If you’re purchasing a home, then you’ll probably have learned there’s more than the mortgage to budget for. Besides taxes and repairs, you’re also going to have to leave room for home insurance. This is because your financial institute is not going to be okay lending you hundreds of thousands of dollars for an uninsured house that could burn down tomorrow. But whether you’re buying your first home, have owned your property for years, or are still renting, you should consider home insurance. Here’s why:

Home Insurance 101 - Patrick Murray - Calgary Realtor

They’re There for You After a Catastrophe.

When you’re the victim of fire, flooding, or burglary, it’s common to feel confused, emotional, even vulnerable. Having proper insurance can help to relieve some of these feelings by providing you with the money you need to have your home repaired and your possessions replaced. For young homeowners who are struggling already, a comprehensive insurance plan can be a financial lifesaver after a major incident.

It’s Usually Affordable.

If you payed $300,000 for your house, that’s how much you should insure it for, right? Wrong. You should actually be able to insure your home for substantially less. This is because the land your house is sitting on is likely a good percentage of your home’s value. And that land can’t be stolen or really even damaged. Even after a terrible fire, the land your house sits on will still be there, so you can simply remove the cost of land from the value of the home. If you still feel like your premiums are too high, try raising your deductible.

Liability Coverage.

Regardless of whether you rent or own, if someone gets hurt on your property, you could be sued and found liable for damages. That’s pretty scary since it’s hard for Canadians to know what degree of care they owe friends, family members, and even the complete strangers who walk on the sidewalks in front of their houses. Home insurance takes all the mystery and headache out of liability because any comprehensive home insurance should protect you from damages.

All Canadians, whether they’re homeowners or not, should consider having home insurance. It protects you from liability, helps you to recover from a catastrophe, and is usually affordable. Beyond that, if home ownership is one of your dreams, you’re going to need to get insurance eventually anyways. Why not learn the ins and outs of home insurance while you’re still renting?