Home insurance is a complicated topic. Everyone benefits from it, but how much coverage do you need? According to our real estate agents, it depends on your needs and budget. Let's look at what home insurance offers, how policies are grouped into levels, and how to decide which level is your best bet. 

Understanding Home Insurance Coverage

There are many different types of home insurance coverage available in B.C. Some of the most common include:

• Dwelling, which covers damage to your home's structure and any attached structures (such as add-on units) due to break-ins, fire, and other unforeseeable events
• Other structure, which covers unattached parts of your home, such as your fence or mailbox
• Personal property, which covers items in your home that are stolen or damaged in a covered event
• Personal liability, which covers legal, medical, and repair or replacement costs for major injuries or property damage caused by members of your household
• Medical payments, which cover the medical bills of non-residents who sustain minor injuries on your property
• Additional living expenses, which cover the cost of meals and accommodations if your home is damaged or destroyed

Every home insurance policy includes at least one of these. Most include several. 

Most home insurance policies also don't cover damage incurred due to certain events. You can purchase additional coverage to protect your home from things like earthquakes, floods, and sewer back-ups. 

The Four Levels of Home Insurance

To simplify things for buyers, B.C. insurers group all of the types of coverage listed above into four distinct levels of home insurance:

1. Comprehensive, which covers your home and its contents for all events except those that are specifically excluded
2. Broad, which provides comprehensive coverage for your home and limited coverage of its contents
3. Basic or Named Perils, which cover your home and its contents in the specific scenarios listed by the policy
4. No Frills, which offers bare-minimum coverage for properties that don't meet typical insurable standards

Which Level is Best for You?

While comprehensive home insurance offers the best coverage, it also comes with a higher price tag. This means that it may not be the best choice for all B.C. homeowners. 

Consider your needs before shopping for a home insurance plan. For example, a homeowner with a pool or a trampoline on their property is more likely to need medical expenses coverage than a homeowner who doesn't have these items. On the other hand, someone with an older home may not feel that fully insuring it is worth the cost. 

You may need to purchase additional coverage to fully protect your home from disasters. For instance, there are consistently high levels of earthquake activity near our Victoria homes for sale, making add-on earthquake insurance a particularly good idea for homeowners in this area. 

Lastly, don't forget to factor your home's contents into your calculations. If you have lots of expensive electronics, jewelry, antique furniture, or other valuables on the premises, you'll want coverage that includes those items. 

Peace of Mind Starts with the Perfect Home 

Home insurance helps you protect your property and ensure your family can continue to thrive. Make sure the home you're insuring is right for you. Contact us today to browse our available properties and find one you'll be happy to live in for years to come.