INSURANCE

Coverage to consider when purchasing your new home.

1. MORTGAGE LIFE INSURANCE
In the event of the death of the owner (owners) of a home, the balance owing on the mortgage is covered by mortgage life insurance, a form of term life insurance. Particularly for families with young children who could not run the risk of losing their home if the breadwinner should unexpectedly die, mortgage life insurance is highly reccomended. It is the safest way to protect the survivors from losing their home because they cannon make the mortgage payments.

2. FIRE INSURANCE
No one plans on or expects a fire to happen to them. But it is possible and fire insurance on any dwelling is an absolute necessity. If you have a morgage on your home, the fire insurance policy you take out should be equal to the full replacement value of the building. As housing costs rise so should the amount of your policy. Also, your policy should be large enough to help you recover your investment in the building. Policies are generally renewable each year. If you are building or having a home built, you should also consider having insurance to cover the building period as an added security.

3. THIRD PARTY INSURANCE
Civil liability or third party insurance is highly recommended to cover your personal liability in the event that a visitor to your property sustains an injury. It protects you in the event the visitor sures you for damages. Package policies are available to homeowners to provide them with a full benefit package. Fire and third party insurance can also be included in a package protecting you against theft, loss or destruction of contents as well as property damage caused by mother nature.

4. PERSONAL PROPERTY
Coverage for your household contents and personal belongings is usually expressed in your policy as a percentage of the insured value of the dwelling. Insurance for these items is now offered by most companies on a full replacement cost basis. Therefore, care should be taken to ensure there is sufficient insurance to cover the cost of replacing these items with new ones.

5. ADDITIONAL CONSIDERATIONS
Most policies contain limits of coverage for certain categories of property such as jewellery, furs, silverware, etc. These limits can usually be increased by seperate riders to your policy and should be discussed with your agent. In addition, cabins, boats, and rental property area all examples of itmes which can be insured through your homeowners policy. Each individual's insurance needs are unique. A professional insurance agane will take the time to listen to your uestions and explain your policy to you. Significant discounts are extended to home owners who use alarm systems which detect intrusion and/or fire.

6. TITLE INSURANCE: SAMES YOU MONEY AND HASSLE
What can go wrong with the title to your dream home? Unthinkable things that even the most careful lawyer can't be held accountable for. Fraud, forgery, survey errors, registry office errors and omissions, zoning by-law infractions and other title defects can delay your closing, stop the deal or even worse, surface years later. Title Insurance protects your investment and saves you money too. It streamlines the search process helping reduce lawyer fees, is accepted by most lenders in place of a costly up-to-date survey and can eliminate delays that threaten closing day. A very affordable, one-time premium, protects you and your heirs against loss, damages and legal costs. To sum up, closing costs are lower, protection is higher and most importantly you can move in with complete peace of mind! Canadians have been doing so since 1991. Ask your realtor or lawyer all about it.