Home insurance is one of those things most homeowners have, but many don't think much about until they need it.
On Episode 4 of Real Estate with Brenda K, I sat down with Shane Kennedy from The Co-operators to discuss some of the most common questions homeowners have about insurance, including what a basic policy covers, why water damage coverage deserves attention, and the importance of understanding your policy before you ever need to make a claim.
Understanding the Basics
One of the first topics we discussed was what a standard home insurance policy typically includes.
According to Shane, a basic policy generally provides coverage for your home, personal belongings, liability protection, and certain environmental risks such as oil-related incidents. It's also the type of coverage lenders require before releasing mortgage funds during a real estate transaction.
While many homeowners focus on obtaining insurance to satisfy their lender's requirements, Shane emphasized the importance of understanding exactly what is and isn't included in a policy.
Not All Water Damage Is the Same
One of the most interesting parts of our conversation focused on water damage coverage.
Shane explained that many homeowners are surprised to learn that water entering a home from outside sources may require additional coverage depending on the policy. Topics such as sewer backup, flooding, storm surge, and overland water were all discussed during the episode.
With severe weather events becoming more common across Nova Scotia in recent years, understanding how your policy addresses water-related claims has become increasingly important.
We also talked about the difference between water damage that originates inside the home, such as burst pipes or appliance leaks, versus water entering from external sources.
The Rising Cost of Claims
Another topic that came up was the increasing cost of insurance claims.
Shane shared that extreme weather events continue to have a significant impact on the insurance industry across Canada. As rebuilding and repair costs increase, insurance companies are facing larger claims than ever before.
This led to a discussion about deductibles, policy options, and some of the ways homeowners can customize coverage based on their individual circumstances.
Replacement Cost vs. Market Value
One area of insurance that often causes confusion is the difference between a home's market value and its replacement cost.
While market value reflects what a buyer may pay for a property, replacement cost focuses on what it would cost to rebuild the home if it were destroyed.
With construction costs rising substantially in recent years, Shane explained why understanding this distinction can be an important part of reviewing a policy.
Protecting Valuable Items
We also discussed personal belongings and some of the items that may require special consideration within a policy.
Jewelry, collectibles, artwork, and other high-value possessions were among the examples discussed during the episode. Shane explained how certain items may require additional documentation or endorsements depending on their value.
The conversation also touched on the importance of keeping records and inventories of valuable belongings.
The Value of Relationships
One theme that came up repeatedly throughout our discussion was the value of having a trusted advisor.
Whether you're reviewing coverage, updating a policy after a move, or navigating a claim, Shane spoke about the importance of understanding your options and having someone available to answer questions when they arise.
As technology continues to change how many services are delivered, he believes personal relationships remain an important part of helping homeowners understand and manage risk.
Watch the Full Episode
If you'd like to hear the full conversation with Shane Kennedy from The Co-operators, you can watch Episode 4 of Real Estate with Brenda K here: Episode 4 - Real Estate with Brenda K
You can also listen to Real Estate with Brenda K on Spotify, Apple Podcasts, and wherever you enjoy your favourite podcasts.
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And remember, when you're thinking real estate in Halifax, think Brenda K