Comparing the cost of home, condo and renters insurance

Are you looking to insure your home? There are many different types to choose from, depending on your type of dwelling. If you’re buying for a detached house, there’s home insurance. For a condo, there’s condo insurance. For an apartment (or any home your rent), there’s renters insurance.

Depending on which type you need, you’ll wind up paying a different monthly premium. Your premiums will also differ depending on your provider, so it’s always a wise idea to compare insurance prices.

Let’s take a glance at ballpark figures for what you can expect for each type of property insurance.

Home insurance

If you’re buying a home, home insurance is a must. Not only is it well worth the cost, but most lenders won’t approve you for a mortgage without proof of insurance.

Home insurance comes in three main types: basic, broad and comprehensive. Basic is the most affordable, but offers the least amount of coverage. Broad offers more protection than basic, protecting you from a list of additional instances in your policy. Comprehensive offers the highest level of protection, but also comes with the costliest premiums.

For most homeowners, basic or broad is enough. Although the cost of your policy depends on several factors, including your location and property type, Canadians pay on average about $70 per month in home insurance premiums.

Condo insurance

A condo is an affordable entry point for many first-time homebuyers in expensive markets like Toronto and Vancouver. When moving into your new condo, you may assume that you’re already protected by the condo association’s insurance policy, but in most cases that isn’t true. While it usually covers the building’s common areas, it likely won’t protect you if a guest gets hurt or there’s a fire in your unit. That’s why it’s worth getting your own condo insurance to make sure you’re adequately protected.

When shopping for condo insurance, you’ll want to find a policy that protects your belongings and provides liability coverage. As for premiums, condo owners should expect to pay in the neighbourhood of $30 per month.

Renters insurance

If you’re a renter, you may be wondering why you need insurance. If the landlord has home insurance, you’re already protected, right? Actually no. While the landlord’s home may be protected under home insurance, you’ll want to make sure your personal belongings are protected, and the best way to do that is through renters insurance.

Renters insurance provides two major benefits to tenants – it protects your possessions and it protects you from personal liability. Replacing your most expensive belongings – your clothing, electronics and furniture – could set you back a few thousand bucks. To make sure you’re adequately protected, you’ll want to take out renters insurance.

If you plan to entertain guests at your place, it’s equally important to get renters insurance. If a guest were to get hurt while at your property, you could be sued. Renters insurance provides liability coverage, so you won’t be stuck paying out of a pocket for lost wages and medical bills. Renters should expect to pay somewhere between $15 and $20 per month.