Why Is It Important to Have Home Insurance?

Why Is It Important to Have Home Insurance?

Contrary to automobile insurance, home insurance is not mandatory. Which is why some people question the necessity of having any.


And yet, the advantages are not negligible! Moreover, subscribing to a good insurance policy can avoid unfortunate consequences. Here’s why. 

What Is Home Insurance?

Home insurance protects your house, as well as the value of the belongings it holds, in the event of theft, fire, injury or flooding, including liability insurance.

Liability is defined as damages caused by a person or your residence that impact other people. Consider what would happen if a fire that started in your house spread to your neighbour’s; if your dog were to destroy the electrical cables of the house across the street; or if your son’s best friend got hurt falling down your stairs!


Why Is It Useful?

Primarily, for peace of mind! You may believe that your home doesn’t contain particularly expensive items, but as a whole—consumer electronics, musical instruments, bicycles, cameras, jewelry, artwork—the value of your possessions can come to tens of thousands of dollars.

Imagine losing everything overnight in a house fire! Or worse: what if someone were accidentally injured because of an oversight on your part and you can’t afford to compensate them? It is in such cases that home insurance will come to the rescue. 

And What if I Have Tenants?

You must absolutely inform your insurance company if there are other people living with you or if you have tenants. By doing so, you won’t have to worry about your nephew’s lifestyle and risky habits while he rents the basement bedroom, for example. In the case of a tenant occupying a separate residence from your own, keep in mind that the insurance policy will not necessarily cover the building nor anything that is not directly related to the tenant.

However, if you own several units, you could take out a landlord insurance policy which can cover up to six occupied dwellings in a multi-unit property. This type of insurance has the advantage of protecting an entire building as well as offering liability protection.

And if you are the co-owner of a building, it is possible to write up a contract that considers both certain specific circumstances and each owner’s particular needs. Otherwise, it is pretty much the same as a “regular” homeowner’s insurance policy.


The Different Types of Insurance

  • “Comprehensive” Insurance: This is the insurance contract to have as it includes all categories of protection! In addition to covering your home’s walls, it likewise covers any damage to your property that you may have caused yourself, such as that tennis ball that has unfortunately shattered the living room TV’s screen.
  • “Broad” Insurance: More affordable than the preceding contract, a “broad” insurance policy nevertheless combines two separate types of protection: one for the building and another for your belongings … except with policy limits.
  • “Basic” Insurance: This insurance provides minimum coverage. You should check with your insurance company, but generally this kind of contract will only cover falls, fire, vandalism, and theft. Nonetheless, for many people, this level of protection is amply sufficient.

While having home insurance is not an obligation, it can offer you peace of mind. You will know that if a problem should arise concerning your property, you won’t be left in the lurch! Obtain several quotes from various companies to get the best coverage that corresponds to your needs.

RE/MAX Québec

By RE/MAX Québec

By RE/MAX Québec

A leader in the real estate industry since 1982, the RE/MAX network brings together the most efficient brokers.