Now that we’ve talked about some of the risks and optional add-on coverages available, let’s take a look at the four main types of policies. Standard homeowners insurance in Fort McMurray comes in four different forms: comprehensive, basic, broad, basic and no frills.
Comprehensive: When it comes to basic home insurance policies, this one covers the most. Comprehensive insurance is designed to cover all insurable risks to your home. It will cover the replacement value if your home is destroyed in an event such as a fire or windstorm, as well as protect the contents of your home. A comprehensive policy does not include the optional coverages mentioned above.
Basic or named perils: This will only cover you for very specific situations that you’ve stated in your policy. You won’t have coverage for anything you haven’t specifically asked for. While you’ll find fewer events covered than you would in a comprehensive policy, you’ll also pay less.
Broad: This policy aims to strike the sweet spot between comprehensive and basic. You’ll have more coverage than basic, but less than comprehensive. Your home’s structure is covered against every kind of insurable loss, while the contents of your home are only covered against perils that you specify. Check with your insurer to see what exactly will be covered with the broad policy they offer as each policy is different.
No-frills: This is the most basic level of coverage. If your home has serious issues, such as structural problems, it may be the only insurance you qualify for. While this policy will cover the cost of repairs for damages, you don’t have any, well, frills here. For instance, if you have to leave your home due to damage, don’t expect this coverage to pay for your nights at a hotel as other policies might.
As mentioned, you can buy additional coverage that may not be included in the four policy types mentioned above. These are often referred to as insurance endorsements. Make sure to speak to your agent or broker about endorsements such as sewer backup or overland flooding if you’re concerned about these issues.