Insurance can be hard to make sense of, especially if you're a glass half full type of person. You’re spending money on something you don’t see the benefit of until disaster hits.
Yet, as our CEO Daniel explains in this interview with our pals at Sonnet Insurance, it's smart to control your risk when it comes to things like buying a home, travelling, and protecting your fam.
Insurance 101 - Home, Condo and Renter’s Insurance
What is it?
Similar to car insurance, home or renter's insurance protects you against damage that can cost a lot of money to repair. Breathe a little easier knowing you're covered should fire damage, water damage or wind damage hit your humble abode. It also protects against a break-in. Home insurance covers your home as well as your belongings (up to a certain limit), while renter’s insurance just covers your belongings.
How does it work?
You pay a monthly premium (based on your home's estimated “risk”) and if you need to make a claim, most of the repairs are covered by your insurance company. How much depends on your coverage and the deductible you choose, but you'll definitely pay less out of pocket.
Who needs it?
Home insurance is not technically required by law – but banks often need proof of insurance before approving a mortgage. Similarly for renters, some landlords require tenant insurance before approving your application.
Do I need it?
Yes. There's no need to take a chance. If we can't convince you, maybe these home owner stats will do the trick (they're all Toronto-based):
The average sewage backup claim for a GTA homeowner costs $35,000*
The average sewage backup claim for a tenant costs $13,000*
The average fire claim for an Ontario homeowner costs $101,000*
*Based on 2010-2017 claims data from Sonnet Insurance's affiliated insurance companies.
How do you make sure you’re getting good value?
An easy and affordable way to get insurance is through an online company such as Sonnet. You can get a quote and buy home (or auto) insurance within 5 minutes – without hearing a sales pitch.
Companies like Sonnet tend to offer competitively priced insurance because they eliminate the middle man and pass these savings onto their customers💰
When can you change your policy?
Home insurance policies usually last one year but there's an “auto-renew” on all policies, so many people don’t realize they can change their policy every year.
You can cancel your policy mid-cycle, but might have to pay a breakage fee. Check out Sonnet’s Cancellation Calculator to see whether you’d save more money switching your policy mid-year.
We hope you can use these tips to get yourself better insurance and pocket those savings!