top of page

Do You Need Home Insurance and When Should You Buy It? A Guide

Image of a paper cut family of four, with a hand holding a paper, cut red house with a heart in the middle.

Home insurance will help cover costs when disaster strikes your home. 

Please keep reading to learn more about home insurance and why you need it.

What does Home Insurance Cover?

Home insurance policies are customizable; however, most plans cover damage to the interior or exterior of the home. You can have endorsements added to your property policy that will enhance the base package to include perils that are normally excluded from a standard home insurance policy.

Different Levels of Home Insurance in Calgary

Home insurance plans are often personalized to the homeowner, although there are always three levels of coverage. 

Actual Cash Value  

The actual cash value of your house covers to the limit set by you, the insured. Meaning, if the limit you set is lower than the actual cost to rebuild the home, any extra costs will be bore by the insured. Content coverage, with this type of policy, is also set by the insured and will only be paid up to that limit.

Replacement Cost 

Replacement cost plans cover the value of your home and possessions without deducting depreciation. This would allow you to replace and repair your home and restore it to its previous value. It is vital that the information provided by the insured is a direct representation of the risk.

Guaranteed Replacement Cost 

Guaranteed replacement cost plans are designed to cover inflation. In these plans, inflation protection is applied upon renewal each year to cover the increased costs for supplies to rebuild your home. With the additional coverages based on a percentage of the dwelling limit, as that coverage increases to cover inflation, so do the subsidiary coverages like content coverage.

What is not covered by standard Home insurance? 

There are particular things that standard home insurance will not cover, for example: 

  • Overland Water

  • Sewage Backup 

  • Home Equipment Breakdown

  • Service Lines

  • Identity Theft

  • Landslides

  • Earthquakes

These are some events usually outside of standard home insurance. However, you always have the option to purchase optional add-ons to protect your home from risks not covered by your policy. 

How Are Rates Determined? 

Insurance companies determine your rate based on your home's perceived risk. By considering various factors, home insurance companies can predict your claim frequency and severity before locking you into a rate. 

To make an educated assessment, the insurance company will factor in the following: 

  • Your history of past claims 

  • Whether you live in a neighbourhood or not

  • The crime rate in the area

  • Current access to building materials

  • The condition of your home 

  • Your desired amount of coverage

  • Historical weather conditions that affect where you live

Insurance professionals can build a receptive plan that works for you by considering these factors. At John Bean Insurance, we will work with you to get you the best rate possible. 

Tips to Get Affordable Insurance 

A variety of factors go into determining the cost of your home insurance. However, as a homeowner, you can implement tools to get more affordable insurance. 

By maintaining a security system and smoke alarm that is tied directly to the local police and fire station, you can lower your annual premiums. You must provide evidence that these systems are fully operational. Changing the exterior wrap on your house, including the roof, to a hail-resistant product and considering a higher deductible for certain events as another way to lower your premiums.

The best Home Insurance for your needs

Home insurance can help you financially recover from a disaster. Be a responsible homeowner, and get in touch with us at John Bean Insurance today! 






bottom of page