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Do You have Enough Insurance on Your Home in London Ontario?


With the recent house and condo values in London, Ontario, have you checked your insurance coverage on your home lately? Is it enough? Did you know that 73% of homes in Canada are underinsured, and of those homes, 68% are underinsured by at least 30%?

protect your home

   Many of these problems originate in the confusion between market value and replacement value. 

  Many base their insurance coverage on the market value of their home. Market value is what a buyer will pay for your property, but this is irrelevant if the damage is destruction. What you should be basing your coverage on is the replacement value. Replacement value is much more complicated to compute. 

  When computing replacement value, you must determine all the costs of rebuilding your home. Rebuilding is often 20-30 percent more than new construction because of the added demolition and removal costs. 

Do you have enough insurance on your house?

 In some cases, it may cost even more to rebuild your home than the market value. In any case, don’t just base your homeowner’s coverage on the lender’s requirements, and these often only cover the mortgage balance leaving you with nothing. 

  • It’s a good idea to insure your home for the cost of rebuilding it. Check your homeowners’ policy to see the maximum amount your insurance company would pay if it had to be rebuilt. 
  • Find out what it would cost to rebuild your home.  Your insurance agent can calculate rebuilding costs for you or you can hire an appraiser (call or email me for references).  Make sure your insurance agent knows about all improvements you’ve made, such as a deck or larger kitchen.  
  • Make sure the value of your policy is keeping up with increases in local building costs.  Many policies include an inflation guard; if yours doesn’t, consider purchasing one. 
  • Find out if you have a “replacement cost” policy for your house. If you own an older home, you may have a “modified replacement cost” policy.
  • For the contents of your home – find out whether you have “replacement cost” or “actual cash value” insurance. 
  • Check the limits on certain personal possessions, such as jewelry. Consider buying an “endorsement” to insure valuables separately. 
Primary Bathroom

Personal note: Three weeks ago, a shower drain in our upstairs primary bathroom leaked water through our central floor living room ceiling and fortunately, my wife and I caught it by noticing a few minor stains on the ceiling. I called my local home and auto insurance agency (27 years with them), and they were great; they arranged for an adjuster to send out a restoration company to assess the damage and eliminate any moisture by installing fans and a dehumidifier on the shower.

hole in our ceiling to repair the water damage by the shower drain
hole in our ceiling to repair the water damage by the shower drain

I called our plumbing company, and they replaced the shower drain and checked things out; $630.00 later, no more leaks! We are responsible for the plumber as it was wear and tear; the damaged ceiling was an accident and was supposed to be under coverage. Now, the fun begins with the adjuster refinishing our ceiling as we have a 24″ by 48″ hole in the ceiling, and because the ceiling is a popcorn ceiling, all the main floor open areas require replacing!

I will keep you informed!

Property Value & real estate market
Ty Lacroix Broker
Ty Lacroix Broker Sutton Group Preferred Realty Inc. Brokerage
The Envelope Real Estate Group
The Envelope Real Estate Group

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and are designed and constantly upgraded with the latest real estate trends, how-tos, and what is for sale on MLS. Our primary focus is guiding home buyers and sellers to make good decisions. We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and boring, but we are dealing with hundreds of thousands of your hard-earned money. Would you rather be happy, excited and bored or unhappy, excited and make a poor choice? About Ty I am a Broker with Sutton Group Preferred Realty Inc., Brokerage and the team leader for The Envelope Real Estate Group, that's enough about me! You see, this is about you, you do not want to hear blah blah stuff about awards, designations, or that we walk older adults across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; success leaves clues!

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