Protecting Your Home With The Right Policies
Canadian homeowners purchase homeowner's insurance policies as a term of their mortgage loan program. What they may not realize is that their coverage is based on choices that they make. Since policies vary, these homeowners may not acquire enough coverage through a standard policy. For this reason, they should review their home insurance policy and identify specific terms for the fullest level of protection.
Funds to Repair Property Damage
The terms of the policy determine how much funds are available to pay for structural repairs. The existing policy could place limitations on the total value available per claim. It could also have provisions about how often a claim can be filed and a total available value for the entire year.
On average, repairs for structural damage could equate up to $7,000. If the policy allows this value for the entire year, the homeowner may have out of pocket expenses after a major disaster. It could also limit them to one claim in a given year based on these events. Property owners should review their house insurance to make these distinctions.
Temporary Living Expenses After Evacuation
Homeowners should conduct research to determine the average turnaround time for reconstruction. This could provide them with an estimated duration in which they are displaced from their property. They could use this estimate to identify the value of temporary living expenses they'll need during this time.
Under a homeowner's insurance policy, the owner receives these funds after filing a claim for repairs. The insurance company provides these funds to pay for hotel rooms, food, and necessities. The owner identifies the value for these funds when they choose their policy. With adequate research, they could avoid a shortage of funds in dire circumstances.
Reviewing Market and True Value of the Property
A standard policy may provide the market value for the property only. This value is what the owner could expect to receive if the property sold in the current market. Unfortunately, this value doesn't reflect the full value of the property. If the homeowner acquires the true value through their policy, it covers the total cost of rebuilding the property. Property owners should review their Home insurance in British Columbia for these terms.
In Canada, property owners should revi