6 2021

What Kind of Personal Insurance Do I Need?

by admin

Shopping around for personal insurance can be anxiety-inducing, as your research inevitably leads you down the rabbit hole of ‘disasters that could happen any day now. Unless you’re a homeowner with a mortgage, it’s tempting to put off buying personal insurance or just avoid it together. But this is a risky game to play because disaster could happen any day now. In the event of an emergency, theft, or accident, the last thing you need is a huge cost to worry about.

Insuring yourself, your family and your belongings is essential, but what type of personal insurance do you need?

That depends on your living situation.

Home vs. High-Value Home Insurance

Home insurance covers you and your family in the event that disaster strikes, damaging your home to the point that it’s unlivable or even destroying it completely. This includes:

  1. Fire
  2. Flooding due to sewage backup
  3. Damage that someone else causes to your home

In addition to covering the costs of repairs or rebuilding, home insurance may cover the cost of living somewhere else, such as a hotel, while repairs are being made or you’re looking for a new house.

Home insurance may also cover the cost of replacing anything stolen from your home in the event of a break-in.  

Moreover, home insurance protects your credit. Having the right home insurance plan in place protects your financial well-being in the event that someone injures themselves on your property. This is called liability, and it can sometimes be overlooked.

It’s also important to meet with your broker regularly to make sure your policy is still best-suited to you. If you’ve undertaken major renovations, it’s possible your home has increased in value.  Rising market prices are another factor that may cause the value of your home to exceed that of a regular insurance policy. If the value of your home exceeds $600,000, you’re in need of high-value home insurance.

Click here to request a free homeowner’s insurance quote.

Condo Insurance

Condominium insurance differs from homeowner’s insurance in that it covers your possessions and damage to the interior of the unit, not the exterior. The group that owns or manages the condo will have a separate policy in place to protect the property. Condo insurance may also protect you from a lawsuit should someone injure themselves inside your home.

It’s very important to review your condo board’s insurance policy and understand where their protection ends, so you know where yours should start.

Click here to request a free condo insurance quote.

Renter’s Insurance

Renter’s insurance, or tenant’s insurance, is probably the most undervalued in this category. A lot of people assume that renter’s insurance isn’t necessary, as many renters are young people who may not own much of value. But renter’s insurance can protect you against more than just damage or loss of your possessions; it can also protect you from:

  1. Living expenses should you need to vacate your apartment due to damage or maintenance
  2. Injury to visitors
  3. Accidental damage caused by you to your unit or common areas of the building

That last point is worth taking note of, especially if you’re just starting out on your own. Accidents happen, but having the right policy in place softens the blow and will make future landlords more likely to rent to you than if you damaged your last property without insurance.

Click here to request a free quote for renter’s insurance.

The Bottom Line

Shopping for personal insurance can be tedious, time-consuming, and a bit boring, but it doesn’t have to be. Prime Insurance in Surrey has a team of brokers dedicated to providing residents of the Lower Mainland with comprehensive plans tailored to meet the specific needs of your unique living situation.

Visit Our website to get started today.