Not all home insurance policies are equal, or equally priced. Since there is no such thing as a one-size-fits-all home insurance policy, it is a good idea to obtain quotes from a variety of Calgary home insurance companies in order to compare coverage and determine which policy options are best for you. You will usually hear about three different varieties of insurance policies: Standard (sometimes called Basic), Comprehensive, and Broad.
Standard:
Standard home insurance protects against a specific list of “named perils” that could damage your home and belongings. The list of “named perils” often includes theft, fire, windstorms, lightning strikes, hail, and specific kinds of water damage. If you are looking to save money on the price of your insurance premium, you may want to consider only covering certain perils, and carrying the financial risk of other losses yourself.
Broad:
Broad policies move beyond the “named perils” to protect the structure of your home from “all risks”. This coverage typically protects your home from any peril unless the policy specifically excludes it. One common exclusion is poor workmanship or improper installation. Under Broad insurance, your personal belongings remain insured on a “named perils” basis. This is a mid-priced compromise between the standard insurance, which may seem too risky, and the comprehensive coverage, which comes at a higher premium.
Comprehensive: Comprehensive home insurance covers “all risks” on your home and your belongings, except for those that are specifically excluded. This policy is the most inclusive of the three options, but also the most expensive.
“Since there is no such thing as a one-size-fits-all home insurance policy, it is a good idea to obtain quotes from a variety of Calgary home insurance companies …”~Chad Mullen, Lane’s Insurance
Your home is likely the largest purchase that you will make, so while home insurance is not mandatory, purchasing the appropriate policy will ensure your investment is protected in the event of a disaster.
