Home insurance primarily covers your dwelling, its contents, and your personal liability. The vast majority of Canadian homeowners opt for a comprehensive insurance policy—which offers all risk protection on your home and personal property.

• Your Home:

  Coverage for your home and the detached structures on your property such as your garage, storage shed, and pool house.

• Your Belongings:

  Coverage for the contents inside your home, such as furniture, electronics, clothing and other personal property.

• Living Expenses:

  Helps cover costs such as hotel rooms, restaurant meals, storage costs, and other living expenses for time away from your home due to an insured loss.

• Liability Claims:

  Helps to protect you financially from bodily injuries or property damage to others while they’re on your property.

Your deductible is the maximum amount you'd pay for repairs in case you claim an accident at-fault. Your insurance would cover the costs that exceed your deductible up to your policy limit.

Online quoters usually fix and hide these amounts, presuming you wouldn't change it. However, considering different levels of deductibles and coverage limits could reduce your premium now and in the long-run.

This is where your insurance advisor, depending on your car and other risk factors you face, could provide you with important insider's tips.

Lenders, to protect their investment, often mandate that new homebuyers maintain basic homeowners insurance coverage as a minimal protection against damage posed by fire, lightning, hail, explosions, and an assortment of other disasters as part of their financing package. Like the limited liability coverage on your vehicle, however, these basic policies typically have a longer list of items not covered under the contract than those issues that are protected under its covenants.

For instance, rotting floors, sparking light fixtures, failing roofing systems, and malfunctioning appliances are just a few of the problems that only a comprehensive policy covers, so homeowners who believe their basic home insurance has them protected will be very disappointed.

Although comprehensive homeowners insurance carries a higher price tag, it also provides the highest level of protection against an array of disasters in addition to those listed above. From protection against liability claims in the event of a slip and fall accident to guarding against damage to freestanding structures like garages and sheds, comprehensive policies also cover:

• Loss and destruction to personal possessions
• Vandalism
• Water damage not caused by natural floods

As mentioned, this level of coverage does carry a higher price tag, so homeowners looking for peace of mind while managing their budget can choose a higher deductible to lower monthly premiums.

An affordable alternative to the comprehensive policy is the Named Perils home insurance policy. It specifically targets areas of concern that you, after assessing your property’s risk factors, are most worried about. For instance, is your home located in an area prone to severe weather events, or does the threat of a flooded basement weigh heavier on your mind? A Named Perils policy allows you to target concerns with coverage that only protects those items you specifically list or name in your policy.

Need more than comprehensive coverage? Numerous options or endorsements are available. These allow you to extend your home insurance coverage to include situations or property not covered by a standard policy. The following are examples of popular endorsements that can allow you to raise specific coverage limits for certain categories of items, as well as address some of the exclusions in your policy:

• Guaranteed Replacement Cost:

  Guaranteed Replacement Cost Coverage pays for replacement, without depreciation, of your personal property after covered damage or loss.

• Sewer Backup:

  Protection from overflow of the public sewage system, causing water to be pushed back into your home by such things as heavy rain or melting snow.

• Overland Water Protection:

  Coverage for damage caused by overflow of water from a lake, river, heavy rain, or rapid snowmelt.

• Jewelry & Valuables:

  Higher coverage limits for your valuables such as jewellery, furs, collections, and fine art.

Unlike auto insurance, home insurance is not required by law in Ontario. However, in order to finance your home, most banks and mortgage brokers do require that you have home insurance in order to qualify for a loan. Ask your loan provider what are the minimum requirements to qualify and how additional coverage options could impact your loan.

Beyond these considerations, getting the right home insurance coverage is a unique and even personal decision. No generic formula suits everyone and not all insurance companies offer the coverage you might need. A good place to start is getting free advice from an experienced home insurance consultant, such as an independent broker. As certified experts, they can understand your particular needs and help you personalize the coverage that really fits you at the right budget.

We hope you chose M&W as your home insurance broker. We'll work for you, not for the insurance companies.