Home Insurance

By Lianne Snider

Congratulations! You're making a move from your family home to an exciting, new, adult lifestyle community. You've spent considerable time and effort in choosing the right neighbourhood for you, and the same consideration should be given to the insurance coverage which protects your investment.

It is essential to maintain your personal property and liability coverage, and, where applicable, insurance for the structure of your residence. Whether you are moving to a condominium or a freehold residence, common features among adult lifestyle communities produce special insurance needs and you should consider the following points:

Review the amount of your content's coverage, in addition to the residence building. You might be surprised at the total cost of replacing the entire contents of your home with new items today!

Does your policy afford additional property coverage for a spouse or ageing parent residing in a nursing home? Also consider coverage for family heirlooms, fine arts, or jewellery.

Check for discounts, such as mortgage-free or security discounts.

With condominiums, the corporation insures the building, including your basic unit; that master policy, however, will not cover your contents or any upgrades or improvements to the unit, made either by you or the previous owner. Be sure that you know which features in your home are improvements from the original design and check that your insurance limits allow for their replacement.

Sometimes losses which are usually the responsibility of the condominium corporation can be assessed to the unit owner(s). In such instances, it is essential that your policy contains Loss Assessment and Additional Unit Protection. Loss Assessment will cover assessments for losses to common areas, permitted by the corporation bylaws and applied to you and other unit owners. Unit Additional Protection will provide coverage for your unit in instances where the condominium corporation's policy is inadequate.

Your condominium corporation's policy contains a deductible, as does yours. In some instances, you or the other unit owners collectively could be required to pay the deductible, so it is important that your policy also covers such an occurrence.

If a loss prevents you from residing in your home, Loss of Use insurance covers the additional expenses required to maintain your standard of living.

Review your current liability limits. Primary liability for both home and automobile can be increased for a small annual premium by purchasing Excess Liability coverage.

In Canada or abroad, secondary or seasonal homes need property damage and liability insurance. Keep in mind that some conditions, such as location, can make it more challenging to arrange coverage. For example, not every insurer can cover a property located in Florida or on an island, and your broker may require additional lead time to secure protection for you.

Snowbirds need to review insurer requirements for unoccupied residences. Arrange for someone, perhaps through your community's security services, to check on your home at least as often as stipulated in your policy. There are a variety of policies available in Canada, as well as varying features, limits, and additional coverages between insurers. Your broker, however, will be happy to review the differences with you. Your best guideline is to always consult your independent broker so you can make informed choices and enjoy your home with peace of mind.

Lianne Snider is a property specialist with Firstbrook Cassie & Anderson Ltd. (In Canada or abroad, secondary or seasonal homes need property damage and liability insurance. Keep in mind that some conditions, such as location, can make it more challenging to arrange coverage. For example, not every insurer can cover a property located in Florida or on an island, and your broker may require additional lead time to secure protection for you. www.fcainsurance.com), Lianne can be reached at 416-486-1421.