Frequently Asked Home Insurance Questions

Homeowners insurance is a form of property and casualty insurance. It primarily covers your home and the stuff inside of it in the event of theft or some disasters.

Home insurers won’t cover mold or mildew damage or removal, unless it was caused by a sudden or accidental incident covered on your policy (like a bursting pipe).

A home inventory is simply a list of your personal possessions along with their estimated financial value. A home inventory will help you provide a detailed list to your insurance agent of anything you may have lost if your home is damaged or destroyed in a covered claim.

Most items are covered for loss or damage as a result of specified perils or subject to stated limits. Take jewellery, for example. In the case of a jewellery theft, in most instances, the company will reimburse you up to $1,500. However, loss or damage resulting from losing a bracelet or dropping a vase, for example, would not be covered unless that item was specifically insured, also known as scheduled. There are also limits on such things as money, securities, watercraft, trailers, furs and guns. Please check your policy for the specific coverage limits.

Each fire protection agency (including your local fire department) is reviewed by the Insurance Services Office (ISO) and ranked based on their fire protection services, such as fire equipment, staffing and available water supply. The ranking is called the Public Protection Class (PPCTM) with 1 being the best score and 10 being the worst score. Many insurance companies use the P P C rating and the distance your home is from the nearest legally responding fire department to determine whether they will insure your home and how much to charge.

If you select a higher deductible, you will be responsible for paying more out of pocket. However, you’ll typically pay a lower policy premium. The opposite is true if you select a lower deductible option: because the insurer will pay a larger portion of any loss, you’ll typically pay a higher policy premium.

Because there are so many factors that affect the cost of homeowners insurance, a typical annual premium can range anywhere from $400 to $1500, or more for a high value home. If you choose additional coverage, you may pay a higher premium, but you will also have better protection.