Property Insurance

Property insurance provides coverage in the event of your property being destroyed by flooding, earthquake, vandalism or fire. Coverage may be for- – market value - the amount your property is worth now – replacement value the amount it costs to replace your property

Tenant’s insurance Purchased by anyone who rents property. Insures the contents of your home, but not the home itself.

Homeowner’s Insurance purchased when you own a house or condo covers the contents, the building and liability related to your property banks require homeowners insurance before you get a mortgage Standard/Broad Insurance covers only specific perils Comprehensive Insurance covers more (i.e. sewer back up)

Cost of Property Insurance Depends on five main factors: Replacement Cost – building, contents, outbuildings, additional living expenses, third party liability. Location – Metro- within city limits – Protected - outside the city, but within 300m of a fire hydrant – Semi-Protected- outside the city, but within 8km of a fire hall – Unprotected- homes located over 8km away from a fire hall

Cost of Property Insurance Types of Coverage (Broad or Comprehensive) Amount of Deductible – You pay more to have a lower deductible Available Discounts – Burglar alarm – Claim free for over 3 or 5 years – New home – Purchaser is over 50 or 60

Buyer Beware! When you buy insurance you must be very careful to understand what you have purchased: Coverage varies between plans – If you own expensive items they may not be sufficiently covered – Jewellery is usually only covered up to $500 on basic insurance, you need to buy a rider, or additional coverage for specific items. Don’t over-insure. You will only ever receive the replacement value of what you have. Replacement value and market value are very different, know which you have!

Assignment p.59 #1-6