Home Insurance...Know Your Coverage

This summers unexpected down pours caused many home owners financial grief due to the flooding.  The City of Toronto alone is estimating a cost of $60 million which only $5 million will be recovered by insurance.

Unfortunately not every home was aware or prepared for such coverage for their homes as it was an additional premium in order to be covered for such a disaster.  According to The Toronto Star, $850 million in claims have been submitted so far from GTA home owners which was reported in August by The Insurance Bureau of Canada.

When considering purchasing a home, it would be a good idea to check with the Municipality if there are any deficiencies or cause of concerns with their infrastructures, waste systems and especially homes that are built near water, ask if there are areas of flood plain zones.  Conditions can be put in an offer to allow you ample time to do so if you or your real estate sales person did not have a chance to check.  Also, you may want to start early and call insurance companies as they may be aware of issues that have already occurred in the neighborhood and will give suggestions so pay attention and don't just assume they are trying to "sell" you more to pay more. 

Some condo home owners might not be aware that there are also premiums for flooding protection for them as well. What flooding you say, it's a building?  What if your pipes burst and cause damage to your unit and water seeps to the unit below?  The condo corporation most certainly has building insurance but only covers damages that are deemed to be their fault. There is a demarcation point in the walls and if the root cause is from that point onwards toward the interior of your walls or fixtures that you installed, you most likely will be responsible for damages.

Whether it be home, car, life or mortgage insurance, fully understand your risks and what options are available so ask lots of questions and take your time.





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