Transcript: Ultimate Guide to Homeowners Insurance

Home insurance is the ultimate shield against the unexpected. But you're probably wondering, what does home insurance cover? What kind of coverage do I need? We'll answer these questions and provide some home insurance tips in today's video: The Ultimate Guide to Homeowners Insurance.

Here at BIG, we're on a mission to ensure Canadians are well-informed buyers of insurance. So be sure to like, share, and follow us on social media for more insurance-related content and all things Billyard Insurance Group.

Home insurance provides peace of mind in the unpredictable journey of homeownership. But what does home insurance cover? Well, there's standard home insurance coverage that includes the building, your belongings, personal liability, and additional living expenses. Additional living expenses might be covered if you're unable to stay in your home in the event of something like a flood or fire happens. You can also get more specialized add-ons or a customized policy that directly fits your home insurance needs.

There are three basic levels of home insurance coverage: Actual cash value, replacement cost, and extended replacement cost. Actual cash value covers the cost of the house plus the value of your belongings after depreciation. Replacement cost policies cover the actual cash value of your house and your possessions without deducting for depreciation. So, that means you'll be able to rebuild or repair your home up to the original value.

Extended replacement cost is the most comprehensive and offers an inflation buffer, paying for whatever it takes to repair or rebuild your home, even if it's more than your policy limit. Guaranteed replacement value policies will absorb the increased replacement cost and provide the homeowner with a cushion if construction prices increase.

It never pays to play it cheap when it comes to your home insurance coverage. But there are a few ways that you can help cut down in your premiums. A burglar alarm tied directly to a local police station will help lower your premiums.

Smoke alarms are another BIG one. While they're typically standard in most modern homes, installing them in older houses can help save on the homeowner's annual premium. If you plan to build an addition to your home, consider the materials that will be used. Typically, wood frame structures cost more to insure because they're highly flammable. Another thing most homeowners don't often consider is the added insurance costs of building a swimming pool.

But the biggest tip of all, talk to a BIG broker. They'll field your questions, shop your coverage options, and get you the best coverage at the right price. So before the unpredictability of life happens, head over to and get some reassurance that you're covered.


Insurance for Everything.

Select an insurance product to get a quote.