When it comes choosing the right home insurance in Toronto, it helps to keep in mind that there are many different coverage levels. One type of policy might work well for your neighbor in Toronto but may leave you with substantial out-of-pocket costs if you need to file a claim. Though you may be more concerned about saving money on your insurance premiums, it is far more beneficial for you to consider the benefits of having a comprehensive policy that is tailored specifically to your situation.

Factors That Affect Home Insurance in Toronto

Choosing the right insurer is only half of the equation when shopping for a good Toronto home insurance policy. The other half is a mix of factors that take into account your lifestyle and budget. Here is a brief rundown of factors to consider when shopping for home insurance in Toronto.

• Know Your Property Value - One way to ensure you get a sufficient amount of home insurance in Toronto is to choose coverage based on the current value of your land. Property values fluctuate often. If you base the value of your land on what you paid when you purchased it and use that figure when purchasing your policy, you could end paying significantly more than necessary to adequately cover your home, should the need to rebuild occur.
• Know Your Risks - Getting the right amount of coverage means you’ll need to understand the potential risks that could affect your property. Fire, water damage, theft, liability issues and tree and wind harm could impact your home in one way or another and leave you scrambling to restore your property as fast, efficiently and affordably as possible. These risk factors are not common events, but they do happen and often at the most unexpected and inconvenient times.
• Know Policy Exclusions - Home insurance in Toronto offers valuable protection to homeowners, but there are exclusions that most are not aware of. To avoid unexpected surprises when it is time to file a claim, review your coverage often and double check the exclusions to ensure you understand what is expected of you in order for you to enjoy the full benefits of your policy. For example, a common caveat for some policies is insurance will pay for repairs for roof damage stemming from a covered event, only if the roof is within a certain age. In this case, failure to keep up on roof maintenance and replacement can result in the denial of a legitimate claim.
• Know the Deductible - Many Toronto homeowners choose a certain deductible when they first get their policy but forget to review and update it when their circumstances change. High deductibles can make premiums more affordable, but if you experience a decrease in finances, it’s a good time to review your policy limits and deductibles to ensure that you can afford to uphold your end of the agreement should you need to file a claim. Remember, the deductible applies before your insurer steps in to reimburse. If your deductible is too high, you could have a challenging time trying to recover after a loss.
• Know Discount Options – Most homeowners make upgrades to their homes to make them more comfortable, improve their curb appeal and increase their market value. There are many ways you can make improvements to your property that can create discount opportunities for your home insurance in Toronto. Incorporating additional safety features like fire alarms, security monitoring systems and certain types of sprinkler systems to mitigate the risk of damage, loss and improve security can result in lower premiums. Before you make any improvements, speak with one of our agents to learn recommendations and their savings potential.
• Know the Correct Replacement Value of Possessions - When insuring your property, make sure you are stating the correct value of your possessions. Overstating their value can result in complications and higher premiums. Keep in mind that most items depreciate in value and become cheaper to replace over time. Even though it can be hard to place a value on items that hold special meaning, honesty is always the best policy when insuring your property.