What is home insurance?

Author: Marwah Law |

Home insurance is an essential aspect of homeownership. While it is not mandatory by law, your mortgage lender may require it if you are buying a freehold property. Condominium properties have two layers of insurance: one provided by the condominium corporation and another obtained by the owner of the unit.

Home insurance covers loss and damage to your property, protecting you from events such as fire, theft, water damage, and more. The coverage is typically divided into three main types:

  • Dwelling Coverage: This covers the actual building and protects against specific events known as insured perils, such as fire, smoke, and theft.
  • Contents Coverage: This protects your personal possessions, including furniture, electronics, and clothing, against theft, damage, or vandalism.
  • Personal Liability Coverage: In the event that someone gets injured on your property, personal liability coverage will cover legal defense and settlement costs.

It's important to assess your coverage needs and budget, as each coverage type has its own limits. Speak with an insurance broker or agent to find the coverage that suits your requirements.