If you are buying a house and have a mortgage, homeowners insurance is a legal requirement in Manitoba. This insurance will protect your investment and personal property from the day you take possession until the day you move out.

It’s important to have insurance in place before your closing and possession dates, as it ensures that your new home and assets are protected. Additionally, lawyers are unable to hand over house keys until they receive proof of insurance, so having it in place will allow you to move in without any delays.

Your premium will reflect on the cost of rebuilding your home in the event of a total loss. This includes the cost to rebuild the structure, replace its contents and any detached structures, and additional living expenses.

Be sure to tell your insurance broker if you have a burglar alarm/fire and smoke detector system, a new home, or are mortgage-free. Some insurance companies offer discounts that could be applied to your premium. There are a couple of different factors that play into the cost of your home insurance policy.

Generally, the main factors behind the cost are:

• The cost of replacing your home
• The neighborhood you live in
• Your past insurance history
• The broker providing the quotes
• The construction of your home
• The age of your home

It depends on the type of insurance policy you have and what your provider covers. Some home insurance policies may offer discounts for certain features, such as sprinklers and alarms, that reduce the risk of damage to your home.

Most home insurance policies offer discounts for specific features that can reduce your risk of damage. These features may include smoke detectors, burglar alarms, sprinkler systems, fire alarms, and home security systems. Additionally, if you have recently updated your roof, plumbing, electrical wiring, or other features, you may be eligible for a discount.

Other home insurance discounts include new home discounts, as well as discounts for being claims free, a longtime policyholder or for being a senior citizen.

It’s important to speak with your broker at Guild Insurance to ask about any discounts you may be eligible for. Keep in mind that discounts vary from provider to provider, so it’s always a good idea to shop around and compare policies to ensure that you are getting the best coverage at the best price.

When you buy a homeowner’s insurance policy, you should be provided with a list of “covered events” by your insurance broker. Anything on this list is covered, which means you can make an insurance claim if any of those events happen to you.

Anything not on the list is not covered, which means you can’t make a claim. Commonly covered events include:

• Fire damage
• Smoke damage
• Damage caused by weather (including hail, wind, and lightning )
• Theft or burglary
• Vandalism
• Damage caused by vehicles (such as a driver crashing their car into your house)

The coverage provided in these situations is straightforward. In other cases, though, home insurance coverage can get a bit more complex. The best example is water damage. A common question in the insurance world is “does home insurance cover water damage.”

The simplest answer to that question is “Sometimes.” In most cases, for water damage to be covered, it must be sudden and accidental—such as a burst pipe—your insurance policy will cover the damage.

If flooding occurs because of a natural disaster, you would unfortunately not be covered unless you purchased the proper overland flood extension on your policy.

Home insurance also includes liability coverage. If someone comes to your home, slips on your floor, and sues you for damages, your liability coverage would take effect to cover legal costs, medical expenses for the plaintiff, and settlement expenses if you were negligent.

As mentioned above, your home insurance policy should list “covered events.” Any event or incident not included on that list is something you should assume is not covered by your policy. Here are a few common types of damage or home-related expenses that will not be covered by your home insurance policy:

• Damage from most natural disasters (including floods, hurricanes, earthquakes, landslides/mudslides, or sinkholes)
• Damage caused by warfare
• Damage caused by nuclear accidents
• Termite damage (including repair costs and removal costs)
• Tree removal costs
• Routine maintenance, repair, or replacement costs (including roofing, plumbing, HVAC, appliances, and more)

Ultimately, the most important thing to understand is that damage needs to be caused by a covered event for it to be safeguarded under your insurance policy.

For instance, if a massive hailstorm breaks several windows in your home, you can claim that damage because it was caused by a covered event. If your roof needed replacing due to normal wear and tear you would not have coverage

The definition of Peril is the exposure to the risk of being injured, destroyed, or lost. When it comes to home insurance coverage, common all perils coverage would include:

Fire & Smoke:

Fire and smoke damage can be catastrophic, so it is important to have the right fire insurance protection in place, such as smoke alarms and fire extinguishers, and the right insurance. Guaranteed replacement cost coverage can provide financial protection in the event of fire or smoke damage to your home, offering compensation for repairs or replacement of damaged items up to the limits of the policy.

Click Here to Read ‘Put out these home fire hazards before they start’

Lightning Strikes:

Lightning strikes can cause significant damage to homes. To be protected in case of lightning damage, make sure to have the right insurance coverage with guaranteed replacement cost coverage. This coverage can provide compensation for repair and replacement costs, up to the full replacement cost of your home or the limits of your policy.

Windstorms and Hail:

Windstorms and hail can cause extensive damage to homes and property. Investing in wind protection such as storm shutters and strong roofing materials can help mitigate the risk of wind damage to your home, but it is also important to have the right insurance in place. Guaranteed replacement cost coverage can provide you with compensation for the cost of repairs or replacement.

Explosion:

Explosions can cause major damage to homes and other structures, leaving homeowners with an expensive repair bill. Guaranteed replacement cost coverage is an important type of property insurance that pays for the full cost of replacing or repairing structures, as well as personal belongings that were damaged in an explosion.

Electrical Current:

Electrical currents can wreak havoc in your home, causing charred walls, melted wiring, and appliance and equipment malfunctions. To ensure you don’t have to pay the full cost of repairs and replacements, guaranteed replacement cost coverage is essential. This coverage pays for the cost of replacing your home or other structure, plus any damaged personal belongings.

Damage from Aircraft, Car or Vehicle:

Damage to your home or other structure caused by an aircraft, car, or another vehicle can be costly to repair. To help protect yourself from the financial burden of such damage, having guaranteed replacement cost coverage is essential. This coverage pays for the full cost of replacing

Theft:

When it comes to theft, guaranteed replacement cost coverage will provide you with compensation for the items that were taken from your home. This may include furniture, appliances, electronics or personal items. The insurance company will assess the value of the items that were taken and provide you with the necessary funds to replace them.

Falling Objects:

Falling objects can also be covered under guaranteed replacement cost coverage. This could include anything from a tree that has fallen on the roof to hail or wind-blown debris. In these cases, the insurance company will assess the damage and provide you with the funds to repair or replace the affected items.

The simple answer is Yes! Home insurance companies can deny claims. If you make a claim involving termites, for example, your insurance company will deny the claim because your policy does not specify coverage for that type of damage.

Even in cases where the loss results from a covered event, there is a possibility that your insurer could deny the claim.

A good example is if your roof collapses during a heavy snow and ice storm. Typically, this damage could be covered by your policy.

However, if the insurer could prove that your roof had been in bad need of maintenance or replacement, they could deny your claim with the argument that the collapse occurred because of homeowner neglect.

While all home insurance policies have the same basic shape, you can purchase additional optional coverage if you need to fill in a gap in your policy’s covered events.

These extra policies or riders expand your ability to make insurance claims. If you have specific personal property items that are very high-value—such as certain jewelry pieces or artwork—those items may not be covered under your standard policy.

You would need to purchase additional coverage. These additions, of course, will increase your insurance premiums.

The answer to this question will vary depending on the homeowner and the value of their property. The good news is that you won’t typically be the one who needs to answer this question.

Your mortgage lender will require that you have a certain amount of coverage for your home, and your insurance broker will know how to build a policy that makes sense for your property.

At a minimum, though, your policy should be able to cover the full replacement cost of your home, in the case of a total loss. Replacement cost is different than the sale price or market value because it determines what it would cost to rebuild your home.

You should also have enough contents insurance to cover the replacement costs of your personal belongings, including electronics, furniture, sporting equipment, clothing, and more. Again, the big variation in this category is if you have high-value items that require additional coverage.

The best deductible for home insurance is a personal choice that depends on your individual financial situation and risk tolerance. A deductible is the amount of money you need to pay out of pocket before your insurance policy kicks in to cover the rest of the costs of a covered loss.

In general, the higher your deductible, the lower your monthly premiums will be. This is because you are taking on more of the financial responsibility in case of a loss, which means the insurance company has to bear less risk. On the other hand, if you opt for a lower deductible, your monthly premiums will be higher but you will have to pay less out of pocket if a loss occurs.

It’s important to choose a deductible that you can afford in case of an emergency. If you choose a high deductible and something happens to your home, such as a fire, you want to make sure that you have the funds available to cover the cost of the deductible. You also want to make sure that the deductible is low enough that you won’t be financially ruined if a loss occurs.

As your insurance broker we can help you weigh the pros and cons of different deductible options and determine what is best for your situation. Ultimately, the goal is to find a balance between a deductible you can afford and a monthly premium that fits your budget.

As you start comparing home insurance options, remember that you aren’t just comparing policies; you’re comparing carriers. Not all insurance companies are the same and finding one that you feel comfortable with should be a priority component of your search.

Below, we have listed a few attributes that you should look for as you determine which insurance carrier is best for you.

• High ratings: J.D. Power is known for its ratings of companies in a range of different industries, including insurance. These ratings, which are based on a survey sample of customers, grade different aspects of a carrier, including customer service and range of offerings.
• Positive reviews: Though not nearly as formal or concise as J.D. Power ratings, customer reviews of insurance companies can tell you a lot. Does a carrier have a reputation for being slow with claims processing? You can use reviews to learn what the customer experience is like with an insurance company.
• Above-and-beyond customer service: As you are reading reviews or looking at J.D. Power ratings, pay attention to details about customer service. You want to be able to get in touch with a rep for your insurance carrier easily, whether you’re making a claim or have a question.

Firms with reputations for strong customer service are top options. You can get a sense of how much of a priority customer service is by visiting a carrier’s website and seeing which tools they offer (live chat, customer portals, easy online claims systems, etc.) to make a customer’s life easier.

Fairly-priced premiums: While low premiums aren’t everything—your deductible rate is a huge consideration—you certainly don’t want to overpay for coverage. Comparing coverage options across several different companies can tell you if a carrier is in line with the competition or charging significantly over or under the average.

Focusing on these four attributes will help you to find the best insurance company to provide the coverage that you are seeking. Whatever your lifestyle or whichever home you live in our insurance brokers are here to answer your questions and provide you with a policy that is built for you.

If you have bought or are buying a home, you will need home insurance. Mortgage lenders throughout Canada require homeowners to insure their homes. However, just because this requirement is there doesn’t mean home insurance is an open and shut case.

On the contrary, there are lots of little subtleties that will affect how much you pay for home insurance and how the coverage works for you. Below, we have attempted to answer a few of the most frequently asked home insurance questions.

At Guild Insurance Group, we believe that a comprehensive insurance policy is typically the best option for homeowners in Manitoba. This type of coverage offers a wide range of protections, which can provide peace of mind in case of an unexpected event.

When choosing the best insurance policy for your home, it’s important to consider your specific needs and financial situation. Factors such as the value of your home, the location of your home, the contents of your home, and your personal circumstances should be taken into account.

A comprehensive policy typically includes coverage for events such as fire, theft, and water damage, as well as personal liability coverage. You may also be able to add additional endorsements or coverage options, such as increased liability limits, water damage coverage, and more.

At Guild Insurance Group, our goal is to help you find the best insurance policy for your home. Our brokers will work with you to understand your unique needs and help you select the policy that provides the best protection for you and your family.

Home insurance can work in a few ways, depending on the situation and the type of coverage you have. If your home was damaged or destroyed in a fire, the policy would kick in to help you rebuild or repair the home.

It would also pay for the replacement of possessions in the house damaged by the fire, such as furniture, appliances, and electronics.

Home insurance can also provide liability coverage. If a guest in your home slips on the kitchen floor and breaks his arm, he could sue you for liability.

Since home insurance policies include personal liability, your policy would help cover legal costs, medical costs, or settlement expenses.

As with other types of insurance, your home insurance coverage comes with a deductible. The deductible represents your out-of-pocket expenses, which can vary from one policy to the next. Policies with higher deductibles generally have lower premiums.

Guaranteed Replacement Cost is a feature that is offered by some home insurance policies, including those provided by Guild Insurance Group. It provides coverage that is equal to the full cost of rebuilding or repairing your home, even if the cost exceeds the limits of your policy.

For example, if you have a policy with a coverage limit of $500,000, but it ends up costing $600,000 to rebuild your home after a covered loss, a guaranteed replacement cost policy will pay for the full $600,000 in rebuilding expenses.

This feature is important to consider if you live in an area prone to natural disasters or if the cost of building materials and labor in your area is increasing rapidly. It provides peace of mind knowing that you are fully covered in case of a loss, no matter the cost.

Click Here to find out more about Guaranteed Replacement Cost Coverage

A comprehensive insurance policy is the most extensive type of coverage you can buy. Comprehensive coverage protects you from most types of risks, including fire, lightning strikes, theft, vandalism, and vehicular impact.

The coverage applies to both the building itself and all (or most) of the contents. In a comprehensive home insurance policy, the insurer must specify the types of risks or perils the insurance does not cover. The policy must cover any perils not explicitly mentioned as uninsurable.

Broad insurance is a basic home insurance policy that offers comprehensive coverage for your dwelling but only named perils coverage for your belongings. This means that your belongings are only protected against specific risks that are listed in your policy.

If a risk is not named, you won’t be able to make a claim for it. While a broad policy comes with some limitations, it also offers the benefit of lower annual premiums compared to more comprehensive coverage options.

As mentioned above, comprehensive home insurance protects your home and its contents from most perils. Typically, perils that are thought to be “predictable” are not covered. If your home is on a floodplain, then flooding is seen as predictable and isn’t covered.

If your pipes freeze, burst, and cause damage to the home, insurance likely won’t cover it because the loss was preventable.

You should review any home insurance policy before buying, to see exactly which perils are considered predictable or preventable.

In other situations, you might have the option to buy additional insurance coverage to protect against specific perils.

For instance, overland water or flood coverage is not included in the average comprehensive home insurance policy, but you can buy it if you live in an overland water or flood-prone area.

You can also buy extra insurance to protect yourself against sewer backup, to cover detached structures (such as sheds), or to insure particularly valuable possessions (such as jewellery, books, tools, or instruments).

Simply choosing between comprehensive, named perils, and broad insurance coverage is not the only way to change how much you are paying in premiums.

On the contrary, there is a range of other factors that can impact the cost of your home insurance policy. These include:

• Payout terminology: How are payouts described in your insurance policy? A policy that pays out actual cash value for your home and contents only considers what those things are worth today—not what it would cost to replace them.

  A policy that pays out full replacement cost, meanwhile, must pay for you to rebuild the property and replace the contents regardless of value depreciation. Naturally, the latter option costs more.

• Location: A home located more than 13 km away from a fire hall or in a riskier area (a neighbourhood with high crime levels, overland water, or flood zone) always costs more to insure.
• Age of components: How old is your home’s roof, plumbing, or wiring? The older each of these components is, the riskier the home is to insure.
• Swimming pools: Swimming pools are huge liability risks. Homes that have them always have higher insurance premiums.
• Security and protection: Does your home have a modern security system? How about a monitored fire alarm? These inclusions can help reduce your home’s insurance costs.

Some of these items are out of your control. If you’ve bought a house already, you can’t very well move it to a less dangerous location.

However, you can replace pipes, plumbing, roofing, security systems, or fire alarms to reduce your property’s risk profile.