Why Should I Have Home Insurance?

Home Insurance Policy File

Our Insurance expert, Nicole, shares her thoughts on the importance of holding an insurance policy.

Whenever someone asks me about the importance of insurance, a story always comes to mind.

When I first started in insurance, I was training with a group. One woman, when asked about her understanding and history with insurance, related a story that still resonates with me today.

She was a single mom raising her daughter alone when the apartment they were living in was destroyed by a fire, taking all their possessions with them. She had no insurance at the time! So not only was she having to deal with the loss of everything and trying to find somewhere to stay for herself and her daughter, now she had to start replacing all of their belongings. When all was said and done it cost her roughly $40,000 to replace the furniture, clothes, dishes, etc. for the two of them. This was 10 years ago; in today's costs it could be even more.

Something to Think About

This always prompts me to ask someone: what would you do if you had to put out that kind of money just to get back to where you were prior to a fire? Where would that money come from? Your savings? Your retirement fund? Family? The bank? Rely on the kindness and generosity of the community?

Is it worth the monthly or annual payment to know that, if you were in that situation, someone else would handle the financial end of things?

Final Notes

This type of situation is exactly what insurance is for – to help you get back to where you were before disaster struck. Yes, you pay into something year after year and hope to never use it, but when or if you do need it, there is somewhere to turn!

Home insurance is a key requirement for your mortgage. The Auxilium Team is happy to provide you with a referral to our trusted partners for a consultation and quote.

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Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.