Insurance-What should be important Coverage and advice or  Cost only?

For most Canadians, their primary home is the largest asset. Property insurance policies are very complicated and even getting more complicated. Water damage and its related terms for a layman includes Sewer backup, flood, surface water, seepage etc. From the layman point of view, they look similar but insurance policies are “Insurance Contracts” with coverage and its limitations, deductibles, exclusions, policy conditions  and so on. More interestingly, lot of customers won’t even look beyond monthly payment. I strongly recommend the following:
1.   Do not buy coverage online or from any of the direct writers if you feel advice matters to you.
2.  Look for an independent broker as a lot of brokers are owned and or controlled by insurance companies.
3.  You should look for best coverage not only from face but underlying limits, Coverage against Sewer Back up, water damage, Seepage (Some companies offer limited coverage now) and very minimal exclusions if possible.
4.   You should ask your broker best coverage and comparative price. Of course best coverage may be slightly expensive or it may be just a  choice of insurance company that only an independent broker can offer.
5.   Spend some time with you broker to understand what you are covered for. If you don’t get the clear answers start thinking to change the broker not for price but knowledge reasons.

$2 million in water damage not covered by insurance

Imagine turning to your insurance company after catastrophic damages to your house and being told, “You’re not covered.”
That’s what happened to Hassan Hojjatian and Mitra Kermani in June 2011, when their house suffered extensive water damage to the basement, basement bathroom, garage roof and foundation.
An independent expert later assessed the loss to the Toronto house at more than $2 million.

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