The top Canadian home insurance companies examine a number of factors when determining home insurance rates in Scarborough. Here are some of the main variables that are considered:

• Coverages. Home insurance has three primary coverage types: Comprehensive (or All Perils), Basic (or Named Perils), and Broad. Comprehensive offers the most robust coverage for your home, and is therefore the most costly coverage type. Beyond these three main coverage types, if you require extra protection (i.e. for high-value items or water damage), you may be required to purchase additional coverages, which would result in a higher premium. Speak with a Dedicated Insurance Assistant to get a professional and unbiased opinion about what coverage type is right for you.

• Replacement cost. Home insurance is based on the cost to replace your home in its current condition, not the market value of your home. Therefore if the unthinkable happens and you lose your home in a fire, you would be reimbursed at the ‘replacement cost value of your home. For example, if your home costs roughly $400,000 to completely rebuild — even if it’s worth $750,000 on the open market — you would receive a $400,000 payout from your insurance company in the event of a total loss. So when purchasing home insurance, you only need coverage for the lower replacement cost value, not the higher market value.

• Residence type. The top Canadian home insurance companies consider whether you have a condo, townhouse, detached home, semi-detached home, seasonal residence, or rental property.

• Home improvements. Renovations and home betterment projects will likely raise the replacement value of your home, and will thus raise your premiums. Be sure to report all home upgrades to your Dedicated Insurance Assistant.

• Personal claims history. Insurance rates are always influenced by your claims history. If you have a track record of making few or no claims, you will be viewed as a low-risk customer by your insurance company, and should expect to see lower rates as a result.

• Home safety. Centralized sprinklers systems, carbon monoxide detectors, fire alarms, deadbolts, and proximity to policy stations and fire hydrants could result in a discount to your premium.

• Value of belongings. Basic home insurance will protect your home and your belongings, but if you own high-value items, such as costly antiques or an expensive sound system, you may need to purchase additional coverage, which will raise your annual premium.

• Local crime. The crime rate in your neighbourhood could have an impact on your home insurance premium, as it may increase (or decrease) your chance of making a claim.  

• Deductible. The amount you’re responsible for paying in the event of a claim (i.e. your deductible) will have an impact on your rate. Generally, a higher deductible will lower your home insurance premium.

• Home construction factors. Variables such as type of electrical wiring, the condition of your roof, the quality and age of your plumbing, the heat source, and the age of your home are all considered by the top Canadian home insurance companies when calculating your premiums.

A basic homeowners insurance policy in Scarborough will cover your home and its contents against a range of damages and perils. Here are some of the threats you can expect to be protected against if you have an affordable home insurance policy:

• Weather-related damages are typically covered, including damages from thunderstorms, hail, severe wind, earthquakes, and hurricanes. However, water damage from flooding may require additional coverage, so speak with a Dedicated Insurance Assistant about what weather threats are covered, and what are not.

• Home break-ins, vandalism, and theft

• Explosion damage

• Impact from a plane, helicopter, or vehicle

• Fire and smoke damage

• Frozen pipe damage

• Detached structures on your property are covered, including guest houses, garages, and sheds. Be sure to disclose all structures prior to securing your home insurance policy.

• Coverage if someone is accidentally injured while on your property

• Coverage if you accidentally cause damage to another person’s property

• Coverage for the cost of temporary housing (i.e. apartment rental, hotel) for the duration of home repairs (or replacement)

Comparing online insurance quotes is the easiest and fastest way to find cheap home insurance. By visiting Surex.com, Scarborough homeowners can compare  insurance companies with a few clicks of a mouse. And the quotes they see are free and no-obligation, so it’s the perfect low-pressure environment to find the best policy for your individualized property needs. Once Scarborough homeowners find a competitive rate, they can speak on the phone with a Dedicated Insurance Assistant to learn about more ways to lower their home insurance premium, including bundling their policies, raising their deductibles, and paying annually instead of monthly. Comparing quotes online is the first step to finding the best and cheapest home insurance in Scarborough.