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July 9, 2019  •   6 minute read

Why Not Having Home and Auto Insurance Impacts Your Future

If you don't have Home and Auto Insurance It May Affect Your Future

Why Not Having Home and Auto Insurance Impacts Your Future

Insurance is one of those intangible necessities in life. We all hate paying insurance premiums, but it is needed and is also something you hope you never have to use. Since cities require all car owners to have car insurance, drivers typically have insurance.

Homeowners insurance is different because there is not a law mandating homeowners have insurance. While living in Ontario, finding best Home and auto insurance is an essential part of being a responsible adult and gives a piece of mind to know if the unexpected happens, you will won't be on your own.

Homeowners Insurance

Having homeowners insurance is not required by law, but it may be difficult to close on a property without it. When buying a home, you can either pay cash or get a loan from a bank that will offer a financing package to repay the loan amount.

If you plan to finance, as most people do, the bank owns the home until you pay the loan back, and the bank may mandate you obtain homeowners insurance. The bank will require you to purchase insurance to protect the home because they own the house.

Insurance is the only thing to protect the asset the bank has invested thousands of dollars. If you, for whatever reason, fail to secure adequate homeowner's insurance, the bank may purchase a policy, put it in your name and add the monthly premium payments to your monthly mortgage payments.

Home insurance protects your home from the unexpected crises we all have to endure at some point during our lives. Your home is, in many cases, the most valuable asset you own, and an insurance policy is needed to protect it from scores of potential hazards. Protection for things like theft, damage from weather including wind from tornadoes and hurricanes, floods, fires, vandalism, and thunderstorms.

In the cases that involve break-ins, the damage caused by the actual break-in covered, but also all your personal belongings. If you have to temporarily live in a hotel because your home has suffered extensive damage from storms, floods, fires, or other natural disasters, homeowner's insurance will cover these expenses. Homeowner's insurance would also cover the cost associated with laundry/dry cleaning and even cable and internet access.

Being a homeowner comes with additional responsibilities, which may not cross your mind. For example, as a property owner, you are responsible for any injuries suffered on your property. During the winter months, you can be held accountable if someone slips and falls on your walkway, and without homeowner's insurance, you are liable for medical costs.

You may also be held responsible if a kid hops your fence to retrieve a baseball and falls in the process. Specific policies will even cover injuries you suffer away from the property and pay for lost wages due to these injuries and medical bills.

Homeowner's insurance not only covers your items, if someone hurts themselves on your property, and damages, but it also protects you in case your home is destroyed, and you have to rebuild your home from the ground up.

Now we have touched on various aspects of homeowner's insurance, and multiple things it covers, however, each policy is different, and it is essential to understand your coverage details. Insurance is an intangible product, and nothing is worse than after suffering a disaster you find out you're not covered. When purchasing insurance, it is in your best interest to think carefully about the worst-case scenario and research which insurance companies include what would be needed. Homeowners insurance typically comes in three levels.

Your primary homeowner coverage pretty much covers some natural disasters, usually about ten events. The basic policy is fundamental and offers the bare minimum while more comprehensive coverage is available than that offered at the 1st level.

In most cases, the next level will provide coverage that includes about 16 events. Your home would be covered for vandalism, damage caused from break-in and theft. During the winter months, usually after a cold spell, pipes tend to burst, and this policy would cover the cost under these conditions. And in most cases include a roof collapse due to snow or rain damage.

The top tier of coverage and covers just about everything that can cause damage to your home. With comprehensive coverage, everything is included, and that which is not will be listed under the excluded section of your policies fine print. Typically, homeowner's insurance will cover stolen or damaged items at around 50 percent to 75-80 percent.

Auto Insurance

Auto insurance is mandatory today, and you must have basic liability insurance to legally drive a vehicle. Without basic auto insurance, and you get into an accident, it can lead to you being held liable for property damage, hefty fines and held responsible for covering any medical bills as a result.

Generally, people tend to take for granted just how potentially dangerous driving a car can be, and without insurance coverage, your life can spiral out of control quickly. We have established the importance of auto insurance to your future, now dive into the different levels of coverage.

Basic Liability Coverage

Liability auto insurance is the absolute minimum coverage you can have for auto insurance. Liability is just that; it covers damages that you are liable for in the case of an accident. You will be covered for all damage caused by you the case of a car accident.

Coverage for Uninsured Drivers

This type of coverage is to protect you and your property from damage caused by a motorist who failed to obtain basic liability insurance. This coverage will cover you if another driver hits you and decides to run from the accident. Uninsured driver's insurance is more comprehensive than liability as it protects your property also in the case of a crash, unlike basic liability that only covers damage you cause to others' property.

Gap auto insurance covers the "gap" between the value of your vehicle and the current blue book value. In the unfortunate case when an accident results in the total loss of a car you still owe money to a bank, you will be responsible to either continue paying the car note to the bank or pay off the remaining balance in one lump sum.

For example, if you have a $20,000 car loan for a vehicle you purchased a year ago, and you have an accident that destroyed the car, which you still owe the bank $15,000, but the car is only worth $11,000 your insurance coverage will not be responsible for the remaining $3000. Having comprehensive gap insurance is very important to your future.

Towing and Other Service Insurance

Towing, roadside assistance, and other services are usually included with a policy other than basic liability. In cases where towing and roadside assistance is not included, most insurance companies will offer this service for an additional fee.

Rental Car Coverage

Rental car insurance support, like towing and roadside assistance, is typical include coverage other than basic liability. Having rental car coverage will cover some or most of the costs of the rental car while your car is being repaired after an accident. With rental car insurance, there are limits on the number of days you are covered, and the cost included, so be sure to pay attention to the details regarding this support.

Car Insurance for Collectable Vehicles

This type of insurance is often referred to as classic car insurance. Classic insurance coverage is reserved for cars that are considered collectible items. Vehicles that are categorized as timeless may vary widely from insurance company to insurance company.

Generally speaking, classic cars are vehicles whose value increases with time, instead of depreciating like most cars. Vintage car insurance premiums are cheaper, anywhere from 20 percent to 40 percent less. The premiums are less expensive because classic cars are rarely driving, and typically driving for pleasure and are less likely to be involved in accidents.

Opting for home and auto insurance in Ontario can positively impact your future. Your vehicle and home are where you spend most of your time, and it is essential to protect these assets. We can't predict the future, but we can prepare for unexpected events we all experience at some point in our lives.

Your home can suffer damage from fires, break-ins, vandalism from riots, lighting, wind damage from tornadoes or storms and without comprehensive homeowner's insurance you may not be able to financial put your life back together.

Auto insurance protects your vehicle, yourself, and other property from damage as well as medical expenses. Since in most instances basic auto liability insurance is mandated by law to operate a vehicle, options like uninsured motorist's insurance, comprehensive insurance, medical payment coverage, personal injury, roadside assistance, and gap coverage become very important for your future.

Taking the risk and deciding not to obtain comprehensive home and auto insurance is a risk not worth taking and gamble your future may not be able to recover. So, if you are concerned about the future of yourself & your family you should consider opting for these insurances and if you are looking for home and auto insurance in Ontario then contact us today!

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