Get Cheap Home Insurance in Victoria

How home insurance works in Victoria

The way home insurance in Victoria works is relatively simple. The homeowner pays an annual premium to the insurer (typically split into 12 monthly payments), and the insurance company provides financial protection when the owner needs to make a claim.

The protection provided by Victoria home insurance is twofold. Firstly, it helps cover the cost of repairs to the home if the damage is caused by an insured peril and will help pay for repairs (or replacements) if the homeowner’s possessions are damaged, lost or stolen.

Secondly, it protects the Victoria homeowner from costs associated with legal action if someone is physically hurt on the property.

Most home insurance policies have four elements of coverage:

• Property: Protects the home and buildings on the property such as a garage.
• Contents: Protects the contents of the home, including electronics, clothing and personal items. For coverage of especially valuable items such as jewelry a rider can be added to the policy for greater protection.
• Liability: Offers financial protection if someone is injured at the home. Also extends protection to the policyholder if they unintentionally damage someone else’s property.
• Additional living expenses: Covers costs associated with being away from the home while it’s being repaired following a covered peril. Compensates the homeowner for expenses such as lodging and groceries.

Homeowners can choose from one of three insurance package types. Insurance providers may market each differently, but they’re generally described as outlined here:
 

• Basic: Protects the home against perils named in the policy such as fire and wind. This package offers the least amount of coverage available and as a result tends to be the least expensive. It is sometimes called a ‘named perils’ policy.
• Broad: Protects the home against all perils as well as protection for some contents. May sometimes be called a ‘standard’ policy.
• Comprehensive: The greatest amount of coverage available, protecting the home against all perils to the home and its contents. It is often referred to as an ‘all perils’ policy.

Optional coverage

Since not every peril is covered by basic, broad and comprehensive policies, homeowners can add coverage for greater protection. This optional coverage is also referred to as add-ons, endorsements or riders.

• At home business: For those who run a business from the home – whether sales or service-based – an added endorsement can help protect equipment and cover income that’s lost due to a covered peril. We recommend that any homeowner with a home-based business disclose it to their home insurance provider to avoid having a claim denied.
• Earthquake: An endorsement for protection against earthquakes is an especially good idea for homeowners in Victoria which is in a region that has previously been affected by earthquakes. This add-on also includes protection against landslides which are also common in mountainous regions such as those throughout British Columbia.
• Flood protection: Almost all home insurance policies exclude flood protection. Coverage for damage from overland flooding, tidal flooding and sewer back-up requires that homeowners add one or more endorsements to their policy. Some insurance providers offer water protection packages which include protection against each type of flooding. As extreme weather becomes more common throughout Canada and sea levels continue to rise, we strongly encourage homeowners in Victoria to add flood protection to their home insurance policies.
• Identity theft: Covers the cost of replacing personal documents if the homeowner’s identity is stolen.
• Locksmith: Covers the cost of replacing locks following a break-in.
• Mass evacuation: Covers costs associated with leaving the home due to a government-ordered evacuation. Homeowners will be compensated for expenses such as lodging and groceries while away from home.

Though home insurance isn’t required by law anywhere in Canada, it is recommended that homeowners in Victoria purchase it and add at least flood protection and earthquake coverage to their policies.

The region’s terrain means that homes there are vulnerable to flooding as well as earthquakes and landslides. Without coverage, homeowners risk losing their homes and their contents.