April 25, 2022
Your dream is finally coming true! You will soon get the keys to your first home. But have you thought of everything to avoid unpleasant surprises before your move? Our guide to help you forget nothing!
The basic questions
Even if the house meets all your criteria, certain checks are necessary, starting with the very first visit. For example, in what year was the current roof installed? Are the works under warranty? If so, can the warranty be transferred to the new owners? Asking the owners several questions will allow you to assess the building’s maintenance. The installation year of the windows, electrical panel, water heater and septic tank is also crucial. Since they must be replaced after a certain period of time, this will help you assess the work to be done in the short and long term, while also protecting you against the risk of breakdowns. Elements not to be overlooked in the equation!
The inspection
Have you made your choice? To make sure no details slip through the cracks, hire a building inspector before buying. They can ensure there are no apparent problems, and suggest work and areas for improvement. Share this pre-purchase inspection report with your insurance broker, who can then advise you on the work to be done to reduce the risk of damage—and perhaps even your premium.
The right insurance policy
Mortgage lenders generally require future owners to take out home insurance starting on the very first day they take possession of their new home. The reason is simple: since the property is used as collateral for the lender, their asset (and yours) must be properly protected.
Home insurance therefore covers the replacement of all your belongings, the costs to rebuild the building, and your civil liability (if a guest is injured in your home, for example).
In general, there are two possible types of coverage. The basic plan (or named perils) offers protection against various events, such as theft, fire or vandalism. Some water damage is also included. All-risk insurance, on the other hand, offers broader protection. However, certain risks are excluded and must be covered by an endorsement (additional coverage). This is the case, for example, for damage caused by water infiltration through the roof. In all cases, an insurance broker will be able to guide you in making the right choice.
Location
Is your future residence located near a waterway? You can protect it against theft, fire and vandalism without any problem. However, flood protection—which must always be added as additional coverage—varies if the home is built in a flood zone. To get the right information, contact your insurance broker.
Another item to check: municipalities have sometimes adopted specific rules regarding the reconstruction of a building. For example, in some neighbourhoods of Montréal, single-storey shoebox-type homes must be rebuilt as two-storey homes in the event of a loss, which increases the cost of restoration work and, therefore, your insurance premium. To avoid unpleasant surprises, check the bylaw with the municipality. Since your insurance broker does not have access to this information, do not forget to inform them of these rules.
Valuable items
You have invested in a quality guitar or a specialized bike. The amount covered by your home insurance may be limited for items of this type. Inform your insurer to benefit from coverage tailored to your situation. The same applies if you are self-employed. If you welcome clients at home or store expensive equipment there, you may need to add an endorsement. Pools and spas are also excluded from standard policies and require additional coverage.
In short, buying a first home is one of the most important investments in a lifetime. That is why it is essential to protect it properly. Your insurance broker is your best ally to achieve this. Contact us to get a home insurance quote now!
This site provides general information only. Please refer to your insurance policy, which prevails at all times.
