Is Home Insurance Legally Required in Canada?
Often, people are unsure as to whether home insurance is a legal requirement. It is understandable because car insurance is legally required, and home insurance can cover damages that many would be unable to afford. Despite this, home insurance is not a legal requirement in Canada and this post will take a closer look at home insurance and why this might be. So, if you are worried about home insurance and/or you are buying a property and trying to work out your running costs, then keep reading to learn more about home insurance in Canada and why it is a smart investment, despite not being a legal one.
Officially, you will find that property owners in Canada do not have to purchase home insurance by law. However, if you want to get a mortgage, then you will need a home insurance policy. Therefore, most people have home insurance because they need to take out a mortgage to purchase their home. If you fully own your own home, then you could go without home insurance, but keep in mind that this is a massive financial risk.
What Does Home Insurance Cover?
Leading on from this, you should know what home insurance covers, so that you can understand why it is such a good investment. Home insurance will provide financial protection for the building itself and any detached structures, the contents (all your possessions), living expenses (if you must move out during a claim), and civil liability (costs if you are found liable for harm caused to others by you or your property).
Reasons to Get Home Insurance
Although it is not legally required, there are a few reasons to take out a home insurance policy in Canada. Getting a mortgage is a primary reason as most people need to take out a mortgage to buy a home. You then have the financial protection that it offers, which can be a huge amount when you consider how expensive house repairs can be along with the value of all your possessions. Finally, you will find that home insurance gives you peace of mind knowing that your home and possessions are protected. You cannot put a price on peace of mind, particularly when you consider how important the home is.
Choosing a Policy
Choosing a home insurance policy can be tricky as there are different levels of coverage, as well as many different insurance companies to choose from. A great way to find home insurance Montreal policies and compare your options is to use an insurance broker, which will help you to get dozens of quotes online all in one place. You can then find the best deal for the level of cover that you need.
It is understandable why many people think that home insurance is a legal requirement in Canada. While it is not a legal requirement, you will find that most people do have this type of insurance, and this is for good reason when you consider the benefits.