Home insurance

Single Limit

This provides a single maximum amount of coverage for the property and belongings. In the event of a claim, the insurance company will pay up to the maximum regardless of the coverage used. This is helpful when you have one coverage that costs more than the other to repair or replace.

Dwelling Limit 

This is also known as ‘Coverage A’ on a home insurance policy. The amount shown is the maximum that your insurance provider will pay to rebuild or repair your home for a covered claim. The dwelling refers to the structure of your home, including those attached to it such as a garage or deck.

Personal Property Limit

This is also known as ‘Coverage C’ on a property insurance policy. The amount shown is the maximum that your insurance provider will pay to repair or replace your belongings for a covered claim. Personal property refers to the contents of your home such as appliances, furniture, jewellery, clothes, art, etc. 

Additional Living Expenses

This is also known as ‘Coverage D’ on a property insurance policy. This  helps with the cost of temporary accommodations and living expenses if you need to leave your home if it is unlivable due to damage caused by an insured event, or if you are under a mass evacuation order.

Guaranteed Replacement Cost (GRC)

This refers to the amount that a policy will pay in the event of a claim. GRC pays to repair or rebuild your home to its original state, regardless of the cost, even if it exceeds the limit stated on the policy.

Replacement Cost (RC)

This refers to the amount that a policy will pay in the event of the claim. RC pays to buy a brand new item that’s similar to the one that was lost or damaged. It doesn’t subtract for age and wear and tear so that you can replace the damaged item with a new one of like kind and quality.

Actual Cash Value (ACV)

This refers to the amount that a policy will pay in the event of the claim. ACV pays based on the value of the item at the time it was lost or damaged. It considers age, condition and wear and tear so that it pays you the value of the item today, and not what it cost when you bought it or the cost to buy a new one. 

Umbrella Policy

This is a type of policy that you can purchase under your home insurance policy to increase your legal liability coverage. If you are found liable for an injury or accident, court awards can be hefty and your auto or home policy may not be enough – this is where an umbrella policy helps to fill that gap.

Seepage

This is a slow flow of water that passes through porous material or an opening such as the basement walls or windows over an extended period of time. Any damage to your home caused by seepage is not covered by your policy.

Water Damage

This is defined as damage to your property caused by the sudden or accidental escape of water such as a burst pipe, an overflow from an appliance or a water main break.