3 Questions to Ask Before Buying Insurance

You work hard to buy and maintain a home, doesn’t it deserve the best protection possible? When it comes to getting home insurance, auto insurance and the like, many people may not know where to start. Are you aware of the necessary home insurance coverage to keep you and your family effectively protected? Knowing the ins and outs of buying insurance is important, and we want to help enlighten you!

Important Questions to Ask Before Buying Insurance¶

Home insurance coverage and premiums vary from one company to another and from one policy to another, so it pays to ask questions before you buy or renew. The following are three important questions that you should ask.

1. What does my home insurance policy cover?¶

This all depends on the type of coverage you're seeking. Some policies cover against named perils (generally referred to as a standard/basic policy), while others may not.  Other policies cover you against all risks on the building and named perils on the contents of your home.  Still, other policies cover all risks on both the building and its contents, but are subject to some exclusions, generally referred to as comprehensive policies.

2. Are there certain risks insurance doesn't cover?¶

No insurance policy covers everything that can go wrong. Insurance is intended to cover losses caused by unforeseeable events. Losses that are predictable and/or inevitable are typically not covered by insurance. However, there is optional coverage you may want to consider: sewer back up, earthquake, flood, overland water, roof collapse, ice damming…

3. What are some items that might require additional insurance?¶

The standard dollar limits to replace stolen cash, garden tractors, watercraft and computer software are relatively small, so you may want to buy additional coverage for these items. Coverage limits apply to bicycles, jewellery, watches, furs and coin, stamp and card collections.  Reasonably priced supplementary insurance for these types of specific items, often called scheduled articles or floater coverage, is usually available. Coverage can be worldwide and there’s usually no deductible.

Here at Palladium Insurance we aim to educate and equip our clients with the right coverage to effectively meet their needs. Click to learn more about our home insurance coverage, and let us earn your trust.