The CBC recently featured an article on some common misconceptions of home insurance that most homeowners are unaware of. Make sure you are not one of them and familiarize yourself with these issues before you run into trouble.
The list of key misconceptions are as follows:
1. The 30 day vacancy rule
If you own a rental property and it remains vacant for a period of more than 30 days, your insurance policy will not cover loses caused by such things as water or fire damage.
2. Jewelry is only covered up to a limit
Unless you have your finer pieces appraised and purchase additional coverage, your insurance policy likely only covers theft or loss up to a certain limit, which could be vastly less than what your pieces are worth.
3. Limitations for rare items
Just as it is with valuable jewelry, antiques or collectors items also might not be covered in your policy unless you get additional coverage. If you want to insure your stamp collection is covered, get it appraised and purchase the extension.
4. Sewer backup, earthquakes not covered on basic policies
Until recently, these natural catastrophes were covered in most policies but many basic policies have now removed them. Make sure you are covered if you are concerned about it.
5. Maintenance exclusions
Simply put, if you don’t maintain your property, you can be denied coverage for things like damage caused by pests or water damage from a leak that was ignored.
6. Upgrades could affect your policy
If you are increasing the living space of your home or upgrading the finishes, it is imperative that you let your insurance company know or your coverage could be cancelled or denied.
For the full article, visit cbc.ca
Photo credit: Benimoto / Source / CC BY
