Cambridge home insurance

Cambridge Home Insurance 2021 Review and Prices

Cambridge home insurance policies offer protection for homeowners, the home, and personal possessions against unforeseen or unexpected circumstances or events.

As a homeowner, you need protection or coverage for the repair, rebuild, or replacement of your home and contents in the event of loss or damage as a result of an insurable peril. In addition to the protection of properties, home insurance in Cambridge equally provides liability coverage for the homeowner in any part of the world.

One of the most priced possessions is home. As a treasured possession and investor, a home holds fond memories for the homeowner, and hence, requires adequate coverage from damages and losses. Home insurance goes beyond the physical structure (dwelling). It involves the building, the personal belongings, as well as liability coverage. Therefore, home insurance can save you from a lot of stress and financial burden.

Home insurance in Cambridge and other Canadian cities is not a legal requirement. However, homeowners who owe mortgage are often required by mortgage lenders to obtain home insurance on their investments. Meanwhile, it is usually recommended for homeowners to get the proper home insurance on their homes and possessions.

The benefit of having home insurance coverage far outweighs the premiums paid to insurers. Home insurance ensures that you have peace of mind and enjoy protection on your home, family, and possessions. Regardless of the type, size, and value of your home, you can enjoy the lowest and most affordable home insurance rate available in Cambridge.

This page will provide you with a detailed guide, review, and information on how Cambridge home insurance works. Besides, several factors that determine premium rates will be outlined, as well as useful tips for choosing the best home insurance protection with the most affordable rates.

About Cambridge

Cambridge is a cosmopolitan Canadian city located in the regional municipality of Waterloo, in the southeastern part of the Ontario province. The city of Cambridge lies about 90km west of Toronto, the provincial capital. With a population of about 130 thousand residents (129,920 according to the 2016 census data), Cambridge ranks as the 40th largest municipality in Canada in terms of population.

The city of Cambridge is strategically located with major Canadian cities, and thus, attracts many visitors and tourists, especially with its numerous festivals and other attractions. Cambridge is well connected to bigger cities like Toronto, Kitchener, and other GTA cities through Highway 401, Highway 8, and Highway 24.

Living in Cambridge

Cambridge has many great neighborhoods and towns, including Galt, Preston, Silver Heights, and Hespeler. Just like the Greater Toronto Areas, the Waterloo region has, over the years, experienced several real estate developments. Many families now consider the city of Cambridge as a haven to live and raise a family. Hence, many people are looking at securing townhouses, detached houses, semi-detached houses, or Condos.

Cambridge has a total land area of 112 square kilometers. In terms of living expenses in the city, Cambridge residents have a slightly lower cost of living than in Toronto, except in some indices such as consumer and restaurant prices.

The cost of living in Cambridge, however, is about 8 percent higher than the national average. Therefore, Cambridge’s cost of living is higher than what is obtained in Kitchener and Waterloo. The average home price in Cambridge is put at $604,000.

About Cambridge Home Insurance

Homeowners insurance in Cambridge typically covers the building (structure), the contents, as well as the liability on the homeowner. We all know that nature can be unfriendly at some point in time, especially around the Greater Toronto Area and surrounding towns and cities.

Natural occurrences such as flooding and ice storm can have a negative impact on the home and personal belongings, which invariably will also have an impact on the finances of the home or property owner. As a homeowner in Cambridge, you need insurance coverage to repair, rebuild, or replace your home and personal belongings for any loss or damage caused by an unexpected risk.

Home insurance in Cambridge works as a contract and agreement between a homeowner (insured or policyholder) and a home insurance company (insurer). The homeowner pays a periodic premium (annually or monthly) to the insurance provider, while the insurer provides financial protection and coverage. Thus, in the event of any theft, loss, or damage of the home or possessions caused by an insured peril, the insurance provider will compensate or indemnify the homeowner as agreed in the purchased policy.

Likewise, home insurance in Cambridge protects the homeowner from the financial cost of liabilities in relation to bodily injury or property damage to another person.

Premiums or home insurance rates vary in hundreds and thousands of dollars. A lot of factors are considered by insurers to determine the cost of each policyholder’s insurance premium. Such factors include the replacement value of the home and possessions, insurance claim history of the homeowner, the quality of construction of the home, among others. Hence, it is often recommended that homeowners should compare home insurance rates from different insurance providers to get the most affordable and best insurance rate.

Meanwhile, independent insurance companies, agencies, and brokers provide home insurance services in Cambridge. These insurers have their services regulated by the Financial Services Regulatory Authority of Ontario (FSRA). Besides, the Insurance Bureau of Canada (IBC) and the Registered Insurance Brokers of Ontario (RIBO) provide regulatory and supervisory services to licensed insurance providers in Cambridge and other Ontario cities.

Cost of Home Insurance in Cambridge

Homeowners in Cambridge, Ontario, can expect to pay an average home insurance premium of $1,180.

Home insurance rates in Cambridge are below the provincial average in Ontario, which is about $1,280. Home insurance rates vary significantly between insurance providers. Insurers consider risks differently. Homeowners in Cambridge can still save more on their home insurance premiums by comparing rates from different insurance providers.

Types of Home Insurance Policies in Cambridge

All Risk or Comprehensive Home Insurance Policy

As the name implies, the comprehensive home insurance policy offers the broadest range of home insurance coverage. With this policy, your home and all its contents will be protected from all insured risks, except for the perils that are specifically excluded, such as uninsured perils.

Basic or Named Perils Home Insurance Policy 

The named perils policy type of home insurance offers minimal coverage on specific insured perils. Basic plans only pay for the losses or damages that are specifically outlined in your purchased policy.

Broad Home Insurance Policy

The broad home insurance policy coverage is a compromise between the comprehensive policy and the basic or named perils policy. The broad policy provides comprehensive coverage on only your home (physical structure) while the basic policy coverage protects the contents (personal possessions) inside the house.

No Frills Home Insurance Policy

The no-frills policy is usually offered on homes and properties that do not meet conventional home insurance standards, such as buildings with structural issues or in need of renovations. All insurance companies do not offer the no-frills home insurance policy.

What Cambridge Home Insurance Covers

Standard home insurance in Cambridge will cover the following:

  • Your dwelling (structure) against damages or loss caused by an insured peril such as fire, vandalism, explosion, etc.
  • Your personal belongings (contents) such as electronics, furniture, items of clothing, and more against theft, loss, or damage.
  • Additional living expenses, should there be any need for you to live elsewhere for a period of time, especially when your home is being repaired after a loss caused by an insured peril.
  • Personal liability, should you be sued for unintentional property damage to others or bodily injury sustained on your property.

Insured Perils

Cambridge home insurance generally covers the following risks:

  • Window breakage.
  • Fire.
  • Lightning.
  • Theft.
  • Wind and hail.
  • Aircraft or vehicle impact.
  • Explosion.
  • Smoke damage (excluding fireplaces).
  • Vandalism.
  • Water damage.
  • Falling objects (unless propelled by a landslide, avalanche, or earthquake).
  • Damage caused by the riot.

Uninsured Perils

Uninsured perils are risks that are not covered in standard home insurance policies. You can get coverage for these perils by purchasing additional coverage known as endorsements. All insurance companies do not offer these optional coverages. Uninsured perils include:

  • Damages caused by freezing of indoor plumbing.
  • Damages caused by earthquakes, avalanches, landslides, and other earth movements.
  • Damage to illegally acquired property.
  • Flooding.
  • Sewer back up.
  • Losses caused by the homeowner’s criminal acts.

Factors That Determine Home Insurance Premium Rates

  •  The size and type of your home, that is, whether it is a detached home, townhouse, etc.
  • The insurance claim history of the homeowner.
  • The home contents and the quality of construction.
  • The location of your home in terms of risk factors in the neighborhood.
  • The distance of the home to a fire hydrant.
  • The age of your structure’s roof.
  • The electrical and plumbing system of the home.
  • The amount of deductible.

How To Save on Home Insurance in Cambridge

  • Shop around and compare home insurance rates from different insurers.
  • Increase your home insurance deductibles.
  • Bundle your home and auto insurance policies.
  • Ask for discounts from your insurance provider.
  • Install safety systems, such as fire alarm, burglar alarm, smoke detector, etc.
  • Pay your home insurance premiums annually.

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