Buying your first home is one of the biggest purchases of your life, but with some research, getting onto the property ladder may not be so daunting.
When purchasing your first home, it’s important to understand the importance of homeowners’ insurance in Canada. While not legally required, mortgage lenders may ask for proof of insurance to help protect their investments.
Homeowners’ insurance in Canada provides coverage for your property and personal belongings against risks such as fire, theft and vandalism. Policies can be tailored to your specific needs, whether you are purchasing a house or a condo. Aviva Canada offers a variety of customizable options, including add-on coverages like Overland Water Protection.
Deciding to buy homeowners’ insurance in Canada can ensure peace of mind and financial protection for your valuable purchase.
Things to consider when buying your first home
Many of us feel pressure to take the plunge into homeownership, but is it the right choice for you? Here are some questions you should ask yourself:
- Why am I deciding to purchase a home?
- Am I financially ready to take on the costs of owning and maintaining a home?
- Can I qualify for a mortgage?
- Do I plan to stay at this location for a while?
- Am I ready for responsibilities of homeownership, like maintenance and repairs?
Choosing your home insurance policy
Home insurance isn’t a legal requirement in Canada, but most mortgage providers will require you to show proof of insurance before they lend you money. Having insurance will help protect your property and possessions in the event of a fire, theft or vandalism (and other covered events).
Aviva Canada offers different types of home insurance depending on your property and living situation:
House insurance is for homeowners and covers the building, including any sheds you might have in the backyard or front yard. It covers the entire structure of your home and all of your belongings (contents) subject to the limitations of your policy.
Condo insurance is for people who own a condo townhome or apartment and covers the contents in your unit and renovations such as new flooring or cabinetry. Your condo policy may cover some of the common area as well.
Home insurance is customizable. Once you’ve got the basics covered, contact your insurance representative for any additional add-ons from Aviva like Overland Water Protection for loss or damage related to water entering your property from the overflow of lakes and rivers. You can also consider purchasing Aviva’s Disappearing Deductible coverage to your policy so your deductible is reduced every year you don’t make a claim.
