Home insurance: additional coverage and services
Sorting through all the ins and outs of home insurance isn’t easy. A basic policy doesn’t cover every kind of damage, and everyone needs different coverage depending on their situation. In addition to optional coverage options, some insurance policies offer complementary services. Read on; we’ve broken it all down for you.
Standard home insurance coverage
An insurance agent or broker will normally offer you a so-called comprehensive (or “all perils”) policy for your home and its contents. What that means is that your residence and your personal effects are covered against most kinds of accidental damage (think fire, theft and vandalism).
When it comes to water damage, the kind caused by a broken or overflowing toilet, sink or shower is usually the only kind covered by a basic policy. So if a pipe bursts while you’re away, or your teenage daughter, too busy texting her friends, forgets that she had started running a bath, and water perfumed with bath salts floods everywhere, you’re covered.
Your home insurance also includes civil liability coverage. This protects you in the event that you are found responsible for involuntarily causing injury or property damage to someone else. To learn more, see our Tips & Tricks instalment on liability insurance.
Do you own a condo? Read about how to properly insure it. Are you renting your home? Find out why taking out tenant insurance is important.
Optional home insurance coverage
Some types of coverage aren’t automatically included with your home insurance policy. You need to adjust your contract to your needs and your situation. In insurance jargon, these coverage options are known as endorsements or riders: “add-ons” to your policy. Following is a list of the most popular ones.
Water damage
Water damage presents a number of special cases. Coverage is determined based on where the water came from.
Ground water and sewers
The “Water Damage – Ground Water and Sewer” endorsement covers situations like damage caused by ground water seepage or a sewer backup. Some insurers divide this endorsement into two separate ones: “Water Damage – Ground Water” and ”Water Damage – Sewer Backup.” Depending on where your home is located, its age or its condition, these endorsements may not be available.
Coverage against flooding (specifically, against a sudden rise in the level of a body of water) can also be added to this endorsement. This coverage must be specially requested, as not all insurers sell it. And, depending where your home is located, you may be refused coverage.Above-ground water
If rainwater or melting snow leaks into your house via the roof, or if your eavestroughs suddenly overflow, the “Water Damage – Above-Ground Water” endorsement provides coverage.
Swimming pool or spa
Do you enjoy relaxing in your pool or spa after a long day at work? It would be a shame to have to go without this if you couldn’t afford to replace it. To be sure this equipment is covered by your home insurance, add the appropriate endorsement to your policy.
Earthquake damage
Earthquakes are not among the risks covered by a basic home insurance contract. You would therefore have to add an endorsement if you wish to make a claim for damage to your house or possessions caused by a seismic event.
Oil leak or spill
Is your house heated by an oil-fired furnace? Mention this to your insurer and ask what kind of coverage they can offer. Not all insurers provide the same degree of coverage. The cost of demolition, reconstruction and decontamination required in the event of an oil spill can be astronomical. Stack the cards in your favour: think about adding this endorsement to your contract.
Good to know
Do you own a boat, jet ski, canoe, kayak or other watercraft? Are there valuables in your home, like paintings, jewelry or collector’s items? Tell your insurance company: they can adjust some of your coverage limits to suit your needs.
Complementary assistance services
Many insurers provide their customers with access to telephone-based assistance services. They are often free or available at a low cost. Legal advice and assistance in the event of identity theft are the most frequently offered services.
With a help line like this, you can get advice from a lawyer on all kinds of situations: a dispute with a neighbour, custody issues in the event of separation, estate matters, etc. You’re not limited to issues concerning your home!
These services add a lot of value to your insurance, so you should keep them in mind when shopping around for a policy. Ask different insurers what they have to offer.
Did you know?
The Assistant, a privilege available with the home No-Stress Policy® from CAA-Quebec, gives you access to 5 help lines, free of charge. In addition to legal advice and help in case of identity theft, you can also get assistance and advice on your pet’s health, your personal life, your own health and, of course, your home. We make your everyday life easier!
To sum up, the key to getting the right coverage is to accurately describe your situation and your property to your insurer or insurance advisor. Don’t leave anything out! Your insurance agent will then be able to offer you the coverage options that perfectly match your needs.