you make to the unit you own.

Condominium insurance may not be mandatory by law however; most banks and mortgage lenders require homebuyers to show proof of home insurance before advancing the mortgage. In addition, condominium associations may require you to have proof of coverage before moving in.

 

Common Coverage Options

Home Insurance

Home insurance helps protect your investment in your home and its contents in case of theft, loss or damage to the inside and outside of your home or property.

 

Common Coverage Options

To learn more about tenant insurance, condominium insurance, and home insurance (as well as the optional additional coverage to add to an existing policy), be sure to visit www.allstate.ca

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