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Home Insurance 101: Discover How Home Insurance Works

how home insurance works

Are you new to insurance? Or do you just want to know a little more about it? We’re here to help.

Insurance may seem a bit complicated, but once you’ve got a handle on the basics, it gets easier and you can start making confident, informed choices for yourself. After all, knowledge is power.

What is home insurance?

Home insurance is your way of being able to cover the expenses that come up if something unexpected happens to your home and your belongings, like a fire or a break-in. It’s also there to protect you if you accidentally hurt someone or damage someone else’s property anywhere in the world. At belairdirect. we offer three types of insurance: homeowners, condo owners, and tenants. Although home insurance isn’t required by law, it’s a good idea to have it. A little protection for the things you cherish can go a long way towards peace of mind.

Why do I need it?

We strongly recommend that you have home insurance because it can help with potentially huge expenses that come out of an unexpected event that involves your home or yourself. Let’s say there’s a fire in your kitchen. The fire’s damage spreads from the kitchen to the living room, your bedroom and to your neighbour’s property. Your expenses can really add up as you need to replace furniture, clothing and housewares, and arrange for repairs to your walls and floors,

and ceilings. You’ll also need to arrange for repairs to your neighbour’s property. These expenses need to be covered. The insurance you pay into helps cover these expenses.

Who has to get it?

No one is required to have home insurance, unless specifically required by your hypothecary creditor/mortgagee, but it's certainly recommended.

How do I get it?

There are a few ways to get insurance. You can go through an insurance broker, who offers insurance products for various insurance companies. Or, you can go through a insurance agent, who works for a single insurance company and only sells that company’s insurance products. Or, you can buy coverage directly from an insurance company through their website or call centre, with the help of an insurance agent. When you get home insurance through belairdirect, we’ll ask for some information about you, your home, the things you own and the area you live in.

How do you calculate my premium?

Everyone’s insurance premium reflects their unique situation. When we calculate your premium, we look at a lot of factors, like the type of dwelling you live in, the value of the things you own, the area you’re living in, and how long you’ve been living there. If you have special collections, expensive pieces of art or jewellery, or other special things you need coverage for, your rates will likely be different than someone who doesn’t need any special coverage.

Category: Insurance

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