Get Cheap Home Insurance in Kamloops

How home insurance works in Kamloops

Home purchase is likely to be the biggest investment you’ll ever make, though not as big as it would’ve been during the height of the pandemic as at the tail end of 2022, house prices in Kamloops went from the average of $820,990 to $631,660 – a 23.5% drop.

If you’re one of the people looking to take advantage of this market cooldown, don’t forget to account for home insurance, as most lenders won’t mortgage a home unless it’s insured (even though home insurance is not legally required in British Columbia). Even if you don’t require insurance to own your home, we still recommend that you get it, as it is the best way to protect yourself.

With that in mind, let’s look at what most insurance policies cover:

• Property: This covers damage or loss of your home as well as other buildings on your property (e.g. garage).
• Contents: This covers all the possessions on your property, including your vehicle. Do note that expensive items such as jewelry may need additional coverage.

Note: We recommend that you catalogue all your belongings, along with information such as the cost of replacement, receipts (for major items only), serial numbers and photos. This will make filing a claim much easier down the road.

Home insurance policies also include:

• Liability: This protects you from a potential lawsuit due to an injury suffered by someone visiting your property or due to the damage you may inflict on the property of others.
• Additional living expenses: This protects you in case you need to be away from your home while it’s being repaired from covered damage. Often includes expenses like lodging and food.

Home insurance policy differences

Home insurance policies come with different levels of coverage against various perils. Note that different companies have different policies, so be sure to shop around before committing to any policy. Consider using InsuranceHotline.com for that.

• Standard: Also known as ‘basic’ or ‘named perils,’ this coverage protects you only against the perils listed in your policy. For instance, if the policy lists fire, but not flooding or other perils, then you will be covered for fire only.
• Broad: Unlike the basic policy, this one protects your home from all perils, aside from the ones listed as exclusions. For instance, if flooding is listed, then you won’t be covered for it. But you will be covered for the rest, such as fire, theft and so on. As for your possessions, it only covers named perils, similarly to the basic policy.
• Comprehensive: Like the name suggests, this one protects both your property and possessions from all perils, aside from the ones listed as exclusions.
• No-frills: Applies only to homes that don’t meet typical standards for home insurance. For instance, a home may have physical problems that are highly likely to cause damage down the road. No-frills coverage is even more basic than standard, so be sure to consult with your insurer to know what’s covered.

Commonly covered perils

Insurers don’t offer coverage for every single event that can damage or destroy your home. These include:

• Fire and smoke
• Explosion
• Lightning
• Theft and vandalism
• Aircraft or vehicle impact
• Water damage (excludes flooding)
• Wind
• Falling objects (excludes objects moved by snowslide, mudslide or earthquake)
• Window breakage

Optional coverage

Since there is no policy on earth that covers every peril, many homeowners go for optional protections, also known as ‘riders,’ ‘floaters’ or ‘add-ons.’ Here are some of the major perils not covered by a basic policy, but can still be purchased additionally:

• Flood: This covers damage by bodies of water overflowing onto dry land, such as rivers. Also referred to as overland water. If you live in an area where flooding is common – and there are many such areas in Kamloops – you may not get this coverage. But be sure to ask your insurer about it, just in case.
• Sewer back-up: Covers flooding and water damage that happens due to backed up sewage pipes, toilets, drains and showers.
• Earthquake: This includes damage inflicted by earthquakes. They are rarely covered by standard insurance, though if an earthquake causes fire on your property, you may be covered for that. Given that Kamloops is in British Columbia, the most earthquake-prone province in Canada, we recommend getting this coverage.
• Windstorm: If a windstorm damages the structure of your home, breaks your windows, ruins your possessions or covers your property in debris, this will cover you. Note that water damage due to rain or hail may not be included.
• Valuable items: If you possess expensive items like jewelry and collectibles, this will cover you. However, you do need to give your insurer current appraisals for the items, or you won’t get the right coverage.

How much does average home insurance cost in Kamloops?

The average annual insurance cost in British Columbia and, by extension, Kamloops can be as high as $1,700, according to insurance providers like Surex and InsureBC. Some of the reasons for this include:

Natural disasters

Catastrophic events in British Columbia throughout 2021 and 2022, including a flood that reportedly cost more than $450 million, destructive wildfires and a record fall draught.

More damage to homes means more files being claimed by homeowners, which results in higher premiums for everyone. With enough evidence to suggest that these disasters are connected to climate change, it’s safe to suggest that they are here to stay, meaning that the rates won’t change either (unless other factors affect them).

Renovations

The pandemic motivated a lot of people stuck in their homes to renovate. In fact, according to a study by BC Hydro, half of British Columbians have completed a renovation since the beginning of the pandemic. The biggest reasons included aesthetics (35%), comfort increase (29%), energy efficiency increase (10%) and extra time (10%). This has in turn led to renovation regret – at least for 20% of British Columbia homeowners.

Top home insurance companies in Kamloops