Get the Best Home Insurance Rate in B.C.

Home insurance in B.C.

In B.C., having home insurance coverage is not mandatory. But if you purchase your home with the help of a mortgage, your lender may require you to have adequate home insurance coverage to protect the collateral. Having home insurance coverage in general is a smart choice, as your home is most likely going to be one of your biggest investments.

Home insurance allows you to be ready for any sudden home-related costs caused by a variety of factors such as natural disasters, fire, theft, injuries etc. which can be expensive and may put your assets at risk when lawsuits and bills pile on. You don’t want to be solely responsible for the cost of repairs, displacement bills and liability claims, when they can be easily covered by an insurer. Your premiums are a small price to pay for such coverage, as you’ll be covered for a variety of risks. Best of all, you can choose to customize your policy according to your personal home insurance needs.

Common risk factors homeowners face in B.C.

Most B.C. homeowners are aware that the province is an earthquake prone zone, with Victoria and Vancouver being densely populated cities situated on two major tectonic plates. Offshore earthquakes also occur frequently.

Earthquakes can cause extensive property damage. Even weak tremors can severely impact the structure of your home, as well as damage its contents. Damage to the structure of your home is a very dangerous problem and you cannot avoid repairing it after it occurs. A weakened structure can lead to potential injuries or deaths. Having earthquake coverage is crucial if you are living within or near an earthquake prone area. Please note, earthquake coverage is usually offered as an add-on by most home insurance companies. Ask your insurer for more details on earthquake coverage.

Forest fires are also quite common in the province which is why most home insurance policies will cover such forms of unintentional fire damage. Vancouver Island, Kelowna and Penticton face a high risk from forest fires because of the close proximity to dense forest areas. If you reside in an area that faces a risk from frequent forest fires, check if your home insurance policy includes adequate fire coverage. You can always ask your home insurance provider about the most optimal policy coverage for your home.

What a standard home insurance policy may not cover in B.C.

Your standard home insurance policy will not cover any of your property dues such as taxes or mortgage payments. Some insurance companies will also exclude coverage for natural disasters and/or outer structures built on your property. Carefully read your home insurance policy and ask your insurer for more information on policy exclusions.

What determines the cost of home insurance in B.C.?

B.C. insurance providers will look at the following factors to determine your insurance premium:

1. Property type: Your home’s structure and size will directly impact your home insurance premium. For example, a semi-detached house involves includes more risk and liability because it is attached to another home.
2. Credit score: Most insurers use credit scores to determine insurance premiums but please note that having a low credit score won’t negatively impact your premium. A great score, however can earn you a home insurance discount.
3. Replacement cost: The replacement cost of your home affects your home insurance premium. This cost is estimated by calculating how much it would cost to rebuild your home and restore it to its previous state using similar materials. If you complete any home renovations, always inform your insurance company so the replacement cost can be updated to reflect the new changes.
4. Location: The risk factors that come with your property’s location are taken into consideration by the home insurance provider when calculating premiums. This includes crime rates, proximity to fire hydrants, water sources, airports among other things.
5. Internal construction: Your home’s construction affects your insurance premium. Old wirings and pipes can increase the cost as such old parts are more damage prone. Old wiring and fuse boxes can increase the risk of fire. Similarly, old lead pipes can burst during winter and cause extensive water damage. To avoid higher premiums due to old materials, try upgrading them.
6. Roof: The age and condition of your roof influences the cost of your home insurance premium. An old or damaged roof will most likely increase the cost of your premium as it is more prone to leaks and further damage during the wet and cold months. Getting your roof professionally replaced or repaired will help you reduce your home insurance premium. Although they are quite expensive, metal roofs can be more resilient in the long run.
7. Past claims history: Insurers usually pull up your claims history to determine your new home insurance premium. This includes looking at how many claims you’ve made in the last five-10 years. The more frequent or failed claims you have, the higher your insurance premium may be. Try asking for a claims forgiveness discount from your insurer.
8. Pets: Having pets on your property can increase your liability, causing your insurance premium to go up. If you own an exotic and valuable pet, like a boa constrictor or fennec fox, they will further raise your premium.
9. Special/commercial use: If you use a part of your home for a special or commercial purpose, it will raise your insurance premium. This includes Airbnb rentals, daycare rooms etc.
10. Pool and other accessory dwellings: Additional structures and accessory dwellings such as a swimming pool or treehouse will increase your premium because they come with both an added risk and liability. If you have a pool on your property, you face the risk of people drowning or injuring themselves in it. To lessen this risk, you can have a fence installed around the pool and inform your insurer about the safety addition to slightly lower your premium. You can take similar measures with a treehouse and/or other added structures on your property.