What property or homeowner insurance should you carry?

Homeowner insurance or renter's liability? Let's say you rent an apartment, in case of disaster, your landlord or is insurance company could sew you if they think that you are responsible for the disaster.

That is why you will need liability insurance to cover that risk. If ever you are sewed, your insurance company will do the necessary to take your defense, they will foot the lawyer bill that can be hefty, beside paying for any damage that you may have been recognized responsible for.

Being covered for liability is a must, especially if you have some belongings. Do not forget to buy insurance to also cover your belongings.

If you are a homeowner , the same applies and you will have to get full coverage homeowner insurance policy on top of liability. Your mortgage contract will require it. Some Homeowner insurance policies carry the 80%-20% co-insurance clause.

What does that means?

It means that as a homeowner, you have to insure your house for at least 80% of its replacement value, otherwise, you become co-insurer for the difference.

If you add to your property, do not forget to report the amount spent to your broker, he will increase the amount of coverage.

Let's say that you build a garage on your property, if you do not advise your Insurance company and have a fire, you will not be covered by Insurance.

Do not forget to report renovation. Renovation increases the value of your dwelling, remember the 80%-20% co-insurance clause.

Same goes for liability. Someone gets hurt in your garage, chances are that you will not be covered if you did not report that garage to your insurer.

A good practice is to make a list of your belongings and even a video showing your home and every thing that is in it. Give that to your insurer, he will evaluate your belongings and insure you for their value.