What Details Do I Provide When Getting Home Insurance?
When you're getting home insurance, you need to be prepared to provide quite a lot of information about your home, your insurance history, and you. Insurance companies need to assess the risk of insuring your property.
Insurance companies may also ask about your mortgage and any home equity lines of credit. Be prepared for any and all questions.
Did you know? In Canada, insurers must obtain your explicit consent before conducting a credit check. Insurance companies may also use a soft credit check to give you a home insurance quote. A soft credit check for a home insurance quote doesn't affect your credit score but you also have to give your consent.
Information you'll likely be asked for when applying for home insurance:
Personal information:
- Your full name, date of birth, and contact information.
- Your social insurance number (in some cases).
- Your marital status.
- Your insurance history, including any previous claims.
Property details:
- The address of the property.
- The year the home was built.
- The square footage and layout of the home.
- The type of construction (e.g., brick, wood).
- The type and age of the roof.
- Details about the heating, electrical, and plumbing systems.
- Information about any renovations or upgrades.
- Details about any detached structures (e.g., garages, sheds).
- Security and safety features (e.g., alarm systems, smoke detectors).
- The distance to the nearest fire hydrant and fire station.
- Coverage preferences:
- The desired coverage amount for your home and personal belongings.
- Liability coverage requirements.
- Any additional coverage you may need (e.g., for valuable items).
- Financial information:
- If you have a mortgage, the lender's information.
- Information regarding any home equity lines of credit.
Soft credit checks
Insurance companies often use soft credit checks to assess your financial stability.
A soft credit check:
- Does not affect your credit score.
- Allows insurers to evaluate your risk level.
- It is a common practice in the insurance industry.
Should you consent?
- In most cases, yes. Refusing a soft credit check might limit your options or result in higher premiums.
- Insurance companies use this information as one factor among many to determine your risk profile.
- It is normal practice in the insurance industry.
What information is asked when I want a home insurance quote?
When you want a home insurance quote, typically your name, address, city/town, province or territory, postal code, email, phone number, and your insurance needs will be asked. You will also be asked if you consent to a soft credit check.
Where can I get a free online home insurance quote?
Western Financial Group can give you a free online home insurance quote for your home within minutes.
Key considerations:
- Be prepared to provide accurate and detailed information.
- Gather any relevant documents beforehand to streamline the process.
- Don't hesitate to ask questions if you're unsure about anything.
Should I get the cheapest home insurance?
As a homeowner, you need to consider your risk tolerance when you are choosing home insurance. If you choose the minimum home insurance at the cheapest price, you need to consider if you would have enough money on your own to replace everything in the event of a fire, for example.
Final thoughts
By understanding what information you'll need and how it's used, you can make the process of getting home insurance much smoother.
