What is Home Insurance and Why you need it? 

Your home is one of the most important asset that is vulnerable to to natural disaster, burgalry and other risks. Most of the lenders and financial institutions prior to advancing the funds on closing, require the homebuyer to have a home insurance. Home insurance generally consists of coverage for the building structure of your property for property damage from fire, wind, hail, theft or other similar damage, though it may include more or fewer terms depending on the requirements of your lender.

Once Agreement of Purchase and Sale is final, your mortgage approved, you must contact an insurance company for home insurance. Your lawyer will require a home insurance policy or a home insurance binder to be forwarded to your lending financial institution. If you are buying a condominium, the condominium corporation maintains a building insurance which is forwarded to the lender. The Certificate of Insurance is provided to the buyer with the status certificate package.

It is important to note that the home insurance of the property only covers the building structure and does not cover the personal contents in your home. It is advisable to maintain a content insurance. The insurance maintained by the Condominium Corporation will not provide the personal content insurance.

Consult your insurance broker for the best advice.