The Benefits of Home Insurance in Etobicoke
Etobicoke neighbourhoods vary in home values and exposures to risks. The Kingsway, Stonegate-Queensway and Etobicoke South have the highest home prices in this area of Toronto. Crime rates and the likelihood of flooding are only two factors that can affect rates for home insurance in Etobicoke.
A HUB International broker can help homeowners in Etobicoke compare policies to insure residences against everyday perils and occasional disasters. Local property damage risks, such as basement flooding from heavy rains and sewer backups, could call for add-on coverage.
Ontario Home Insurance Coverage
Residents of Etobicoke can choose from several levels of home insurance policies. Policy premiums vary based on the extent of coverage and the value of a home, but the average costs of covering Ontario homes range from $170 to $500 a month or $2,000 up to $6,000 a year. Learn more about the four main types of Canadian home insurance:
1. No-Frills Insurance
The lowest level of home insurance policies only covers named perils. No-frills policies offer options for homes that do not qualify for higher levels of coverage, but may not satisfy mortgage lender requirements.
2. Standard Coverage
Basic home insurance policies only cover named perils. These policies may offer options to add liability coverage or raise personal property limits.
3. Broad-Form insurance
Broad-form home insurance covers all perils to the structure of a dwelling with the exception of exclusions. Broad policies may only cover named risks to contents.
4. All-Perils Coverage
Comprehensive home insurance provides the most extensive coverage for homes in the Greater Toronto Area. Additional options can fill gaps in coverage from policy exclusions.
Additional Options for Insuring Homes in Etobicoke
Policy types determine the base level of coverage from home insurance. Homeowners may need to add coverage for perils that a policy does not name or specifically excludes. Learn more about some of the most common options for home insurance in Etobicoke:
- Higher Liability Limit: Raising liability limits can give policyholders more protection from legal liability and financial penalties for injuries or damage to property. Umbrella policies can provide even more protection beyond the liability limits of home and car insurance.
- Guaranteed Replacement Cost: An option for claims to pay out replacement costs without subtracting depreciation enhances overall levels of coverage. Actual cash value policies may not cover the full cost of repairing or rebuilding a home or replacing contents.
- Coverage for Valuables: High-dollar property, such as fine art, jewelry or electronics, can account for large portions of policy limits for contents. Endorsements provide additional coverage that accounts for the value of these possessions.
- Overland Water Coverage: Home insurance policies almost always exclude flood damage. Flooding can pose a risk to homes in the Greater Toronto Area.
- Sewer Backup: Recent basement flooding in a considerable number of Etobicoke homes led to damage assessments ranging from $80,000 up to $150,000. Sewer backup coverage can cover costs that most home insurance policies exclude.
The location of a home in Etobicoke factors into the risk of flooding. The City of Toronto offers subsidies to homeowners of up to $3,400 per property for installing approved flood prevention devices. Backwater valves, sump pumps, storm sewer improvements and external weeping tiles can reduce the risk of basement flooding and may lower the cost of sewer backup coverage.