When it comes to home insurance in Calgary, one of the most important decisions we face is whether to choose basic or extended coverage. The right home insurance policy can provide peace of mind, knowing that our property and belongings are protected. However, with so many options available, it can sometimes feel overwhelming.
In this blog, we’ll break down what basic and extended home insurance coverage means, and help guide you through the process of making an informed decision that suits your needs.
What is Basic Home Insurance Coverage
Basic home insurance typically provides the minimum level of protection for homeowners. This coverage usually includes essential protection against damage or loss due to fire, theft, or vandalism. It generally covers the structure of the home, as well as some of your personal belongings.
Extended Home Insurance Coverage
On the other hand, extended home insurance goes beyond the basics, offering more comprehensive coverage. With an extended policy, you’re often protected against additional risks, such as natural disasters, accidental damage, and even issues like personal liability.
Now that we’ve outlined the basic differences, let’s dive deeper into what each type of coverage includes.
What Does Basic Home Insurance Cover?
Basic home insurance is designed to provide essential coverage for homeowners who want protection from some common risks without paying for unnecessary extras. Here’s what you typically get with a basic policy:
- Damage Protection: Covers damages to the physical structure of your home caused by fire, theft, or vandalism.
- Personal Property Protection: Covers the loss or damage of personal belongings like furniture, clothing, and electronics due to covered events.
- Liability Coverage: Provides financial protection if someone is injured on your property or if you’re legally responsible for damages.
- Loss of Use: Pays for temporary living expenses if your home becomes uninhabitable due to damage.
While basic coverage offers the essentials, it might leave out some of the risks that homeowners in Calgary face. Let’s explore what extended home insurance provides to fill in those gaps.
What Does Extended Home Insurance Cover?
Extended home insurance offers a broader level of protection, which may be more suitable for homeowners who want extra peace of mind. Here’s a look at some of the additional coverage options that are typically included:
- Natural Disaster Coverage: Extended policies often cover damage from natural disasters such as floods, earthquakes, or storms. These aren’t usually covered under basic policies, but they can be critical in a city like Calgary, where extreme weather events can occur.
- Accidental Damage: Accidental damage coverage protects against damages that happen unintentionally, such as breaking a window or spilling water on your electronics.
- Replacement Cost Coverage: While basic policies may only cover the actual cash value (ACV) of lost or damaged property, extended policies often cover the full replacement cost, without deducting depreciation.
- Additional Liability Coverage: Extended coverage provides higher liability limits in case someone is injured on your property, offering more protection against expensive lawsuits.
Cost Comparison: Basic vs Extended Coverage
One of the main differences between basic and extended home insurance policies is the cost. Basic policies are generally more affordable because they cover fewer risks. However, depending on your home’s value, the risks in your area, and the extent of your coverage, the cost of extended coverage may be well worth the investment.
- Basic Coverage Quote: On average, basic home insurance policies tend to have lower premiums due to the more limited protection offered.
- Extended Coverage Quote : Extended policies typically cost more, but the extra protection they offer can save you a significant amount of money in the event of a claim.
If you’re unsure about what type of coverage fits within your budget, speak with one of our experts at Affordable Quotes Insurance. We can provide a clear comparison of costs and help you decide what’s best for your home.
How to Determine Which Type of Coverage You Need
Deciding between basic and extended home insurance ultimately comes down to a few key factors. Here’s how you can assess which coverage is right for you:
Consider Your Home’s Value and Location
If your home is located in an area prone to natural disasters or if you have valuable items that would be expensive to replace, extended coverage might be worth the extra investment.
Assess Your Risk Tolerance
Some homeowners are comfortable with basic protection and are okay with assuming certain risks, while others prefer the peace of mind that comes with more extensive coverage.
Your Budget
While extended coverage offers more protection, it usually comes with a higher premium. Consider how much you’re willing to spend and whether the added coverage aligns with your budget.
The Condition of Your Home
If your home is older or in need of repairs, an extended policy can offer extra protection against issues that might arise over time.
Conclusion
Choosing between basic and extended home insurance coverage doesn’t have to be a difficult decision. By considering your home’s value, location, personal needs, and budget, you can make an informed choice that offers the right balance of protection and affordability. For more information or to get a free quote, feel free to reach out to us. We’re here to help you protect what matters most.