British Columbia doesn’t make home insurance mandatory, but considering how a home is such a large asset, it’s understandable if you aren’t willing to put it at risk and leave it uninsured.
For those asking themselves the question “Is home insurance mandatory”, you can also try visiting this site to learn more.
Is home insurance mandatory in BC?
The answer is no; purchasing home insurance is not required in Canada. However, some groups like landowners or mortgage providers require beneficiaries to have home insurance to receive their services or benefits.
It’s also worth noting that, even if it’s not needed by your living arrangements, obtaining home insurance is strongly suggested to cover the items that are most important to you when a disaster happens.
When considering the advantages of home insurance, you may ask what it covers and why it is worthwhile. Most individuals buy it to protect four things at the most basic level:
- Your home’s construction; other structures on the property, such as sheds or detached garages
- Your personal property, which includes all of your possessions
- Liability in the event of misfortune or other accidents
How does homeowners insurance work?
Do you have any questions about how house insurance works in British Columbia? Unlike condo and tenant insurance, house insurance covers coverage for the structure.
The insured value of the house, whether it is the Actual Cash Value or the Replacement Cost Value, accounts for the majority of the cost of house insurance.
Replacement Cost Coverage is usually the preferable option because it covers the cost of repairs or replacements of identical kinds and quality without taking into account depreciation.
Most home insurance contracts are designed to encapsulate the physical property, but you’ll also need to take into account additional factors, like removal of litter and building debris, as well as bylaws that need to be factored in. If a claim needs to be processed, the additional costs brought about by these extra conditions and circumstances adds up to a significant additional fee.
Also, note the following conditions that should also be taken into consideration when deciding if you need home insurance.
Tenants need to get separate insurance of their own
Tenants need to be extremely aware that they’re not protected or insured on a home that’s not their personal property. For example, if a fire or burst water line causes damages, you’d be solely on the hook for the repairs and replacement of any damaged goods, even if your landlord had their own policy to cover.
Instead, you’ll need to resort to renter’s insurance to properly safeguard the property and goods you’re renting. These policies are specifically designed for tenants and provides separate coverage for most common sources of losses and damage. In the case that your landlord is residing with you in the property, you might be able to finesse both coverage policies to cover all the damages between you and them.
Renovations have a bearing on your insurance
Making changes like painting your walls a different colour to mix it up won’t affect your homeowner’s insurance in any significant ways.
If you’re taking on a major renovation project like changing the flooring, adding an additional wing, or finishing your basement, it’s likely the insurance coverage for the home will be affected. Verify any changes with your insurance provider before starting any improvements.
Reasons why you should get home insurance for your property in British Columbia
There are a few other things to bear in mind if you plan on owning a home in British Columbia, aside from the obvious of wanting to secure your home, your funds, and your goods within.
Lender requirement: If you’re financing your property with a mortgage, your lender will likely need it. This is significant since a lender may request proof of homeowner’s insurance at any moment; it’s prudent to be covered not only for their benefit but also for your own.
Frequently Occurring Earthquakes: If you’ve ever lived in British Columbia, you’re aware of the high frequency of earthquakes the region experienced due to its proximity to tectonic plates.
Every decade or so, an earthquake occurs that has the potential to cause structural damage to any building or property that is unlucky enough to be in the wrong spot at the wrong time, so having this coverage can provide you with peace of mind.
Forest Fires: Unfortunately, wildfires are a common occurrence in British Columbia, wreaking devastation on the region.
There were 560 similar fires in 2018, resulting in the eviction of hundreds of families. Because the last few years have been among the worst in history, make sure you get homeowner’s insurance to protect yourself from an all-too-common hazard.
Factors influencing your important rate factors influencing your rate
Whether you’re still looking for a new home and doing research on insurance ahead of time, or you’re looking to save money, here are some things to think about when calculating your overall premium.
Square Footage: The larger the size of the home, the more expensive it will be to restore it if something goes wrong, which is why square footage is one of the most important factors impacting the total cost of your homeowner’s insurance.
Claims History: If you haven’t used your homeowner’s insurance in the past, or if you haven’t used it at all, you may be eligible for a lower overall rate.
How can you save money on your house insurance in British Columbia?
If you need to make your coverage cheaper, there are a few options. The most important thing, after all, is that you be protected. Consider the following parameters to see if you can save money on your monthly or annual payments.
Increase your deductible: Insurance coverage in B.C. might be on the pricey side due to the high cost of rebuilding properties and the different hazards in the area that you need to be protected against.
One approach to compensate for this is to increase your deductible if something goes wrong. Many people look into the range of $1000 to $2500, so talk to an agent about your alternatives.
Installing a home theft alarm or smoke alarm can assist lower overall risk, resulting in an insurance reduction. Maintain your renovation: Make sure your electrical, heating, and plumbing systems are updated and in good working order.
If you have the option, pay the annual payment rather than the monthly fee.