Cover your assets with the right insurance. You’re not only protecting your home and contents, you’re protecting your financial future and your standard of living. Here are three types of insurance homeowners need to consider.

MORTGAGE INSURANCE

Many Canadians buy their first home with a downpayment of less than 20 per cent. Known as high-ratio mortgages, these transactions legally require mortgage loan insurance.

The premium on your total loan varies from approximately 0.60 per cent to 3.35 per cent depending on the percentage of loan-to-value (generally the greater your downpayment in relation to home’s cost, the lower the mortgage loan insurance premium). Lenders pay the premium and it’s passed on to you; pay it off as a lump sum or add it to your mortgage for monthly payments. Ask your lender for more details on mortgage insurance from Genworth Canada.

You need it if: You’re a buyer who has put less than 20 per cent down on your home.
Don’t give it another thought if: you don’t have a high-ratio mortgage.

HOMEOWNERS’ and CONDO INSURANCE

Homeowners’ insurance covers your property and contents against fire, water damage, theft and other forms of damage. Your insurance covers the cost of repairs, replacement, and certain expenses if you have to temporarily move out as a result of damage/repairs. It also protects you if someone gets injured on your property; if you’re liable, home insurance will pay the damages.

Condo insurance is a similar product geared to the specifics of condo ownership (ie. shared common areas and amenities).

The amount of coverage you select, and optional add-ons, will impact how much you pay in premiums.

You need it if: If you own a house, condo (or cottage).
Don’t give it another thought if: You are not a homeowner.

TENANTS’ INSURANCE

Many first-time buyers help finance their purchase by including a rental unit. If you plan to do this, include a clause in the lease stipulating that tenants must purchase tenants’ insurance (also known as contents insurance). It protects their contents in the event of a break-in, but more importantly to you, as landlord, it covers their liability for property damage caused by their negligence (ie. a fire triggered by a pan left on the stove, flooding caused by an overflowing bathtub). Without insurance, reimbursement costs would come from their pockets—and who wants to take the risk that their tenants may not have those savings on hand?

You need it if: You have tenants (state in the lease it is mandatory). And if you are a tenant reading this article because you are saving for your first home, make sure you are insured, so that an unexpected event doesn’t wipe out your home-saving nest-egg!
Don’t give it another thought if: You do not have tenants and are not a tenant.

  • You’ve been saving money to buy your first home for so long and it’s one of the most significant purchases you’ll make in your life. Here are some tips to ensure you get the most for your money…
  • Review our handy mortgage glossary of common phrases that newbie buyers need to know. Here’s an A-Z guide to the key mortgage speak you’ll be using in the weeks and months to come...
  • Finding the perfect home is no easy feat. And, in many cases it’s the renovations after a purchase that makes all the difference. Here’s how one young couple made their first home, their dream home...
  • When looking to buy your first home, the size of your down payment will help determine which mortgage option is best suited for you.
  • For many people, the hardest part of buying a home is saving enough money for a down payment. The bigger the down payment, the smaller the amount of your mortgage loan. If you've arrived in Canada within the last 36 months or less, you may qualify for Genworth's New To CanadaTM product,…
  • A conventional mortgage in Canada normally requires a down payment of at least 20% of the purchase price. When homebuyers have less than 20% for a down payment, Mortgage Insurance allows them to secure a mortgage for their home purchase.

Achieve the homeownership dream sooner