Buying a new home is not only exciting, it results in one of the most significant debt obligations most Canadians ever take on. It is also a key life event that requires a thorough review of your personal financial plan, including your insurance needs.
Buying a new home comes with many additional expenses, so it’s easy to lose sight of what is critical and what isn’t. Many new homeowners may not understand the risk of going without mortgage or home insurance for example, but they may want to consider taking these costs into account when reviewing their finances.
Here are a few tips new homeowners should keep in mind:
- Assess your debts – The purchase of a new home should include a full assessment of your insurance needs. Will there be sufficient income to cover loans, credit card balances and mortgages payments if you or your partner become ill or disabled?
- Protect your home – Mortgage insurance can prevent your family from being burdened by an outstanding mortgage by paying off or reducing your mortgage balance in the event of death or disability.
- Bundle your home and auto insurance policies – Purchasing your home and auto insurance policies from the same insurer may result in additional savings.
- Update your home insurance policy if you decide to renovate – Home renovations can significantly increase the value of your home, so it’s important to protect that investment and update your policy to reflect the current value.
For more information on home or auto insurance go to www.rbcinsurance.com or visit a local RBC Insurance branch.