Home insurance is a consideration, even before you buy a home.

Don McCormick of Maxxam Insurance in Langford said a number of mitigating factors can affect the cost of residential insurance. House hunters may want to consider these before they they sign on the dotted line for their new home.

B次元官网网址淔rom a neighbourhood point of view, do you have fire hydrants? Or wells with no fire hydrant?B次元官网网址� McCormick asked. B次元官网网址淵ou may live halfway between Jordan River and Port Renfrew and you might not have any fire protection. That increases the cost of insurance.B次元官网网址�

Finding a nice house where there is less fire protection infrastructure may help keep house prices and potentially property taxes down, he said, but those costs should be weighed against fire insurance costs that could be twice as expensive.

McCormick, who has been a licensed insurance broker for more than four decades, said itB次元官网网址檚 not just homeowners who should be insured. Tenants living in apartments or rental accommodations should also taking a serious look at doing so but few do.

B次元官网网址淟ess than 25 per cent (of renters) have tenantB次元官网网址檚 insurance. ThereB次元官网网址檚 no requirement under the landlord tenants act,B次元官网网址� he said. B次元官网网址淪o you cannot make it mandatory that you must have insurance, as opposed to a condominium owner B次元官网网址� right in the bylaws, you are required.B次元官网网址�

He warned that while a person may know what is happening in their own apartment, you donB次元官网网址檛 know what is happening next door or above or below you.

If the neighbourB次元官网网址檚 stove is left and were to catch fire, for example, it could leave you out of house and home, waiting on a bus or in the care of the Red Cross for a lengthy period of time.

Those with tenant insurance, on the other hand, will have much more comfortable accommodations. B次元官网网址淵ou want to be the person in the hotel room watching the fire on TV, not the person on the bus,B次元官网网址� he said.

Dividing into segments people who rent, who own condominiums and those that own houses, McCormick said residential insurance, or any insurance for that matter, can be complex.

Licensed insurance brokers are regulated by law and can help homeowners, especially those in their first home, with any questions before or after purchasing a property.

While purchasing insurance isnB次元官网网址檛 mandatory in British Columbia, McCormick reminds that people seeking mortgages at banks will require insurance for the residential property.

And most, if not all stratas make having residential insurance mandatory, as part of their bylaws.

B次元官网网址淧olicies are legal documents which are difficult to read, thatB次元官网网址檚 why you need to consult with an insurance broker. Doing it yourself online is not a good idea,B次元官网网址� he said. B次元官网网址淚 have been in the business 42 years and I still take continuing education courses every year. WeB次元官网网址檙e regulated by law and it is mandatory.B次元官网网址�

alim@goldstreamgazette.com

Q: Does home insurance cover everything?

Not necessarily. For example, if your home or its usage has changed, you need to let your insurance broker know. If you plan to renovate any part of your home, lease or rent a portion of your property, or even set up a home-based business, itB次元官网网址檚 your responsibility as a homeowner to report any changes to your property.

You donB次元官网网址檛 want to be in a situation where the new addition to your home is not covered, because you forgot to let your insurer know about it.

All of these things can affect your insurance and consulting your broker before these changes happen is important, especially considering that your home is usually the largest financial investment in your life.

Another important consideration is to separately insure any specific high-cost items like original works of art, collectables, or expensive jewellery. Most insurance coverage is limited in this regard.

If these items are important to you ask about optional coverage or look into riders on your main policy. DonB次元官网网址檛 assume home insurance covers absolutely everything in your house to the full extent of itB次元官网网址檚 appraised value.

ItB次元官网网址檚 a good idea to read over your policy in its entirety and ask questions if youB次元官网网址檙e not sure about what is covered.

GREATER VICTORIA MARKET UPDATE 禄 MONTH TO DATE MAY 16/16 COURTESY VICTORIA REAL ESTATE BOARD

禄 644 / 905 -- NET UNCONDITIONAL SALES / TOTAL, MAY 2015

禄 760 / 1,485 --NEW LISTINGS / TOTAL, MAY 2015

禄 2,499 / 4,043 -- ACTIVE RESIDENTIAL LISTINGS / TOTAL, MAY 2015