Is Property Insurance and Homeowners Insurance the Same?

Is Property Insurance and Homeowners Insurance the Same?

Although homeowners or property insurance isn’t mandatory, those who are applying for a mortgage on their home are usually required to provide proof of insurance to their bank or a lending institution in order to qualify. The terms “homeowners insurance” and “property insurance” are quite often used interchangeably, however, they are essentially the same. There are several options available when it comes to purchasing a home insurance policy and this article will go over many of these options.

Comprehensive Coverage

For those who have comprehensive home insurance, they will likely be protected against losses and damages to the dwelling and its detached structures.   This would normally include the house itself, permanently installed outdoor equipment, swimming pools and related equipment and materials stored for repairs or building extensions.  The insurance would normally cover the replacement costs of these structures and materials due to specified perils.

Specified Perils

These are the conditions under which you would be insured.  Common specified perils may include fire, theft, vandalism, poor weather conditions, flooding, lightning, falling objects, and collision.  That said, every policy is different, so you should check to make sure yours includes your needs. 

Liability

Liability coverage will cover costs incurred if you injure or damage the property of others on your property or anywhere else in the world.  This would include incidents such as someone falling while on your property, accidentally hurting someone while on vacation as well as the costs associated with the defense of court procedures against you due to injuries or damage of someone else’s property. 

Personal Contents

Personal contents would include your possessions such as appliances, clothing, furniture, computers and most other belongings.  If you have highly valuable items or collections such as artwork, musical instruments or jewelry you should inform your insurer about this beforehand as you might need to upgrade your coverage.  If you have property stolen from, or damaged, while in your vehicle, this will be covered under your homeowner’s insurance. 

Your personal property will be covered if it’s away from your home temporarily, such as on vacation.  Personal property stored somewhere else may be covered, but you should talk with your insurer about the specific circumstances regarding legitimate storage facilities.

Medical Coverage

If someone is accidentally injured at your home and they require medical attention that isn’t covered under normal health insurance, your liability coverage will cover the costs relating to the accident, providing medical and rehabilitation coverage to the injured individual.

There are normally limits on these costs and again, all policies are different, so the coverage would change accordingly.

Additional Living Expenses

If you are forced to leave your home for a period of time due to a specified peril, you would be reimbursed for the costs of alternative living arrangements and storage of your possessions.  This could include evacuations, damage to neighboring properties or if your home is considered unfit to live.

To find out more about homeowner or property insurance, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.