Home insurance, is a type of property insurance, that covers your personal residence whether it is a freehold residence, a condominium or a rented property. Home insurance policies cover not only your physical residence but also your possessions against covered perils such as fire, falling trees, water, theft, and even mysterious disappearance. When structured correctly, these policies provide coverage against those causes of loss most likely to cause significant financial loss and hardship.
Proper home insurance, also referred to as house insurance, has become more and more important in recent years as the frequency of claims has shifted upwards. Water losses have become more prevalent as municipalities have lagged in upgrading their systems and green space is encroached on. More than half of all property claims for residences are now attributed to sewer backups and overland water losses.
Ensuring your policy has the proper coverages and adequate limits for those claims most likely to impact you is more important than ever. If your present insurer provides sewer backup coverage but only includes a small limit such as $25,000, how long will it take to exhaust that limit in the event of a claim?