The Need for Home Insurance in Fredericton
Located along the Saint John River, Fredericton is the capital of the province of New Brunswick. The city is also known by its Indigenous name, Wolastoq, and serves as an important provincial centre for art, culture and education. With a population of over 61,500, the city of Fredericton is growing at an annual rate approaching 1%. Homeowners in the area should definitely consider safeguarding their investment with home insurance in Fredericton.
The people of Fredericton enjoy a humid continental climate, bringing brief, warm summers and extended, cold winters. The wetter season in Fredericton lasts from April through January, with each day having over 30% chance of precipitation. January through April is considered the dry season, with only seven days in February averaging more than .04 inches of precipitation.
The median home price in the Fredericton area is $221,766, which is well below the national average of $663,503. Although the city offers great value for the money, the price of a home is a significant investment for most people. Home insurance is a necessity to protect this investment.
Types of Home Insurance in Fredericton
A homeowners insurance policy covers the contents, property and personal liability of the policyholder, plus their spouse and dependents. The policy will also protect other household residents and dependents temporarily dwelling in a separate location. Insurance coverage is typically broken into personal liability and personal property.
Personal Liability
Personal liability coverage protects the homeowner in the case of injury occurring on their property. This coverage also kicks in if the homeowner's actions cause injury or damage to the property of others, regardless of where this occurs. Situations that may be covered by personal liability insurance include the following:
- Bodily injury or property damage to others resulting from homeowner omissions or negligent acts
- Bodily injury or property damage to others caused by the homeowner's pets
- Legal expenses stemming from lawsuits that recover damages covered by the homeowner's policy
Personal Property
Home insurance in Fredericton covers the primary dwelling place, including the primary building and existing outbuildings on the property, such as sheds or detached garages.
Insurance amounts generally correspond to the value of replacement in the event of complete property destruction. The replacement value might be different from the tax assessment value or even the market value. The valuation process may be calculated by the insurance agent, who will take into account the home's age, size, construction type, electrical systems and unique features.
Perils
Home insurance protects the homeowner from perils, which are the accidental and unexpected occurrences that cause damage to property and create a financial hardship to repair.
Perils Covered by Home Insurance in Fredericton
Policies vary according to the needs of the homeowner, but policies in Fredericton generally protect against the following perils:
- Damage to items in transportation (including items being repaired or stored off-premises)
- Electrical currents or explosions
- Impact from aircraft or vehicle
- Falling objects
- Fire or smoke
- Storm damage from wind, lightning, or hail
- Theft, vandalism, or riot damage
- Water damage due to issues with utilities
Perils Generally Not Covered
It is important for the homeowner to completely understand the areas covered on their policy, as there are many situations that are not covered. Excluded perils typically include the following:
- Damage from frozen pipes, which is considered preventable
- Damage from the home's exterior freezing, including destruction from snow and ice
- Damage from earthquakes, landslides and other issues related to the earth's movements
- Damage from insects or rodents
- Damage or losses due to the policyholder's intentional or criminal acts
- Damage due to terrorism or acts of war