Home Insurance in Newfoundland and Labrador

What is home insurance for?

Basic home insurance in Newfoundland can safeguard your home against a wide range of risks, ranging from theft and fires to car crashes, smoke, and more. In essence, when you buy a property insurance policy, you won’t be on the hook for paying for the cost of damages and losses on your own. Instead, you will have the ability to file a home insurance claim and have your insurance provider issue you a payout to help cover the cost of the damage.

Even better, there are all types of home insurance policies available to Newfoundland homeowners. For example, a BrokerLink insurance advisor can help you find vacation property & cottage insurance, condo insurance, tenant insurance, or another type of home insurance. Get in touch with BrokerLink today and describe your home insurance needs. We will do everything we can to meet them.

What is covered by Newfoundland home insurance?

Policies vary between Newfoundland home insurance providers. That said, basic coverage usually includes the following:

Dwelling coverage

Dwelling coverage can pay for you to repair your home if the physical structure of your home is damaged due to a covered peril. The physical structure of your home may include the home’s foundation, walls, doors, windows, and more. If any of this is damaged, so long as it is damaged by a covered peril, such as fire or lightning, you can file a claim with your insurance provider. Further, it is important for first-time home buyers to understand that dwelling coverage usually only pertains to the primary structure, not additional or detached structures on the property. Be sure to check with your insurance broker to better understand exactly what dwelling insurance covers. In the meantime, keep reading to find out what perils are usually covered by dwelling insurance:

• Fire
• Lightning
• Smoke
• Theft
• Wind
• Car / aircraft impact
• Explosion
• Falling objects

Content(s) coverage

Contents coverage is another basic tenet of Newfoundland home insurance. It is important to add both dwelling coverage and contents coverage to your policy because they complement one another. While dwelling coverage is designed to pay for damages to the physical structure of your home, contents coverage can pay for damages to personal belongings in your home. Personal belongings could include furniture, clothing, electronics, sporting equipment, and more. If you have lots of valuable items inside your home or even specific items that are extremely high in value, you may want to consider purchasing a separate rider for that item or buying high value home insurance coverage. It is also worth noting that contents coverage only covers items that were damaged or lost due to an insured peril, as with dwelling coverage. Contents' coverage perils are often similar, such as fire, theft, and smoke.

Personal liability coverage

Personal liability coverage is the only type of liability coverage on this list, which is what makes it so important. With this type of coverage added to your Newfoundland home insurance policy, you can file an insurance claim if a third party files a lawsuit against you. For example, if someone is injured on your property or their personal property is damaged, they could sue you. Thankfully, with third party liability coverage, your provider will compensate you for the related costs of the claim. These costs may include medical expenses, legal fees, repair bills, and more.

Enhanced coverage for Newfoundland homeowners

Now that you know what basic home insurance in Newfoundland looks like, let’s dive into the world of enhanced coverage. Enhanced property insurance is when you add extra forms of protection to your policy. Extra protection can look like a lot of different coverages. For example, it may include Airbnb or accommodation insurance, home renovations insurance, home business coverage, overland water coverage, and more. To learn more about some of the most popular types of extra protection for Newfoundland homeowners, keep reading:

Home business coverage

Home business coverage might be important if you operate a business out of your home or if you are an employee who works from home regularly. Since basic home insurance does not cover damage caused by business use of the home, you will need to add home based business coverage to your policy if you want to be protected against business-related risks. Generally speaking, if you run a business out of your Newfoundland home, have business inventory or equipment stored in your home, or have clients visiting your home regularly, purchasing home business coverage is a smart idea.

Equipment breakdown coverage

Equipment breakdown coverage can protect you if a piece of household equipment suffers an internal failure and breaks down. Whether a professional can repair it or it needs to be replaced altogether, you can file an insurance claim under the equipment breakdown coverage portion of your policy and receive a payout to help cover the costs. Please note that this coverage will only kick in if the cause of the breakdown is an internal failure, such as a mechanical or electrical failure. It will not cover damage due to the general wear and tear of equipment. Further, speak with a BrokerLink insurance advisor to find out exactly what types of household equipment can be covered, though most of the time, it includes dishwashers, refrigerators, ovens, dryers, furnaces, air conditioners, and more.

Sewer backup coverage

If you want to be financially secure in the event that a sewer backup damages your home, then you need to add sewer backup coverage to your Newfoundland home insurance plan. With this type of coverage, your insurance provider can help pay for any damage to your home or belongings that is caused by a sewer backup. Although adding this type of coverage to your plan can result in a higher premium, you can also install a sewer backup detection device to offset this cost. When you install this type of device or a sump pump, you will not only be taking a step to prevent flooding and sewer backup but you may also qualify for a Newfoundland home insurance discount.

Overland water coverage

A second way to protect your home from water damage is with overland water coverage. This type of flood coverage works a little differently than sewer backup coverage. Unlike the latter, it doesn’t cover water damage caused by sewer backups. Rather, it only covers water damage caused by a nearby lake/river, overflow, heavy rain, or rapid snow melt. So if you live near a major body of water in Newfoundland, adding this type of coverage to your homeowner’s insurance plan might be a wise choice.

Factors that impact Newfoundland property insurance premiums

There are a number of factors that impact Newfoundland property insurance premiums. All of these will be considered when an insurance agent is calculating your risk and assigning you a premium. From the age of your home to the condition of its roof, many details matter. Before requesting a free home insurance quote from BrokerLink, keep reading to learn which factors an insurance company will consider when determining your Newfoundland home insurance rates:

• How valuable your home is
• How safe and desirable your neighbourhood is
• How close your home is located to emergency services
• The age and condition of the roof on your home
• The type, age, and condition of the heating system that your Newfoundland home uses older systems like oil tanks or wood stoves may lead to higher premiums
• The type, age, and condition of the electrical system in your Newfoundland home
• The type, age, and condition of the plumbing system in your Newfoundland home
• Whether your Newfoundland home is equipped with a security system, and if so, what type of system it has
• If there are any additional or detached structures on your property that need to be insured

Tips to lower your Newfoundland home insurance rates

Like most customers, you probably want to do everything you can to keep your home insurance rates low and avoid an insurance premium increase in the future. The BrokerLink Newfoundland team is here to help you do just that. To get started, read the tips below and save on property insurance coverage today.

Review and modify your Newfoundland home insurance policy on a yearly basis

Reviewing your Newfoundland home insurance plan at least once a year and making changes as necessary is one tip to help you save money on your policy. The truth is that many customers have more home insurance coverage than they need. They might also have higher limits or lower deductibles than they need. You can save money on home insurance by updating your policy and renewing coverage, lowering limits, or raising deductibles. Plus, changing house insurance is a lot easier than you might think, and a broker can help you every step of the way. A great time to review and modify your policy is before it is up for renewal, so get in touch with a BrokerLink insurance advisor before your plan expires.

Install a monitored alarm system in your Newfoundland home

Insurance companies like to see that policyholders take home security seriously, and one way to show this is by installing a monitored alarm system in your Newfoundland home. You may be surprised to learn that many insurance companies offer a home insurance discount for a home alarm system. This is because they make your home safer and reduce the odds of theft or a break-in. Just make sure that the type of monitored alarm system in your home qualifies for a discount. Further, alarm discounts vary since some systems are more advanced than others.

Bundle your home and car insurance coverage in Newfoundland

Bundling home and auto policies is a surefire way to qualify for an insurance discount at many Newfoundland insurance companies. So, if you want to reduce your premium, consider purchasing a bundle or package that includes two or more types of insurance. Not all types of insurance may qualify, but home, car, and recreational vehicle insurance typically do. Plus, if you bundle your Newfoundland home and auto policies, you will only have one policy expiration date to keep track of.

Raise your Newfoundland home insurance deductible

Premiums and deductibles depend on each other. This means that the deductible you choose for your Newfoundland home insurance plan will directly impact how much you pay for your premium. If you want to lower your home insurance costs, experts recommend picking a higher deductible. A high home insurance deductible is a quick way to lower your premium. However, be warned that it will result in more money you have to pay in case of a claim on your policy.

Install solar panels on the roof of your home

Many Newfoundland insurance companies now offer discounts to policyholders who install solar panels on their homes. This is a way to incentivize others to do the same since solar panels reduce energy consumption, lowering a customer’s carbon footprint. You may also receive a discount if you take other energy-saving steps.

Install a sewer backup prevention device or sump pump on your property

Another type of home insurance discount that you may be eligible for in Newfoundland is a sump pump or sewer backup prevention device discount. Since installing this type of device is another safety precaution that you would be taking as a policyholder, an insurance company may reward you with a discount. These types of devices can help reduce the odds of water damage in your home.

Don’t miss any home insurance payment deadlines

Whatever you do, if you want to keep your rates low, then do not miss your insurance payment deadlines. Making late or missing payments is a surefire way to increase your rates or cancel your policy. Cancelled insurance policies almost always result in more expensive premiums down the road. So do whatever you can to make all home insurance payments by the deadline, whether you have a monthly deadline or a yearly deadline.

We’re in your community

BrokerLink is a customer-first insurance brokerage. This means that we specialize in customized insurance policies for all Newfoundland residents. No matter what kind of coverage you’re looking for, we will match you with a plan that aligns with your needs and budget. Learn more about what makes BrokerLink the go-to insurance brokerage in Newfoundland by calling us today.

Contact us

At Newfoundland BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, travel plans, recreational items, or pets, let us help you find the best coverage possible.

You can reach us by phone, email, or visit any of our locations across Newfoundland and Labrador. No matter how you contact us, a BrokerLink insurance advisor will gladly assist you. We also encourage you to take advantage of our free online quote tool to provide a competitive quote in minutes.

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Newfoundland property insurance FAQs

Do I need to buy home insurance in Newfoundland?

Newfoundland home insurance is not a government requirement. This means that you are not legally required to purchase it. That said, many homeowners still feel that it is a necessity due to the protection it provides. In addition, some residents of Newfoundland are obligated to purchase it through contractual agreements with mortgage lenders or landlords who may require it. For example, many landlords require renters to buy tenant and renters insurance policies. You will need to read through the terms of your lease agreement to find out if you are under a contractual obligation to purchase home insurance.

What can I do to avoid a fire in my Newfoundland home?

Fire safety is a topic that many Newfoundland homeowners want to know about, mainly because of the havoc that a fire can wreak on a home. A few of the main ways that you can avoid a fire in your home are by installing a fire extinguisher on every floor, making sure that all smoke detectors and carbon monoxide detectors are in working order and replacing the batteries as needed, having your chimney inspected annually if applicable, and never leaving open flames unattended.

What doesn’t Newfoundland property insurance cover?

Newfoundland property insurance does not cover everything. For example, you should never expect your policy to cover intentional damage or damage caused by neglecting your home. Policies also do not cover damage due to wear and tear. Further, unless you specifically add coverage to your policy that protects against these risks, basic Newfoundland homeowner’s insurance will not cover damage caused by home renovations, damage that occurs while your home is empty or rented, business-related damage, and damage due to flooding or water.

If you have any questions, contact one of our local branches.