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If you’re a Manitoba mortgage holder– or getting ready to be– you probably know you need home insurance. But how much insurance do you really need? What’s standard? And which add-ons are truly necessary?
Unfortunately, there’s no one-size-fits-all solution (but wouldn’t that be great if there was!).
You’ll want to ensure you get dwelling insurance (covers damage to your property) and enough of it to cover your property in case it were to get destroyed.
You’ll also need liability coverage to protect you in case someone injures themselves on your property. You’ll need at least $1 million of third-party coverage (though we recommend $2 million for the few extra dollars it costs to be more fully protected!).
And finally, you’ll need contents insurance. This will protect all the stuff in your home. How much you will need will depend largely on the individual.
In this post, we’ll look at these three major components of a home insurance policy and speak to each of them in more detail, including considerations when choosing how much insurance to get. Plus, we’ll look at some add-ons when you need them and when you don’t. By the end, you’ll be able to choose a policy confidently.
If you’re already well-versed in home insurance or would rather start by getting a quote, click here to request a quote today!
Standard home insurance in Manitoba typically covers both your property (any damage or loss affecting your belongings) and liability (any damage, loss, or injury someone suffers while on your property). You’re also covered for vandalism and burglary.
The most common claims covered by standard Manitoba home insurance are:
As a Manitoba homeowner, it’s important for you to know that there are two primary types of home insurance policies: broad and comprehensive.
A comprehensive policy, also known as a “special” or “all-perils” policy, provides the most coverage. With it, all risks to your home and contents are protected—except for any risks named in your policy as exclusions. Comprehensive policies are always our primary recommendation for our clients.
A broad policy also covers all risks (except for any risks named in your policy as exclusions), but when it comes to your contents, it only covers all named risks. That means that unless a belonging or valuable is specifically written into your policy, it won’t be covered.
As a mortgage holder in Manitoba, your mortgagor will typically require you to have:
This helps them ensure that in the event of a complete or partial loss, they can still get their money back!
Not a mortgage holder? Then there’s no minimum insurance requirement for you!
With standard home insurance, your possessions and valuables are calculated as a percentage of the value of your dwelling. Typically, they fall into the 60-80% range, but this can change depending on your insurance company.
To give yourself an idea of the value of your belongings, we recommend you do a basic home inventory.
Start by going through your most expensive items, things like jewelry, furs, and art. Then work your way down to your more common household items, like TVs, furniture, clothing, and appliances. This will give you a ballpark figure you can compare against your dwelling coverage.
Note: If you own any particularly expensive, rare, or hard-to-find items, we can increase your personal property limits to ensure you have enough insurance to cover the cost of replacing your items should anything happen to them.
As we mentioned above, your dwelling coverage covers the structure of your house. Your contents insurance covers what makes your house a home. And even though you most likely own possessions that are irreplaceable, contents insurance will at least allow you to replace the things that aren’t. So that you can continue having a functional home that enables you to build and create memories for years to come.
Your contents coverage will cover everything from personal belongings and valuables to appliances and furniture.
Liability insurance protects you financially in the event that someone else suffers loss, injury, or damage on your property. The minimum liability insurance allowed for Manitoba homes is $1 million, but it’s best to get $2 million because you never know what can happen.
It’s best to think about the worst-case scenarios here. For example: If someone were to fall down your stairs and not be able to work for the next 5 years as a result, would your liability insurance cover a claim made against you?
Because, as the saying goes, when it rains, it pours. Meaning when things go wrong, they can go wrong quickly! Making sure the right coverage– and enough of it– is the most important thing you can do when getting a home insurance policy.
Extra coverage options available to Manitobans are:
Not every household will need every add-on. Some won’t need any at all. But there are certainly types of additional coverage worth considering and spending a little extra on. We always recommend Service Line Coverage for Manitoba homes within the city limits. Also, Sewer Backup and Overland Water Coverage are very important if your basement is finished or if it houses a lot of items.
It’s very rare that you would need Umbrella Insurance—which you can think of as extended liability insurance—on your homeowner’s policy. That said, if the amount of liability coverage available in your standard or extra liability insurance wasn’t enough for your specific situation, you could add umbrella insurance to cover any difference on a loss.
Certain things will impact your home insurance rates and requirements, like:
Your coverage needs will change based on the “value of replacement” cost of your home: the cost of rebuilding your home or replacing/repairing any damages. Older homes often require more work and money to fix and replace. Or, they house hard-to-replace features. If your home’s value of replacement cost is above that of average construction, your premium rates will reflect that.
The type of home you own will dictate the level of home insurance you need. A bungalow will have different coverage requirements than a 1.5 story or a 2 story home.
Where your home is located can also affect your insurance rates and requirements. For example, if you’re close to a river or on low land, the premiums you pay may be higher than if your property was located elsewhere. And unfortunately, some types of coverage may not be available to you at all.
We always get asked this question. And we get it. You want to know how much you should expect to pay so you know if you’re paying too much– or too little. However, answering this question is really hard. So many factors go into someone’s home insurance policy. There truly is a big range in monthly premiums we see.
The average monthly premium we tend to see for an average house ranges from $75-$120/ month. BUT the only way to know how much your monthly premium will cost is to request a quote. We’ll be able to work with you to ensure you’re getting the best policy for your needs at the right price.
To try and reduce your home insurance premiums, you can:
Just be sure to let your Insurance Consultant know when you’ve made these updates!
You have questions– we’ve got answers!
Absolutely! In fact, in some cases, it’s required by the condo corporation. A condo is very similar to a house. You need to insure your property, the things inside it, and the liability for anyone attending your home is covered!
Home insurance is calculated by measuring the property against risks on the home.
Many factors will come into play to determine the appropriate premium. Some of these items (not an exhaustive list) include:
Yes! Fire protection is one of the basic coverages of home insurance. If you hold a mortgage in Manitoba, you are legally required to have fire insurance coverage on your property.
In Manitoba, home insurance rates are primarily based on three things:
Lower-risk locations and better insurance history tend to positively affect your rates, and having a positive credit score helps, too. It can give you a preferred rate depending on its strength!
Oftentimes your needs and your budget will dictate the policy you purchase. We recommend you speak with an Insurance Consultant who can help you determine what’s best for your unique needs and situation.
Contact your Insurance Consultant about a month before you need to acquire or update your home insurance policy and ask them to look at other companies. That way, they’ll know to compare coverages and prices on your behalf, and they’ll come back to you with your best options. But remember: Just because it’s cheaper somewhere else doesn’t mean it’s better!
Once you have your home insurance policy, it’s best practice to review it every year. And if, while you do, you have any questions, just call your Insurance Consultant for guidance and answers.
When insuring your home, it’s important you get enough insurance to cover you in case anything were to go wrong. However, you also want to ensure you’re not overinsuring yourself and paying more than you need.
The best way to get the right amount of coverage is to speak to one of our Insurance Consultants. They’ll be able to help you get the right policy at a great price.
Plus, we make buying and updating home insurance easier than ever by giving you a quick online commitment-free quote! Click the button below, complete a brief form, and we’ll send you the info you need to get started.