Frequently Asked Questions.

Why buy house insurance?
How does it work?
What is a comprehensive policy?
What is a broad form policy?
 

Why buy house insurance?

Buying your home is one of the biggest financial investments you’ll ever make. You have likely invested a lot of time, money and energy into making it your own The last thing we want to think about is theft or fire, but if something happened, what would you do?If someone were to slip and fall on your walkway, you could be responsible for that person’s injury. Home insurance protects your property, your belongings and your lifestyle. It can also provide liability coverage in case someone is accidentally injured while visiting your home. If you have insurance, and depending upon the terms of coverage, your insurance company would pay for these expenses – not you.

How does it work?

House insurance is usually sold as a “package” policy. You are the “Insured” and you pay a monthly or annual premium to the “Insurer” for taking the responsibility of paying for the cost of repair to or replacement of the asset that you have insured, should something happen that is covered by your policy.

There are several types of insurance polices you can purchase. Please remember that the wording and what is covered may vary within these general categories from one insurance company to another. The two most common policies are comprehensive and broad form policies.

What is a comprehensive policy?

This is the most inclusive home insurance policy; it covers both the building and its contents for all risks, except for those specifically excluded. There are two types of insurance risks that are not normally included in any home insurance policy – those for which you can buy optional insurance (“optional coverage”) and those for which insurance is not available (“uninsurable peril").

What is a broad form policy?

If the comprehensive policy costs more than you want to pay, a mid-priced compromise is the broad insurance policy. This policy provides comprehensive coverage on the building and named perilscoverage on the contents.