Shopping for insurance can sometimes be painstaking and tedious. We know. Not only because home insurers all offer different insurance contracts, but also because insurance premiums can vary from one insurer to another. What should you take, with whom? This is what Assurances Multi-Risques will explain in this article. We will compare two types of insurance coverage that are offered by most home insurers and provide you with the best advice to ensure that you are well insured.
“Designated risk” insurance
As the name implies, “designated risk” insurance covers only the risk(s) listed on your home insurance policy. This means that anything that is not mentioned in your contract will be automatically excluded. Because of its more limited coverage, this insurance is generally called “basic.”
“All risk” insurance
Unlike “designated risk” insurance, “all risk” insurance covers almost everything, except for a few general exclusions. Unfortunately, some risks are always excluded from basic contracts regardless of the coverage chosen. “All risk” insurance, also called “extended coverage,” is frequently offered and recommended by home insurers because it provides expanded coverage for your home and belongings. The good thing about this type of insurance is that it covers you for more accidents, including those that are difficult to predict. But watch out! Assurances Multi-Risques urges you to be careful when you insure yourself with a home insurer. Use caution, because some home insurers will only provide “all risk” insurance for your house and will insure you on a “designated risk” basis for its contents.
Examples of risks that are covered by an “all risk” insurance policy:
- A skunk gets into your house and infests your residence
- A bear eats your vinyl siding
- Your luggage disappears
- You lose your hearing aids
- There is a suicide at your residence or in your rented building
- The weight of ice, snow and glaze
Some insurers don’t include these risks in the “designated risk” policy. Ask your insurer if you are covered for these types of events.
Which insurance policy is best for you?
We believe that “all risk” insurance remains the best option for home insurance. By choosing this option, you extend your insurance coverage and at the same time invest in your estate. However, since we know that everyone’s needs are different, we strongly recommend that you contact an independent insurance broker. This will ensure that you get the maximum amount of insurance advice to make an informed decision!