What Does Your Insurance Cover?

A lot of Canadians don’t realize that home insurance can vary significantly from one company to another. What’s covered in your neighbour’s policy, for example, may not be covered in your own.

Here are some common examples:

Flood damage. Unless you have a special provision or rider in your current policy, damage from a flood or other natural disaster may not be covered.

Home businesses. Most home insurance policies don’t cover business assets. So, if a burglar steals the computer from your home office, you’re on the hook to replace it.

Sewage backup. Many home policies don’t cover sewage backup.

Frozen pipes. Some insurers won’t cover damage that results from your indoor plumbing freezing.

Tenants. Considering renting a room, or your entire home, to travelers and vacationers? Services like HomeAway and Airbnb have made it a popular option. However, your current home policy may not cover damage caused by these tenants.

The bottom line: Talk to your insurance agent about what’s covered and what’s not. In most cases, your agent will work with you to ensure you’re adequately protected.