“,”heading”:””,”fullWindow”:false,”fullBleed”:false,”showFullBleedOnMobile”:false,”headColor”:””,”type”:”html5mobile”,”textColor”:””,”mobileImageUrl”:””,”bgColor”:””,”imageUrl”:””,”registeredOnly”:false,”linkUrl”:””,”aodaTitle”:”embed”,”internalScroll”:false,”displayStyle”:”small-up”},{“type”:”textBreakPoint”,”insertAt”:”contentMiddleBreakPoint”},{“text”:”Around a third of Canadians mistakenly assumed their home insurance policy covered flood damage, according to a 2022 Leger survey conducted on behalf of RATESDOTCA and BNN Bloomberg. “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“text”:”“As a reminder, you don’t have to live by a lake or a river to be impacted by an overland flood — floods can also happen when the storm sewer system gets overwhelmed,” says Rob de Pruis, National Director, Consumer & Industry Relations at the Insurance Bureau of Canada. “This is where it’s important to make sure you understand and know the risks.” “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“text”:”You can also opt for guaranteed replacement cost coverage, an endorsement that allows you to rebuild the property even if the damage to your home exceeds your policy limit — especially handy to have in your policy during periods of red-hot inflation.”,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“type”:”ad”,”heading”:”ARTICLE CONTINUES BELOW”,”name”:”ArticleSecondBigBox”,”display”:”medium-down”,”pos”:”2″,”interstitial”:true,”sizes”:[[300,250]]},{“text”:”Homeowners should also keep their insurance provider updated on any renovations that may impact their home’s replacement cost. For instance, upgrading your countertops from laminate to granite won’t have a big impact on your home replacement value. “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“type”:”articleRelatedInlinePrimary”},{“type”:”ad”,”className”:”fresh-eight-ad”,”name”:”Fresh1″,”display”:”medium-up”,”pos”:”2″,”sizes”:[[728,90],[728,270]]},{“text”:”“A lot of these costs don’t make a huge difference in your premium,” she explains. “And even if it does make a difference, you’re going to want to ensure that’s covered in the event of a loss.” “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“text”:”However, additions like finishing your basement or adding a garage can substantially impact the valuation of your home’s replacement cost. “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“text”:”In case of major damage, like a flood, De Pruis explains the importance of homeowners choosing qualified and reputable contractors or using a preferred contractor with that your insurance company has an established relationship.”,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“type”:”textBreakPoint”,”insertAt”:”contentEndBreakPoint”},{“text”:”That way, he says, you’ll know you are in good hands and that the work is done according to building codes, and complies with the necessary permits and local bylaws. “,”type”:”text”,”isParagraph”:true,”isHeading”:false},{“type”:”slimcut”},{“type”:”cta”,”buttonText”:”Sign Up Now”,”buttonLink”:”/emails.html?nsrc=article-inline-business”,”description”:”Read the business news and analysis that matters most every morning, including the latest on what the coronavirus means for you, in our Star Business email newsletter.”,”title”:”Get more business in your inbox”},{“text”:”Srivindhya Kolluru is a Toronto-based freelance journalist who writes about business and finance. “,”author”:{“author”:”Srivindhya Kolluru”,”credit”:”Special to The Star”,”photo”:{}},”authorPageUrl”:null,”type”:”endnote”,”isLast”:true},{“type”:”relatedStories”,”relatedStories”:[{“url”:”https://insurance.einnews.com/business/personal_finance/2022/07/18/home-insurance-isnt-immune-to-inflation-heres-how-experts-say-you-can-lower-those-costs.html”,”assetId”:”dc565965-4ef2-49ad-98d7-dfe8479741e4″,”headline”:”Home insurance isn’t immune to inflation. 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home insurance company may be checking your credit score — are you okay with that if it saves you money?”,”abstract”:”Allowing a ‘soft’ credit check gives requesters less information, won’t affect your credit score and can save you money on your policy”,”image”:{“origImageSize”:”1200×800″,”cropthumb”:”0,0,1200,800″,”lastmodified”:1643210798381,”alt”:”Karlee Roth, a nurse living in Tavistock, Ont., had never heard of a ‘soft’ credit check which doesn’t effect her credit rating. 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Your home insurance company may be checking your credit score — are you okay with that if it saves you money?
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If you live in an area susceptible to flooding or other natural disasters, experts say, you should double-check that your insurance policy covers your home’s full replacement cost
If you live in an area that’s susceptible to flooding or other natural disasters, it’s a smart idea to double-check that your home insurance policy covers your home’s full replacement cost.
Morgan Roberts, director of RH Insurance in Ontario, explains the replacement value of your home refers to how much it would cost to rebuild your home from the ground up in the event of a total loss.
This means that if your home is destroyed in a major event, like a flood or earthquake, your insurance policy will cover the cost of rebuilding your home up to that replacement cost limit.
When shopping for home insurance, you can add extra coverage — or endorsements — to your policy, like flood coverage.
Around a third of Canadians mistakenly assumed their home insurance policy covered flood damage, according to a 2022 Leger survey conducted on behalf of RATESDOTCA and BNN Bloomberg.
“As a reminder, you don’t have to live by a lake or a river to be impacted by an overland flood — floods can also happen when the storm sewer system gets overwhelmed,” says Rob de Pruis, National Director, Consumer & Industry Relations at the Insurance Bureau of Canada. “This is where it’s important to make sure you understand and know the risks.”
You can also opt for guaranteed replacement cost coverage, an endorsement that allows you to rebuild the property even if the damage to your home exceeds your policy limit — especially handy to have in your policy during periods of red-hot inflation.
Homeowners should also keep their insurance provider updated on any renovations that may impact their home’s replacement cost. For instance, upgrading your countertops from laminate to granite won’t have a big impact on your home replacement value.
“A lot of these costs don’t make a huge difference in your premium,” she explains. “And even if it does make a difference, you’re going to want to ensure that’s covered in the event of a loss.”
However, additions like finishing your basement or adding a garage can substantially impact the valuation of your home’s replacement cost.
In case of major damage, like a flood, De Pruis explains the importance of homeowners choosing qualified and reputable contractors or using a preferred contractor with that your insurance company has an established relationship.
That way, he says, you’ll know you are in good hands and that the work is done according to building codes, and complies with the necessary permits and local bylaws.
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