Home insurance covers not only your property, but also your civil liability. For example, if someone is injured at your home or you accidentally set fire to the building where you live, you could be held liable for damages.

Basic home insurance covers the risks listed in your contract. Here are a few examples of risks usually covered by home insurance:

• Fire: You accidentally set fire to the building where you live.
• Theft: A thief makes off with your valuables.
• Civil liability: A guest is injured at your home.
• Certain types of water damage: A pipe bursts and the water damages your floor.

All-risk (or comprehensive) home insurance will cover all risks EXCEPT those that are excluded. Exclusions are indicated in the contract.

Be careful: In some cases, certain property and some risks are excluded from home insurance, whether you’ve chosen basic insurance or all-risk insurance. In other cases, coverage is limited.

Examples of exclusions:

• The pool in your backyard is not covered and must be insured separately by an endorsement (additional coverage).
• A leaky roof or basement and sewer backups are not covered unless you purchased additional protection.
• The consequences of flooding are generally excluded from insurance contracts. However, some insurers may offer coverage for certain types of situations, such as rising water, dam breaks or the overflow from a waterway. It is therefore important to pay close attention to the coverage that your insurer provides for water damage and to shop around, if need be.

Examples of limitations:

• Your basic home insurance may only cover the first $200 in cash. If thieves steal $500, you won’t receive a refund for the full amount.
• Coverage is limited for certain items, such as jewellery, collections and fine arts.

To be protected against risks that are excluded or limited, you must take out additional coverage (endorsements or riders). Even then, some insurers do not cover certain risks such as floods and landslides. Be sure to ask for details about additional coverage.

Check which risks are excluded and which items are subject to limitations. If you have questions, speak with your insurance agent or broker.