My basement flooded. Five reasons why home insurance is so important
It was the Friday night of the August long weekend and I was all ready to step out the door for the start of my summer holidays when I surprisingly stepped in to a large puddle of water… in my basement. Looking further, I discovered that my three-year-old hot water tank had been leaking and had deposited about 3 inches of water in the furnace room and surrounding finished bedrooms and living area. The damage was extensive: the laminate, carpet, drywall, and baseboard were all water-soaked and if not remediated properly there was a high probability that I would have long-term mold issues. Luckily, I had home insurance. That night I called the plumber and the next day I called the insurance company.
As a financial literacy professional, I know there are many benefits to purchasing home insurance. Home insurance:
- Helps protect your home and the contents in case of theft, loss or damage to the inside and/or outside of your home or property. In my case, I was very surprised at the amount of damage caused to my home by a seemingly “small” water leak. It adds up pretty fast.
- May cover additional living expenses if you are unable to live in your home. While I was fortunate that the damage sustained was to the lower level of my house, in the case of a house fire, you and your family may have to stay in a hotel for an extended period of time while the repairs are being taken care of.
- Protects you against liability claims. Heaven forbid one of my parents were to slip – on the ice covered sidewalk that I should have cleared – and breaks their leg.
- May be required by the mortgage lender so that you can buy the home of your dreams.
- Will give you peace of mind. Having home insurance may help you (and in my case my furry four- legged) sleep at night knowing the largest purchase I have ever made is well protected.
I am pleased to report that the process unfolded quickly and seamlessly. Without home insurance, the cost and aggravation of undertaking a clean up of this magnitude would have been beyond me. Before I knew it, I had my basement back in the order that it had been before the leak, which further reinforced just why I have insurance.
Founder and Project Coordinator, MoneySmart Manitoba
Manager, Education & Communications, Manitoba Financial Services Agency
Thank you for reaching out to MoneySmart Manitoba. Coverage differs from policy to policy. You would need to review you your policy to see what is covered. Feel free to reach out with any other questions you have.
Does this cover sewer backup and overland flooding?