When it comes to home insurance in Alberta, misinformation can lead to costly mistakes. Many homeowners hold onto myths that can affect their coverage and peace of mind. Let’s debunk some of these myths and provide you with the facts you need to navigate the world of home insurance effectively.
Myth #1: All home insurance policies cover the same things
Fact:
Not all home insurance policies are created equal. While there are common coverages like protection for your dwelling, personal property, and liability, the specifics can vary greatly between providers. Some policies have broader definitions of covered perils, higher limits, and more add-ons available. Take time to understand what each insurer includes and ensure you get the right coverage for your specific needs.
Myth #2: Home insurance won’t cover flood damage
Fact:
Standard home insurance policies in Alberta do not cover overland flood damage. However, you can add optional overland flood insurance to get protection. Assess your flood risk and consider adding this important coverage if needed.
Myth #3: Home insurance will cover gradual damage
Fact:
Standard home insurance policies exclude gradual damage, such as wear and tear, deterioration, or maintenance issues. You need to purchase a home systems protection add-on policy to get coverage for gradual leaks, mechanical breakdowns, and other gradual damage events. With this add-on, claims for gradual damage will likely be allowed.
Myth #4: I don’t need replacement cost coverage
Fact:
Replacement cost coverage is important for fully protecting your home. This type of coverage pays the full cost of rebuilding your home at current construction costs if a loss occurs. Opting for a cheaper policy with extended recovery instead leaves you vulnerable to high out-of-pocket costs for rebuilding after a major loss. The small premium savings aren’t worth the risk. There are ways to reduce your premiums, such as bundling policies or raising deductibles. Reputable insurance providers like Liebel Insurance in Alberta can advise you on obtaining adequate coverage while lowering costs.
Myth #5: Home insurance covers earthquake damage
Fact:
Earthquake damage is not included under standard home insurance policies in Alberta. You need to add an earthquake endorsement or get a separate earthquake insurance policy to get protection. Ensure you know your earthquake risk and get coverage if required.
Understanding the facts about home insurance in Alberta can empower you to make informed decisions. Dispelling these common myths ensures you have the right coverage for your home and belongings. Always consult with an insurance professional to find a policy that meets your needs, and remember that being informed is your best defence against potential pitfalls in the insurance world.
About the Writer
Pournima Vasaikar is a seasoned writer with a Digital and Content Marketing Diploma from York University. She has years of experience in the beauty, lifestyle, and travel industries. She creates SEO-friendly, easy-to-consume content. She aims to deliver exceptional content that inspires, informs, and engages readers.
