Last week, we shared information on some of the key aspects to consider when insuring your home for the first time or modifying your existing home insurance policy.
As mentioned earlier, climate change-driven extreme weather events and the costs of climate adaptation will continue to significantly impact insurance and re-insurance costs for the foreseeable future.
This week, we will highlight some of the other insurance options one can consider, such as those used by renters or business owners.
Tenant’s Insurance
If you rent an apartment, condominium, townhouse, or a bigger home, you should seriously consider buying a renter’s insurance policy. It protects you against any damage or loss of possessions inside the rental unit, or any accidental damage occurring inside the apartment or condominium building you rent in.
Insurers usually consider some key factors before finalizing your insurance premium amount, such as:
- Type of residence—its age, size, location, etc.
- Type of policy and insurance coverage you are seeking.
- Value of your personal belongings inside the rental unit.
- Demographics, crime rates, fire stations, etc. in your neighborhood.
- Your claims history and the amount of deductible you want to pay.
Condominium Insurance
A condominium insurance policy will cover any damage or loss to the inside structure of your condo, any of your belongings therein, and your storage locker. It will also cover personal liability claims if someone is injured on your property, and additional living expenses stemming from an inability to live in your condo for some time.
Business Insurance
Whether you run a home-based business or one out of a physical office space, you should get a business insurance policy. Coverage for home-based businesses is limited so be sure to check what all your policy’s liability limit covers if you run a business from home.
Insurance for Seasonal Homes, Mobile Homes, Cottages, Trailers & Boats
Insurance coverage is very useful to protect your weekend getaways against any unforeseen damage. Various insurers offer seasonal home insurance policies that can provide comprehensive coverage for any of these properties.
Keeping your insurance premiums affordable
When you buy insurance, you pay a premium at regular intervals to keep the policy and its coverage active. Some things to keep in mind:
- Shop around for the best deal.
- Maintain a good credit score.
- Bundle your home and car insurance for a lower premium.
- Consider paying a higher deductible to keep your premium payments low.
- Any home renovations, improvements or upgrades can earn you a discount on your insurance premium.
- Pay your insurance premium annually instead of monthly.
- Check with your insurer for additional discounts for lower insurance risks, such as:
- Being a non-smoking household.
- Having no mortgage.
- Having a home security system or 24-hour condo security.
- If you are a homeowner and over 50 years old.
Additional Resources
Do get in touch with the RE/MAX Royal Team Sachdeva Realty for more information about any of your real estate needs.
Have a great weekend!