How Much Home Insurance Do Manitobans Need?

September 13, 2021

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If you’re a Manitoba mortgage holder, you probably know you need home insurance. But how much? What’s standard? And which add-ons are truly necessary?

This post will teach you everything you need to know about home insurance in Manitoba, so you can buy, renew, or update your policy with confidence.

The Essentials: Standard Manitoba Home Insurance

Standard home insurance in Manitoba typically covers both your property (any damage or loss affecting your belongings) and liability (any damage, loss, or injury someone suffers while on your property). You’re also covered for vandalism and burglary.

The most common claims covered by standard Manitoba home insurance are:

  • Fire Damage
  • Lightning Damage
  • Water Damage
  • Hail and Wind Damage

Broad vs. Comprehensive Coverage

As a Manitoba homeowner, it’s important for you to know that there are two primary types of home insurance policies: broad and comprehensive. 

A comprehensive policy, also known as a “special” or “all-perils” policy, provides the most coverage. With it, all risks to your home and contents are protected—except for any risks named in your policy as exclusions. Comprehensive policies are always our primary recommendation for our clients.

A broad policy also covers all risks (except for any risks named in your policy as exclusions), but when it comes to your contents, it only covers all named risks. That means that unless a belonging or valuable is specifically written into your policy, it won’t be covered.

FAQ: How Much Insurance Do I Really Need?

As a mortgage holder in Manitoba, your mortgagor will typically require you to have:

  • Fire Coverage
  • Extended Coverages
  • Guaranteed Replacement Cost Coverage

 

This helps them ensure that in the event of a complete or partial loss, they can still get their money back!

Not a mortgage holder? Then there’s no minimum insurance requirement for you!

Home Insurance Considerations

Certain things will impact your home insurance rates and requirements, like:

Home Age

Your coverage needs will change based on the “value of replacement” cost of your home: the cost of rebuilding your home or replacing/repairing any damages. Older homes often require more work and money to fix and replace. Or, they house hard-to-replace features. If your home’s value of replacement cost is above that of average construction, your premium rates will reflect that.

Home Structure

The type of home you own will dictate the level of home insurance you need. A bungalow will have different coverage requirements than a 1.5 story or a 2 story home.

Home Location

Where your home is located can also affect your insurance rates and requirements. For example, if you’re close to a river or on low land, the premiums you pay may be higher than if your property was located elsewhere. And unfortunately, some types of coverage may not be available to you at all.

Possessions & Valuables

With standard home insurance, your possessions and valuables are calculated as a percentage of the value of your dwelling. Typically, they fall into the 60-80% range, but this can change depending on your insurance company.

To give yourself an idea of the value of your belongings, we recommend you do a basic home inventory. 

How To Do A Home Inventory

Start by going through your most expensive items, things like jewelry, furs, and art. Then work your way down to your more common household items, like TVs, furniture, clothing, and appliances. This will give you a ballpark figure you can compare against your dwelling coverage. 

Note: If you own any particularly expensive, rare, or hard-to-find items, we can increase your personal property limits to ensure you have the coverage you need.

Extra Coverage & Home Insurance Add-Ons

Extra coverage options available to Manitobans are:

 

Not every household will need every add-on. Some won’t need any at all. But there are certainly types of additional coverage worth considering and spending a little extra on. We always recommend Service Line Coverage for Manitoba homes within the city limits. Also, Sewer Backup and Overland Water Coverage are very important if your basement is finished or if it houses a lot of items.

Extra Liability Insurance

Liability insurance protects you financially in the event that someone else suffers loss, injury, or damage on your property. The minimum liability insurance allowed for Manitoba homes is $1 million, but it’s best to get $2 million, because you never know what can happen.

It’s best to think about the worst-case scenarios here. For example: If someone were to fall down your stairs and not be able to work for the next 5 years as a result, would your liability insurance cover a claim made against you?

Umbrella Insurance

It’s very rare that you would need Umbrella Insurance—which you can think of as extended liability insurance—on your homeowner’s policy. That said, if the amount of liability coverage available in your standard or extra liability insurance wasn’t enough for your specific situation,  you could add umbrella insurance to cover any difference on a loss.

Home Insurance Policies & Rates

In Manitoba, home insurance rates are primarily based on three things:

  1. Your home’s location
  2. Your insurance history
  3. Any past claims

 

Lower-risk locations and better insurance history tend to positively affect your rates, and having  a positive credit score helps, too. It can give you a preferred rate depending on its strength!

How To Cut Down Your Insurance Premiums

To try and reduce your insurance premiums, you can:

  • Make updates to your plumbing, electrical, roof, and heating
  • Install a monitored alarm in your home to avoid burglary claims
  • Have backwater valves installed to decrease your sewer backup premium

 

Just be sure to let your Insurance Consultant know when you’ve made these updates!

Choosing An Insurance Company

Oftentimes your needs and your budget will dictate the policy you purchase. We recommend you speak with an Insurance Consultant who can help you determine what’s best for your unique needs and situation.

Buying & Updating

Contact your Insurance Consultant about a month before you need to acquire or update your home insurance policy and ask them to look at other companies. That way, they’ll know to compare coverages and prices on your behalf, and they’ll come back to you with your best options. But remember: Just because it’s cheaper somewhere else doesn’t mean it’s better!

Related: Buying A House? Here’s When To Get Home Insurance

Reviewing & Renewing

Once you have your home insurance policy, it’s best practice to review it every year. And if, while you do, you have any questions, just call your Insurance Consultant for guidance and answers.

Get An Online Quote!

We make buying and updating home insurance easier by giving you a quick online quote! Click the button below, complete a brief form, and we’ll send you the info you need to get started.