Do you have a home in Peterborough, Ontario, or thinking of buying a new property? Here’s a review of how home insurance works in Peterborough.
Home insurance is an essential addition for all homeowners in Ontario. Moreover, homeowners in Peterborough are provided with diverse options for securing their homes and personal belongings against insurable risks.
The home is one of the most significant investments for most homeowners in Peterborough, which requires adequate coverage against unforeseen circumstances. In this review, we’ll outline the factors that determine premium rates, quotes, and prices of home insurance in Peterborough, and tips on how to get affordable home insurance, among others.
Peterborough is a Canadian city located along the Otonabec River in Central Ontario. Peterborough is known as the gateway to the Kawarthas – Cottage country. The city lies about 125 kilometers northeast of Toronto and 270 kilometers southwest of Ottawa.
Famously known as the Electric City, Peterborough is the first town in Canada to use electric streetlights. Peterborough is the seat of Peterborough County. The city has a population of 81,032 residents based on the 2016 census data, making it the 70th largest municipality in Canada by population.
Living in Peterborough
Peterborough is the fastest growing city in all of Canada, followed by Kitchener-Waterloo. Peterborough is a safe, clean, and friendly community. The city has a total land area of 64.05 square kilometers.
The cost of living in Peterborough is about 2 percent higher than the national average. The total cost of living in the city is around $1637. Peterborough is considered the second most suitable place in Canada to buy real estate.
A Quick Overview of Peterborough Home Insurance
The home is unarguably one of the best investments you can possess as a homeowner. Apart from the structure, the personal belongings of the homeowner are valuables that require adequate protection from losses and damages caused by insurable risks.
As a homeowner, the best protection you can give your home is proper home insurance coverage. A standard home insurance coverage policy ensures that you and your family have peace of mind, knowing that your home and its contents are safe from harm.
Peterborough home insurance provides custom coverage that meets your unique coverage needs. No two homeowners are the same, just as there are different home insurance needs. There are several risks (known as insurable perils) that can lead to the loss or damage of the home. Therefore, the best thing is to avoid such dangers by protecting yourself and your properties from all forms of financial burdens. Getting the right home insurance package goes beyond having the cheapest policy but having the ideal coverage for your needs.
How Does Home Insurance Work in Peterborough?
Home insurance in Peterborough is a contract or agreement between an insurance provider and a homeowner. With this package policy, the insurance company provides coverage for your dwelling, personal belongings, additional living expenses, other structures, and personal liability. In exchange, the homeowner is obligated to make periodic payments, known as a premium, either monthly or annually to the insurance provider.
As a result, in the event of any loss or damage to the home and personal possessions of the policyholder, the insurance company will indemnify the homeowner for the cost of repair, rebuild, or replacement of the lost, stolen, or damaged properties.
With a home insurance package, homeowners can protect their valuable possessions by opting for policies that encompass their coverage needs. To enjoy coverage on the home, homeowners are expected to purchase a standard home insurance policy from an accredited insurance provider – broker, agency, or company.
Should you work with a Broker?
It is essential for homeowners in Peterborough to have an adequate understanding of how home insurance works in the city. As a result, you should consider employing the services of an independent insurance broker that knows the nitty-gritty of the insurance market in Peterborough and the entire Ontario province. However, it might be more affordable to search for and apply to a home insurance program yourself.
Brokers are licensed and accredited professionals that are knowledgeable, dedicated, and committed to helping you find the best and most affordable home insurance coverage. Independent insurance brokers work with insurance companies to you the best home insurance package for your coverage needs.
Regulations of Insurance Providers
Insurance broker and companies in Peterborough are regulated by governmental and independent regulatory bodies, including:
- The Financial Services Regulatory Authority of Ontario (FSRA).
- The Registered Insurance Brokers of Ontario (RIBO).
- The Insurance Bureau of Canada (IBC).
- Office of the Superintendent of Financial Institutions (OSFI).
- The Canadian Council of Insurance Regulators (CCIR).
- The Canadian Insurance Regulators Disciplinary Actions (CIRDA).
- The Canadian Insurance Services Regulatory Organisations (CISRO).
Is Home Insurance Mandatory in Peterborough?
Unlike the compulsory car insurance for vehicle owners and drivers, home insurance is not a legal requirement for homeowners in Peterborough and across the Canadian region.
Meanwhile, homeowners who owe a mortgage on their properties are required by lending institutions to obtain standard insurance coverage on their investments.
Regardless of whether home insurance is mandatory or not, it is recommended that all homeowners should insure their properties to safeguard their home against insurable perils.
Average Quotes and Prices of Home Insurance in Peterborough
Homeowners in Peterborough can expect to pay, on average, between $700 and $2500 as home insurance premium annually.
As obtained in other Ontario cities, there is no standard or a fixed rate for home insurance in Peterborough. Independent insurance providers operate and provide home insurance, and these insurers consider risks differently. Providers like Square One offer home insurance from $12 per month.
Home insurance rates vary significantly in hundreds and thousands of dollars. These rates, known as insurance premiums, are determined by insurance providers by considering several factors, including the replacement value of the home, the type and size of the property, and the insurance claim history of the homeowner, among other factors.
Consequently, homeowners are enjoined to shop around and compare rates from different insurance providers before settling for their preferred insurer.
Square One offers some of the cheapest and most comprehensive home insurance policies.
Home Insurance Policies
Comprehensive or All-Risk Home Insurance Policy
Comprehensive home insurance policy includes all forms of coverage against insurable perils, except for expressly excluded risks. These perils include theft, fire, vandalism, window breakage, lightning, explosion, riot, and more.
Named Perils Home Insurance Policy
The named perils policy covers the home contents that are expressly stated in the purchased policy.
Broad Home Insurance Policy
The broad home insurance policy encompasses the Comprehensive policy and the Named perils policy. With this policy, Comprehensive coverage is provided for the home while Named perils coverage is provided for the home contents.
No Frills Home Insurance Policy
The no-frills home insurance policy is provided on structures that do not meet the average home insurance standard.
What Does Home Insurance Cover?
Most home insurance policies in Peterborough provide the following coverage:
- Coverage against loss or damage to the home (dwelling) and other additional structures on the property.
- Coverage against loss or damage to your personal belongings in the house.
- Coverage against lawsuits on personal liability arising from accidental property damage to other people’s property or bodily injury sustained by others on your property or anywhere in the world.
- Coverage against additional living expenses for the period that you have to stay away from home due to repairs being made to your home after an insured loss.
How To Find the Best Home Insurance in Peterborough
- Shop around and compare quotes/rates from different insurance providers to get the best and most affordable deal.
- Work with an accredited and certified insurance broker with proven track record.
- Increase your home insurance deductibles.
- Bundle your home and auto insurance policies with the same insurer.
- Pay your home insurance premiums annually to cut off administrative fees that are usually associated with monthly premium payments.
- When purchasing homes, choose safe neighborhoods and avoid ancient houses with outdated equipments.
- Choose your purchased home insurance policy in relation to your coverage needs.
- Get additional coverages (endorsements) if necessary.
- Install additional home security systems.
Factors That Determine Home Insurance Rates
- The replacement value of the home.
- The insurance claim history of the homeowner.
- The location of the house in relation to the risk factors in the neighborhood.
- The distance of the home from fire hydrants.
- The type of policy chosen by the homeowner.