Unlike auto insurance, home insurance isn’t mandated by the Nova Scotia government. For this reason, some homeowners will choose to opt out of it, putting themselves and their finances at risk. Home insurance is a great way to protect yourself from life’s unexpected surprises and avoid the risk of financial loss. In this article, you’ll learn about the benefits of home insurance and what coverage options CUA offers its members. 

What is home insurance?

A home insurance policy is a legal contract between you and your insurance company that specifies the ways in which your home and possessions may be protected from things like theft, loss, damage to your home, liability from someone getting injured while visiting your home, or liability for accidental damage to someone else's property. Your insurance policy will specify what exactly is covered by your insurance company, and under what circumstances you’ll be paid by your insurer.

How does home insurance work?

When you pay your home insurance premium, that money (along with the money other consumers pay) is collected in a pool. When somebody makes an insurance claim, the benefits they receive are drawn from this pool. If your insurer believes you’re less likely to draw from the pool, you’ll pay less in premiums; if you’re more likely to draw from the pool, you’ll pay more.

Home insurance may protect you from financial loss in scenarios like somebody breaking into your home, your home getting damaged during a fire or flood, or somebody slipping and hurting themselves on your property. Some home insurance policies will even reimburse your living expenses if you're temporarily unable to live in your home, by covering hotel expenses. There are many scenarios where having home insurance comes in handy. 

There are generally four kinds of insurance policies you can choose from. In order from the most to least amount of coverage provided, these policies include comprehensive, broad, basic/standard and no-frills. Comprehensive, as its name suggests, is a more robust policy and would cover both the building and its contents for all but the specifically excluded risks. A no-frills policy, on the other hand, is the least comprehensive, with only the essentials covered; for example, under a no-frills insurance policy your home repairs may be covered but not the cost of staying in a hotel during the construction. This type of policy generally covers properties that don’t meet normal insurance standards, such as “fixer-upper” homes undergoing significant renovations.

It’s important to consider your specific needs when purchasing home insurance. You’ll also want to keep in mind any exclusions named in your policy that won’t be covered; for example, if floods are listed as an exclusion, you wouldn’t be protected from financial loss caused by damage from a flood.

What affects a home insurance policy?

Your home insurance policy is effected by many different factors, which is why you should keep your insurer up to date on any changes to your property or living situation; if you are renovating your home, setting up a business from your home, or inviting somebody to live in/rent out part of your home, you’ll want your insurer to know. It’s also important to note that other structures on your property (such as a shed) may need separate coverage.

Why do I need home insurance?

Home insurance, unlike auto insurance, is not required in Nova Scotia. However, it’s always in your best interest to be prepared for life’s unexpected challenges. Home insurance provides consumers with a safety net so that they can feel confident in their home finances.

You can also buy insurance online, over the phone, or in person from a licensed insurance agent, registered insurance broker, insurance company or a lender when you apply for a loan.

What does CUA offer?

Through CUA’s Home and Auto Insurance Program, members have the option to group their home and auto insurance together so that we can offer you exceptional discounts. This Program offers 24-hour, 7-days-a-week claims service, no premium increases for client-paid claims, free claims advocacy, access to CUMIS’ claims appeal process, preferred repair and replacement contractors with guaranteed service, and free additional advice and expertise for incidents that are not covered. 

If you would like to learn more about your insurance options, reach out to a member of the CUA team at 902.492.6500. 


Published August 12, 2022