Home insurance isn't required by law in PEI, but it is always recommended that homeowners get coverage. A good home insurance policy means that in the event of damage or loss you won't have to worry about unexpected expenses. Homeowners do however need home insurance to secure a mortgage, a bank will not lend you money without insurance. Home insurance PEI is extremely important to keep you, your belongings and your property protected.

There are many different types of home insurance policies in PEI that an insurance advisor can help you select which one suits your needs best. They range from full coverage to more economical packages — there is one to meet the specific needs of all PEI homeowners!

Here are the different categories:

Comprehensive or All Perils: This is the most thorough of coverages (and most expensive) that you can get for a building and its contents. It obviously doesn't include optional coverage or predicted events. Most insurance policies include personal liability coverage.

Basic or Named Perils: This is a more economical coverage option that only covers what is specified in the policy.

Broad: This is seen as the middle ground coverage between comprehensive and basic. It only covers the building and names contents or perils.

No Frills: This is an option for homes that don't meet the usual standards for most insurance companies. It is usually for a property that requires a lot of upgrades/repairs or has major physical problems.

And, of course, if you feel you need more coverage, you can always inquire about add-ons or endorsements. These are extra coverages you can add to your existing policy. They usually cover damage caused by perils that are not included in a standard policy.

For example, if you are in an area with certain risks such as earthquakes, floods or sewer backups, you may want to consider them. Residents who live in low-lying areas may want to get extra coverage for water damage, the cost is more on your premium, and all depends on your location and quality of your home's structure. The extra coverage will cost more but could save you thousands down the road in damages and repairs.

Here are some things that are taken into consideration when calculating your home insurance premium in PEI:

• The square footage of your home
• Contents and quality of construction of your home
• The location of your home
• Distance to a fire hydrant
• Your claims history
• The age of your roof
• Plumbing
• Your home’s electrical system

Everyone wants a chance to obtain affordable home insurance in PEI! Here is a list of suggestions that you can do to try and save on your premium:

• Bundle and save! Most insurance companies offer discounts to those clients who have more than one insurance policy with them.
• Always compare insurance companies and shop around before you get insurance online or over the phone
• Increase your deductible, if you can afford to, this will help lower your cost
• Pay your premium annually instead of monthly
• Inquire about alumni or membership discounts that might apply
• Be safe and install a security alarm system and smoke detector
• Upgrade your electrical, heating and plumbing systems
• Do what you can to protect your home from severe weather and water damage
• Quit smoking (less of a fire risk)
• You can insure your home for the cost to rebuild it, but don’t over-insure it.