Shopping for insurance can feel overwhelming, especially considering and assessing the abundant options. You will likely come across the terms comprehensive and broad form, and understanding these coverage types will help you make informed decisions regarding the insurance policy that would be best for your home insurance needs.
Comprehensive Insurance
This insurance will cover your home and its contents against all risks that have not been specifically excluded from your policy. War, terrorism and wear and tear are examples of excluded risks. Because these are considered minimal in most parts of Canada, most homeowners will experience little impact when making a claim. For this reason, comprehensive insurance is one of the most popular types of insurance for the average homeowner.
While it may be tempting to sign a comprehensive insurance policy right away, you must first fully understand the exclusions and limits on certain types of claims. If you have a very expensive jewelry collection, for example, or other valuable objects, you should consider purchasing additional coverage as a comprehensive policy may not be enough.
Broad Form Insurance
With this kind of insurance, your property would be covered against all risks except those specifically excluded. Still, unlike comprehensive insurance, the contents of your property will not be covered under your policy unless a risk is specifically named. You need to take a close look at your policy to see what your insurance will cover, and if a risk is not specifically listed, your insurance will not cover the loss.
This insurance is suitable for those who own a home but have little value inside the house.
You could, for example, name a fire as a peril in your broad form insurance policy if you only want to insure your contents against a fire loss. However, if your insurance company determines that the damage came from lightening or arson, your claim would be denied as those perils will not be listed.
This information can sometimes be complicated, but knowing your options and understanding the advantages and disadvantages of each option will help you make the right choice. A reputable broker will discuss the details surrounding each policy and will help you select the home insurance coverage that is best for you. For peace of mind, it is generally recommended that you stick to comprehensive coverage because this will provide you with coverage against many losses, and you can add additional limits to cover losses. In contrast, broad form coverage is far more limited.
The experts at Leibel Insurance will help you understand your policy because we care about our clients and ensure you have the right coverage. We will discuss every detail and answer all your questions regarding homeowners insurance. We have years of experience, and our reputation sets us apart from other insurance companies, so contact us today to speak to one of our brokers!