Will my Home Insurance cover Storm Damage?

According to the J.D. Power 2014 Canadian Home Insurance Study, from March through April 2014 there were more Home Insurance claims filed for storm damage than for any other peril (41%). While this isn’t too surprising what is, is that customer satisfaction has also increased. Why? We think that it is probably because more people are actually getting to see how it is that their insurance dollars are working for them.

We know that the claims process isn’t always pleasant, and one of the hardest things for us to do is tell someone that the damage done to their home due to a storm (or otherwise) is not covered under their Home Insurance policy. Which is why it didn’t surprise us to see that 24% of respondents to the J.D. Power Study did not know what coverages were included with their policy.

To help you out, we here at Alpine Insurance and Financial Services thought that we would briefly describe for you the 4 most common types of Home Insurance policies:

Comprehensive

This type of policy will provide you with the most inclusive coverage, and will cover both your building and belongings, unless otherwise specified (excluded). Please note you can purchase supplemental insurance or optional coverages, but there will also be certain uninsurable perils.

Broad

A step below the comprehensive plan, this coverage will protect your building and the possessions that have been named specifically in your policy.

Named Peril

This is the money saving policy, but it also one of the riskier options. When purchasing this insurance, you agree to carry the risk for of potential loss for certain perils unless specifically stated in your policy.

No Frills

A ‘No Frills’ policy is only for those buildings that do not meet the requirements for normal coverage. You can save money in the long run by opting to update your property to qualify for a standard policy.

To summarize, if you have comprehensive Home Insurance, then you are more likely to have coverage when a storm hits. Saving money now can effect your financial risk later.

Photo – © okalinichenko – Fotolia.com