When we think about the types of insurance policies we use daily, we generally think of home and auto insurance. This is largely because, for many Ontarians, these are the only two necessary policies for their day-to-day. However, as more doors open and new chapters of your life unfold, you may need more insurance policies to cover certain aspects of your day-to-day life. The insurance world can be vast and intimidating, especially if you’re new to it. On top of this, the overwhelming number of insurance types to choose from can make it difficult to differentiate between what is mandatory and what is simply beneficial. This is why isure has created a list of some of the most common insurance policies in Ontario.
Insurance policies in Ontario
The concept of insurance is far from new. Studies show that ancient cultures such as the Babylonians used insurance to establish specific agreements to protect trade arrangements. Nowadays, it can be used to insure many aspects of your life, including your home, belongings, business, and even yourself! This will prevent you from paying hefty amounts out of pocket if something were to happen, such as stolen items or damaged property as a result of various perils. As mentioned above, many of these policies are required by law. In many cases, bundling multiple insurance policies under the same provider can result in significant savings. By separating which types of insurance are essential and which are optional, we can better understand the world of insurance. So, let’s take a look at the most common insurance policies available to you.
Essential insurance types
Whether it’s your car or your home, many of these are key when it comes to keeping yourself and others around you safe and secure both financially and physically. Failure to have any of these can result in not only legal trouble but a large amount of money paid out of pocket.
Auto insurance policies
One of the most mandatory types of policies on this list is auto insurance: An insurance policy taken out on a vehicle. The Insurance Bureau of Canada (IBC) states that all motor vehicles driven on the road must meet the minimum insurance requirements to ensure the safety of all drivers on the road. Auto insurance alone is a vast topic, with many secondary types of coverage that can be included in your policy. These include:
- Liability coverage may cover health and repair expenses for the victim involved in an accident.
- Specified perils coverage will offer protection in the event of damage to or loss of your vehicle resulting in explicitly named events, such as windstorms, lightning damage, or earthquakes.
- Similar to specified perils coverage, comprehensive coverage provides coverage against incidents that are considered non-collision. This includes theft, vandalism, fire, falling objects, and much more. This also applies to home insurance coverage.
- Gap coverage, which covers any remaining vehicle payments you may have if your car is considered a total loss after an accident.
- Rental vehicle coverage provides funds for a rental vehicle if an accident occurs.
Home insurance policies
Though home insurance isn’t necessarily required by law, it is highly recommended. A home insurance policy is designed to offer you safety when it comes to your home and your personal belongings within it. Sometimes, unexpected events can happen. A home insurance policy will give you financial security and peace of mind. Generally, a common home insurance policy will protect you from damages due to perils such as fire, hail, and windstorms. If any of these occur, you will be covered in the event repairs need to be done. Often, home repairs typically cost tens of thousands of dollars, which is a steep price many can’t pay upfront.
Similar to auto insurance, there are many additional types of coverage you can add to your policy. Some examples include water damage coverage, which protects you from incidents such as overland flooding or a sewer backup. For more information, check out our article 7 home insurance endorsements worth adding to your policy.
Employment Insurance policies
Employment Insurance protects different types of workers from situations where unplanned job loss or illness is required. All workers and employees in Canada are required to contribute to an EI program managed by Employment and Social Development Canada. In this process, a small amount is deducted from your paycheques, your employer must then match your contribution. In the event you lose your job or are unable to work for a long period, Employment Insurance will offer you payments until you begin working again.
Tenants Insurance policies
Though not mandatory, Tenant Insurance has proven to be beneficial for those renting their homes. Also known as Renters Insurance, Tenant Insurance will offer tenants a safety net for their belongings in the event a fire or theft occurs. Generally, it will protect you from damages that aren’t covered by your landlord’s policy. Many apartments, condos, and property management companies require all tenants to purchase standard insurance protection coverage. Due to its low cost compared to the value of your possessions, Tenant Insurance is highly recommended.
Landlord Insurance policies
Landlord Insurance operates quite similar to a home insurance policy. However, this type of coverage will protect you from damage or financial loss done by tenants. This can be used whether you are renting a room in your home or a separate space altogether. This will include coverage for the building itself as well as the contents in it, such as appliances. On top of this, landlord insurance will cover liability in the option you temporarily lose rental income. This can be due to tenants failing to pay rent or a period in which you are finding new tenants.
Additional common insurance policies in Ontario
There are various other insurance policies available. Depending on your situation, you may want to consider some of these. Whether purchased alone or with a bundle, they can help you save in the event an incident occurs.
Dental policies
Canada’s universal healthcare system ensures that most medical costs are covered. Similar to employment insurance, a small amount of our pay cheques go towards making this possible. However, our healthcare system is unable to cover a majority of dental procedures. As you’re aware, most of these are considered quite expensive. Though sometimes tied in with a plan from your employer, it is recommended to have dental insurance to save you money in the long run. This is especially true if your family has a history of dental problems.
Life Insurance policies
Life Insurance, if purchased, will offer you a payout to select family members in the event of your death. These insurance policies are generally recommended to those married or with children. This is because it can cover things such as funeral expenses. On top of this, it can provide additional funds and cover vital expenses for those closest to you in mourning.
Travel insurance policies
Though not mandatory, Travel Insurance is largely beneficial for those traveling anywhere outside the province. This will make sure you don’t pay out of pocket if an accident or injury happens. Travel Insurance will cover medical expenses as well as lost luggage or other unforeseen events while traveling. On top of this, it will cover you in the event of a trip cancellation.
Mortgage Insurance policies
If you are purchasing a home and your down payment is less than 20% of your home’s purchase price, mortgage insurance is mandatory to complete your purchase. Mortgage insurance is made to protect the lender in case you are unable to make a payment on time. CMHC mortgage loan insurance will allow you to purchase a mortgage for up to 95% of the purchase price of a home. It also ensures you get a decent interest rate. If you default on your mortgage, your insurance will also cover the remaining cost of your home.
Pet policies
Believe it or not, you can purchase policies for your furry friend! Pet insurance is essentially health insurance for your pet. It will assist you in the event your pet suffers an injury or illness. This way, you don’t have to worry about expensive vet bills. It will also cover the cost of any expensive prescription medications or supplements. The price of pet insurance can vary greatly depending on what type of pet you have and its breed.
Boat policies
Though not mandatory in the province of Ontario, many marinas require boat insurance. If you find yourself spending a lot of time on the water, boat insurance is a great way to save money. If you get into an accident out on the water, it could mean a lot of money out of your pocket. Not only will it protect you from damages or vandalism done to your boat, but also assist you in the event belongings on your boat have been stolen. On top of this, boat insurance will help you with liability claims should someone or their property be injured.
Common insurance policies: A conclusion
Acquiring the correct insurance policies is mandatory to keep you and your loved ones safe! Whether it’s for your car or your pet, doing your research and shopping around is crucial to ensuring you get the best price and best services. No matter what type of insurance you’re after, reach out to isure for all of your insurance questions. Contact us or request a quote today!
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