5 Home Insurance Myths

Part of the Sutherland Insurance guide to Home Insurance in Ontario.

Home insurance is an essential part of protecting your investment, yet some homeowners can have misunderstandings about what it covers and how it can work. At times, this can lead to inadequate coverage or costly mistakes. Below are five home insurance myths debunked, and what an Ontario policy actually says in each case.

Myth 1: That personal belongings have no coverage limits

While personal belongings are covered for an insurable loss, there are limitations on certain items such as jewellery, art work & bikes. High-value items are commonly scheduled individually on the policy, and the sub-limit that applies without scheduling is set out in the wording.

Myth 2: Home insurance covers the market value of your home

Home insurance is designed to cover the cost to rebuild your home, not its market value. Insurance focuses on the cost of materials and labour to reconstruct your home.

Myth 3: Home office equipment is covered

Some policies have limited coverage for business property. If you run a home-based business, you may need additional business insurance to cover your equipment and liability. It's important to talk to your insurance broker for more information.

Myth 4: Tenants don't need insurance when renting in a home

Renters need insurance too as a landlord's policy covers the building structure, but not the tenant's personal belongings or personal liability. Tenant insurance policies are very affordable, and protect both the homeowner and renters.

Myth 5: Your policy automatically updates to reflect home improvements

Your home insurance policy doesn't necessarily automatically adjust when you make improvements. Informing your insurer about significant upgrades to ensure your coverage limits reflect any increase of value to your home. Contact your broker before any major renovations or additions.

Misunderstandings about coverage can lead to possible financial losses. By being aware of these common myths, you can make more informed decisions about your insurance policy and avoid potential costly mistakes. Always review your policy details, communicate with your insurer about any changes or upgrades to your home, and consider additional coverage where necessary. At Sutherland Insurance, we're here to help you navigate the complexities of home insurance and provide the protection you select. Contact us today to review your policy or get a personalized quote.