Moving House: Essential Home Insurance Tips to Save Money
Quebec residents moving on July 1 should contact their insurers immediately to ensure continuous coverage and secure potential discounts, according to industry experts. Proper home insurance protects against liability and property loss, preventing potential bankruptcy or long-term legal judgments for uninsured tenants who may be held responsible for building damages.
How should movers handle insurance before July 1?
Lydia Roy, vice-president of product, pricing, and underwriting for general insurance at TD Insurance, advises calling insurers before the move date. This step ensures coverage remains valid while transitioning from one residence to another.
Roy notes that while most contracts cover goods during transport, some policies contain specific clauses if items are stored between residences. She also recommends taking photographs of important objects before packing to simplify claims for theft, loss, or breakage.
How can homeowners reduce their insurance premiums?
Carlos Melo, head of technical affairs and the Information Centre for the Insurance Bureau of Canada, suggests bundling home and auto insurance policies to access discounts. Homeowners can also lower costs by opting for a higher deductible, which is the amount the policyholder pays during a claim.
Melo states that property maintenance helps avoid claims and saves money over time. He also notes that installing detection systems for fire, theft, or water damage can further decrease insurance costs.
Why is insurance necessary for renters?
Although not required by law, Carlos Melo emphasizes that renters often mistakenly believe a landlord’s insurance covers their personal belongings. In reality, the landlord is generally not responsible for compensating tenants for lost or damaged goods during a fire or water leak.
Me Antoine Morneau-Sénéchal, a lawyer specializing in housing law, identifies two essential types of coverage for tenants:
- Liability insurance: Covers events caused by the tenant. For example, a poorly connected washing machine that causes flooding is easily proven as the tenant’s fault.
- Property insurance: Protects furniture and personal effects.
What are the legal and financial risks of being uninsured?
Uninsured tenants facing a disaster may have to pay thousands of dollars in repairs, which Morneau-Sénéchal warns could lead to bankruptcy. If a case goes to court, uninsured individuals must pay their own legal fees, while landlords typically have their lawyer costs covered by their own liability insurance.
Morneau-Sénéchal notes that while the law does not mandate liability insurance, landlords can legally include a clause in the lease requiring it. He suggests that while making insurance mandatory by law may be impractical due to tight budgets, greater public awareness is necessary.
Additionally, home insurance typically provides an indemnity for relocation, covering hotel costs while the tenant finds an alternative living arrangement after a disaster.
Frequently Asked Questions
Is it mandatory for tenants in Quebec to have home insurance?
It is not mandatory by law, though landlords can legally add a clause to the lease requiring the tenant to be insured.
What happens if a tenant causes damage to a building without insurance?
The tenant may be responsible for thousands of dollars in repairs. A landlord could obtain a judgment that is executable for 10 years and accumulates legal interest.
Does a landlord’s insurance cover a tenant’s furniture?
No. According to Me Antoine Morneau-Sénéchal, the landlord is generally not responsible for compensating tenants for their personal belongings; this is the role of the tenant’s own property insurance.
Do you currently bundle your home and auto insurance to save on monthly premiums?