Page 6 - REN July-Aug 2021

Basic policies will cover only the perils explicitly named in the policy. For that reason, these are generally among the
cheapest insurance options.

If you’re looking for a middle-of-the-road insurance package, a broad policy will apply comprehensive coverage on
big-ticket items like the building, but also named perils for the home’s contents. Finally, if your home doesn’t meet
typical insurance requirements, like if it has extensive physical problems, a no-frills policy for these specific cases
could be available from your provider.
Hands points out determining what kind of coverage you need will largely depend on your property’s location.
Environmental factors such as floodplains and earthquake-prone areas could cause damage to your property, but
not all insurance policies will protect you against these elements. Hands says you may be required to include a form
of optional coverage known as an endorsement in your policy.
“Basic coverage doesn’t include sewer backup or overland water, which is considered flooding endorsements,” says
Hands. “Those are the things you probably want to add if you’re in an area that is prone to flooding.”
In addition to the physical building, insurance endorsements can also protect specific contents on the property.
For instance, if you own high-value items like jewelry or art, a provider may only allow you to claim up to $6,000 in
coverage for such items, Hands explains. However, an endorsement for high-priced items in your insurance policy
would provide you with full coverage in the event of theft or damage.
“A lot of people assume that because they have contents coverage that everything inside their house is going to be
covered, which isn’t true,” says Hands. “There are limits to the amount they’ll cover on certain items.”

What do I need to do to make a claim?
If an incident occurs on your property, Hands says to report the
event to your insurance provider as soon as possible to start the
claims process. Documenting all aspects of the incident with photos,
receipts and notes, and keeping a log of lost items will help greatly
with processing your claim and getting reimbursed.
“You can never over-document a scenario,” says Hands. “Take
pictures, jot down notes. Just like if you were ever in an accident, you
want to document everything right away so it’s fresh in your mind.”

You’ll be required to pay a deductible, which is the cost you’ll use
to cover damages before your provider pays out. Hands explains
your provider will also be able to give guidance on what to do and
what not to do when accidents happen on your property, especially
in cases where repairs are required. For example, your provider may
only work with approved contractors to ensure the quality of the
repair.

It’s always good to keep your insurance provider in the loop when big upgrades or changes happen on your property,
not only to ensure you’re fully protected, but also to prevent a scenario where you’re violating your contract and
therefore jeopardizing your claim. For example, many homeowners have been undertaking renovations or setting up
a home business during the COVID-19 pandemic. These cases require updating your provider since you’re potentially
adjusting the replacement costs of materials and adding greater liability or risk to the property that would require
coverage.
“It’s always important to update your insurer, to keep them in the loop of what’s going on with your property,” says
Hands. “They often refer to that in the industry as ‘material misrepresentation of facts’ or ‘negligence’ or outright lying
if they think that you’re purposely hiding facts from them just so you can get a cheaper rate.”
If you’re a new or renewing home insurance owner, an experienced REALTOR® can connect you to local insurance
experts for the best coverage for your property. g

6 | REAL ESTATE NOW | denise@BCislandhomes.ca