Everyone needs insurance to protect their home and belongings to some degree, whether you’re a homeowner or a tenant. But it’s important to understand some of the technicalities behind what is being covered by your home or personal property insurance policy.
Case in point, there was a recent report from Mississauga where a vehicle crashed into a private residence. In situations such as this, it’s important to review insurance coverage under your home / property insurance to see which area would respond in this situation.
Another area to consult is the guidelines provided by the Financial Services Commission of Ontario (FSCO) on the basics of coverage for homeowners insurance, which covers damage or loss to the dwelling (actual building) you live in: whether that is a house, apartment or condominium.
Some of the most common insured perils that apply to the dwelling and contents in your home include:
- Fire / Smoke
- Water damage (check your policy to see which type of water damage is covered)
- Falling objects (except those caused by earthquake or snow slide)
- Impact by aircraft or land vehicle
That last insured peril can be applied to the example provided earlier.
As for the other insured perils under your personal property and home policy, you should carefully check to see if any conditions are attached for covering those losses. For example, smoke is only covered if it comes from a malfunctioning cooking device or heaters; smoke emanating from a fireplace is not covered.
Likewise, water damage is covered but there are specific types of water damage that may require an endorsement (additional coverage) on your insurance policy, such as flood and sewer backup. Sewer backup is damage caused by backed up sewers, drains, toilets, showers and not typically covered under standard policies.
If you have any questions regarding your home insurance and what it covers, please contact Pacific Insurance Brokers Inc. at 416-494-1268 to speak to one of our seasoned professional advisors.