This week in our Insurance Primer Series, we’re looking at property insurance.  

Home (Property & Fire) Insurance: Home insurance, as most people know it, must be in place before you complete your mortgage transaction whether you’re buying a property or refinancing it.  Not all homes or properties are insurable, so if you don’t already own the property, you will need to review this before committing to your purchase.  

In addition to protecting against fire damage, home insurance can of course also cover the contents of your home (depending on your policy) and a myriad of expenses should you have to find somewhere else to live while repairs take place after any kind of damage.  Anyone purchasing a condo, townhouse, or any kind of strata property must also consider strata deductible insurance.  If the strata is at fault for damage to an owner’s unit due to shared plumbing for instance, the owner may face a large expense in having to cover the strata’s deductible which can be very high as of late.  Buyers will also want to cover personal belongings or any upgrades. Be sure to check the strata’s insurance policy and take out an individual one on your own unit to cover any gaps.

Additional coverage for natural disasters may also have to be purchased separately.   My insurance contacts have helped many of my clients get the coverage they need in time for their purchase and have provided significant savings in the process.  For any information on mortgages or insurance, please don’t hesitate to call.