Home Insurance

Homeowners, condominium and tenant coverage

Homeowners' policies may combine coverage for the dwelling, personal belongings, personal liability and additional living expenses after an insured loss. A condo corporation's policy generally protects the building and common property under its terms; a unit owner's policy addresses different interests such as belongings, improvements and liability. Tenants do not insure the building they rent, but may choose coverage for their belongings, liability and temporary living costs.

Do not assume the property type or who lives there is already described accurately. Tell the insurer if the home is rented, shared, used seasonally or includes a home-based business. A renovation, new outbuilding or major purchase may also affect the information the insurer needs. The declarations page, policy wording and endorsements determine the actual protection.

Limits, deductibles, replacement cost and water

A coverage limit is the maximum payable under the policy for a covered loss, subject to its conditions. A deductible is the amount the policyholder pays toward a claim. Different coverages may have separate limits or deductibles. Rebuilding cost is not the same as market value: land, location and buyer demand affect market value, while construction materials, labour and property features affect the cost to rebuild. Ask how the dwelling limit was estimated and what assumptions it uses.

Water-related losses need careful questions. Sudden plumbing leaks, sewer backup, surface water or overland flooding may be treated differently, and some protections may require optional endorsements or have special limits. Wear, gradual damage and maintenance conditions can also matter. Do not infer coverage from a general summary or another homeowner's experience; ask the insurer to explain the exact wording for the risks at your address.

Compare policy terms and prepare for a claim

Compare policies using the same property, occupancy and coverage details. Record limits, deductibles, settlement basis, exclusions, special item limits, water endorsements, additional living expense limits and how claims are reported. A lower premium can reflect a higher deductible, narrower coverage or different assumptions. Ask about discounts only after confirming the coverage comparison is like for like.

Keep an up-to-date home inventory with descriptions, photographs and receipts for valuable items where possible. Store the policy and insurer's claim contact somewhere accessible outside the home. After damage, prioritize safety, prevent further damage when it is safe to do so, document what happened and contact the insurer for instructions. Do not discard damaged property before asking about the insurer's documentation requirements, unless immediate safety requires it.

A practical checklist

Use these points to prepare your next conversation or comparison. Which ones apply will depend on the product, property and jurisdiction.

• Confirm the policy accurately describes the home, occupancy, residents and rental or business use.
• Review dwelling, contents, liability and additional living expense limits.
• Ask how rebuilding cost is estimated and whether renovations or special features are included.
• Compare deductibles, exclusions, settlement terms, water coverage and special limits.
• Update the insurer after major changes and keep written confirmation.
• Maintain an inventory and know how to report a claim.

Questions to ask a provider or professional

• Which water events are covered, excluded or available by endorsement?
• How are rebuilding limits and claim settlements determined?
• What deductible or sub-limit applies to each coverage?
• Does the policy reflect tenants, roommates, rental use, renovations and major belongings?
• What should I document and who should I contact after a loss?

Frequently asked questions