Buying your first home is exciting and probably a dream that you’ve worked years to achieve, but it brings with it a new set of responsibilities.
Know your home
Make sure you understand your home’s plumbing, electrical and heating systems. Also, take a look at the roof. Insurers will look for features that have not been updated for 20 years and that will affect the cost of your home insurance policy.
Find out how your home is heated. Some places in Canada have homes that use oil heat. The age and type of oil tank will affect whether your home can be insured and the cost of your policy.
Be aware of potential risks
Be aware of any potential risks to your home, like sewer backup or overland water damage, and make sure you have the right coverage. Some coverage is not included with a standard house insurance policy and must be purchased as an endorsement, so make sure to read the fine print and understand what is covered. If you need additional coverage, it is usually easy to add by talking to your Wyatt Dowling insurance broker.
Be aware of lender requirements
If you are getting a mortgage, your lender will have specific requirements for the insurance you need in order to qualify.
You will not be able to get a mortgage without having home insurance.
Make sure to find out what type and limits of insurance you need to meet your lender’s requirements.
Get premium discounts
There are a few ways to save money on your home insurance policy.
Bundling your home and car insurance with the same insurer can save you money and makes it easier for you because both policies are with the same company. Some insurers will apply one deductible when a loss involves both home and car.
Upgrades like monitored security systems and fire alarms can lower your premium.
Ask your broker about any other discounts that might be available to you.
Consider how renovations will impact your home insurance needs
When purchasing a home, many first-time homebuyers choose to update it extensively. Renovating a home is exciting but many people do not think about the impact it will have on their home insurance policy. Renovations will often change your home’s value or increase exposure to certain risks with features like pools and fireplaces.
Renovating can increase your home’s value but will not always increase your premium. Renovations and upgrades can sometimes reduce the premium when you add upgrades like a new heating system or adding a security system.
It is always advisable to hire contractors that have their own insurance coverage in place. Do not forget to make sure you also have the right liability insurance in place during renovations, in case a contractor or anyone else gets hurt on your property.