Property

What is home owner's insurance?

A lot of people buy home insurance because their lender requires it as a condition of the mortgage. But what is it that you're actually buying? Not all insurance programs are created equal.

Purchasing amounts of insurance that reflect the full replacement value of everything you own is without a doubt the single most important thing you can do to protect yourself. Remember, the amount of insurance on your home itself will be different from the sales price, which included the price of the land on which your house is built. Guaranteed Replacement Cost for your building is one of the most important coverages available to a homeowner. You can qualify for this coverage by insuring your home to 100% of its full replacement value. If you do, then we will pay the full claim, even if it is more than the the amount of insurance on the building! Make sure this is shown on your policy. The Guaranteed Replacement Cost coverage applies only to your building - not to your personal property.

Another thing to be aware of ­ not all insurance policies cover theft. As our population in Canada grows, especially around southern and central Ontario, we are seeing more break and enter claims every year. It's a sad fact of life, but it is a very good idea to make sure you include theft coverage in your insurance program. While some policies may cover theft, it is almost impossible in Ontario to get home insurance coverage for some important but common occurrences, things like flooding or water damage from a leak in the roof or a burst water pipe under the sink.

We urge you to purchase replacement cost coverage for your personal property (i.e. the contents of your dwelling and personal effects). Otherwise, the basis of settlement will be "actual cash value" which means that we will apply depreciation to the damaged property when establishing values.

Remember, if you have a woodstove, your must disclose it to your broker. It must be ULC approved, and professionally installed and inspected. Some municipalities have laws that govern how high you can build a house, what materials you have to use, or even where you can build it. Check this out with the municipality before you build and have your home properly inspected by the municipal building inspector. If we have to rebuild your house to different standards, this can increase the amount of your claim significantly.

The Algoma Advantage

Whenever you insure your house with Algoma, we perform an industry standard evaluation of what it would cost to rebuild your house, adjusted for your local market. This prevents surprises if you ever have to rebuild your house.