There are many elements involved in purchasing a house for the first time. If you are knowledgeable about those elements, then you will easily sail through the process like a pro. However, in case you are lacking information and require guidance, say for example home insurance Calgary; then it is best to consult an insurance broker who will professionally guide you end-to-end through the process.
The insurance broker will understand your needs and based on your situation will recommend you the most suitable home insurance Calgary. This is important because when the unexpected events occur such as a flood, the results can be very expensive.
Information needed for a home insurance quote:
Insurance brokers typically require the following details in order to provide first time home buyers a home insurance quote that includes the different types of home insurance coverages.
1. The possession date
This is the date when a home buyer obtains legal possession of their home. Brokers require this information as it impacts their insurance rates.
2. Name on property title
The name of the home buyer or the owner of the property is referred to as the “title”. The broker needs to know this because the number of people on the mortgage title affects the insurance rate.
3. Prior insurance history
A broker needs to know if the home-buyer is applying for insurance for the first time, or whether they’ve had insurance in the past at all. If yes, then the broker requests them to furnish details of claims that they have submitted in the last 10 years along with reasons for the same.
4. Information to determine cost to rebuild
In case an event occurs where a home needs to be rebuilt, for example a fire, it is essential that the home buyer has the right amount of insurance coverage, so that when a claim is made, they have enough funds to help with the rebuild cost. In order to determine this cost, the broker usually requires details about the year the home was built, raw material used in the siding, in the roof, quality of plumbing and electrical, square footage and renovations done in the home.
Common home insurance coverages:
Below are some of the “must-have” coverages when it comes to home insurance.
1. Sewer back-up and overland water coverage
The place where a home owner lives will determine whether they are eligible for overland water coverage or sewer backup coverage. Sewer backup occurs when a large volume of water overloads a home’s drainage system and sewage enters the home. Sewer backup insurance helps with handling damages associated to your home.
In cases where flooding occurs in homes as a result of overflowing lakes or rivers, or severe weather causing heavy rain, overland water coverage helps homeowners bear repair costs.
2. Personal liability coverage
This coverage protects the homeowner against bodily injury or property damages caused to a third party. For example, if a visitor to your home falls on your walkway and files a lawsuit against you, then this insurance will cover the costs of legal fees.
3. Guaranteed building replacement cost coverage
This coverage helps pay for the replacement of a home since any reductions in the home’s value over time are not taken into account. There are two conditions of eligibility however – the home must be insured for no less than 100% of its value. Secondly, for any planned improvements, the homeowner must inform their broker or insurance company within 90 days of the start date.
4. Single Limit coverage
This coverage is determined on the total value of your home, by detaching the structures (i.e. a garage) and personal property. The rule is that in the event of a loss occurring suddenly, single limit is the maximum amount an insurance company would pay out for a one time insured loss.
Some optional insurance coverages:
Below are some of the optional insurance coverages:
1. Identity theft coverage
In case a credit card fraud occurs and a homeowner’s identity is stolen, then this coverage covers the legal expenses that would be involved to reclaim the identity.
2. Home equipment breakdown coverage
This coverage protects the mechanical equipment such as a furnace fan in the event of a breakdown. The amount of coverage and the types of scenarios are dependent on the policy type and subject to limitations.
3. Service line coverage
This coverage helps homeowners with costs and expenses in case there is damage to the exterior water or sewer lines.
If you are a first time home buyer, then patience is a virtue, since finding the right home will require your time and resources. You can optimize your search by contacting Beneficial Insurance Solutions to get at least the insurance quote started and to learn more about home insurance Calgary options.