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How New Home Buyers Protect their Investments
Mar 12, 2014
New homebuyers need protection. A home is one of the biggest investments you’ll ever make and you’ll want to maximize its return over time. Figuring out how to fully protect it can be difficult. But there are a few essential steps you can take in order to give your home the protection it needs.
Homeowners’ insurance is a valuable purchase to protect your investment. It gives you the financial coverage needed related to any physical damage to your home. This includes theft, vandalism, explosions, or fire.
When taking out a homeowners’ insurance policy, it’s necessary to estimate the replacement cost of your home. Coverage for replacement should correspond with the cost required to rebuild your home at current construction rates.
Homeowners’ insurance also covers any lost personal property. In the case of theft or damage, your furniture, appliances, and valuables will be protected with a strong insurance policy.
If any injury or death occurs on your property, your policy will also protect you from any liability. This can be critical in any case of a worker or guest being injured while at your home.
The Ontario New Home Warranties Plan Act regulations made it mandatory for builders to provide homebuyers with a 2-5-10-warranty policy. This warranty is provided by approved insurance companies and gives homeowners valuable coverage:
- 2 years’ on labour and material – Includes 12 months protection against material defects and labour and 24 months for material defects and home systems such as plumbing, electrical, and heating.
- 5 years’ on the building envelope
- 10 years on the physical structure
The warranty also covers any issues related to normal use. Warranties can be obtained with a new mortgage or anytime you renew or refinance your current one.
Schedule Regular Maintenance and Repair
Real investment protection comes from active maintenance of your property. New homeowners should schedule regular repairs and maintenance to keep their homes in quality condition. For many warranty clams, it’s required that you perform routine maintenance throughout each year.
Seasonal maintenence on your home will ensure that every aspect of your property is covered. Checking your furnace and boiler during the winter, while maintaining your roof and patio in the summer adds another layer of protection to your property investment.
For new homebuyers, protecting your property will maximize the value of your investment. Homeowners insurance and warranties can give your property optimal protection in the face of damage, injury, and regular wear from use.
Having the right policies in place alongside a consistent maintenance and repair program will protect the value of your biggest investment.