5 Questions to Ask Before Purchasing a Home Insurance Policy

5 Questions to Ask Before Purchasing a Home Insurance Policy

Your insurance broker will recommend the best options for your needs, but that doesn’t mean you shouldn’t do your own due diligence too. Asking the right questions and getting the right information can help you fully understand your options and ensure you’re making a well-informed decision. Come prepared with these five questions to ask before purchasing your home insurance policy.

What’s the Replacement Cost?

One of the most important questions to ask before purchasing your Ottawa home insurance is the replacement cost. This is how much it would cost to rebuild your home with similar materials if it was damaged in a fire or other scenario. Some policies have a ceiling that may not cover all the costs to rebuild your home. A guaranteed replacement clause, on the other hand, would rebuild your property even if the damage exceeds the policy’s limit. 

Does My Policy Cover Water Damage?

You’ll also want to make sure you’re well protected against water damage. To ensure you have enough protection, ask if your policy has coverage options for water that damages your property either by burst mains, snowmelt, spring thaw, heavy rains, or overflowing rivers or lake water. If certain options are not included, ask which insurers will offer water damage coverage options as an add on.

Can I Get Coverage for Working from Home?

Many Canadians have been working from home since the pandemic began. If you run a business out of your home, you’ll want to find out what you are covered for. This is an important question that you don’t want to skip, especially if you have clients who visit your home. Having liability coverage would be essential to have to protect you and your property.

Are There Any Coverage Limitations?

It’s also important to understand the limits of your coverage, especially when it comes to liability insurance. Increased limits may be available if you need a higher amount of coverage. Another feature to ask about is the additional living expenses if you can’t live in your home because of a fire or other peril and must temporarily live somewhere else. ALE coverage limits vary from insurer to insurer, so it’s wise to ask about the limits to understand if it’s enough to cover your family’s needs.

Are Discounts Available?

There might be discounts available to you, especially if you bundle multiple insurance products together or add family members to your current policies. So don’t forget to ask about all the discounts that you may be able to take advantage of to save a little more money each month.

At MLS Insurance, our team always takes the time to explain everything to you in detail and answer any of your questions in terminology that you will understand. We want you to be fully armed with the information you need to make the best decision for you. Contact us today.

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MLS is an independent Insurance brokerage that works for you – finding the best products for your needs. Our compensation is part of the insurance premium.

MLS is an independent Insurance brokerage that works for you – finding the best products for your needs. Our compensation is part of the insurance premium.