As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.
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So, what is broad form property insurance? Here, we’re breaking down what it covers, who it’s for, and if you need it.
Hey there, responsible property owner. 👋
You probably landed on this page while trying to figure out which kind of property insurance is right for you.
Unfortunately, it’s not a cut and dry answer.
This is because there are several kinds of property insurance that you can get.
They include comprehensive, broad form, and named perils – but how do you know which one is the right fit?
In this post, we’re doing a deep dive into broad form property insurance.
That way, you can decide if it’s the best type of insurance coverage for your property.
Without further ado, here’s everything you need to know about broad form property insurance as a home buyer, in three minutes or less. 😉
Jump ahead to find what you need:
- What is broad form property insurance?
- What are the categories of property insurance?
- What does broad form property insurance not cover?
- Do I need broad form property insurance?
- How much is broad form property insurance?
- Broad form vs. comprehensive insurance
What is broad form property insurance?
Broad form property insurance is a type of insurance coverage that can be a good mid-range option in terms of coverage and cost.
So, what does broad form property insurance cover?
To give you a quick summary, broad form property insurance covers:
- The buildings on the property (ex: house, garage, shed).
- Named perils: The risks that you specifically list in your policy.
And while we’re covering the basics, here’s what the terms “named perils” and “all perils” mean in property insurance:
- “A named perils insurance policy covers only what is specifically noted in the policy.”
- “An all-risk policy covers everything except the types of events that are specifically excluded in the policy.” -via Excel Insurance Group
This is an important distinction when choosing the type of insurance that’s right for you.
Each property is different, so the best way to know how broad form property insurance applies to you is to give your broker at KBD a call.
What are the categories of property insurance?
Whether you want more or less insurance coverage, the three other property insurance coverage packages include:
- Comprehensive: This covers both your buildings and the contents inside. Comprehensive insurance excludes groundwater and earthquake coverage (those are add-ons).
- Broad form: With broad form property insurance, you get comprehensive coverage on the building, while your contents (aka: belongings) are covered on a named perils basis.
- Named perils: This is budget home insurance that certain property insurers offer. It’s designed for properties that don’t fit the usual standards of insurance. With this insurance you’d be excluded from coverage against theft, for example.
If you have broad form property insurance, you’ll be covered for all perils, except those that are specifically excluded in your policy.
Ready for a home insurance quote? Give us a call.
What does broad form property insurance not cover?
Broad form property insurance does not cover specific exclusions, so make sure to understand which ones apply to you.
Common exclusions on broad form property insurance include:
- Personal property related to business
- Personal property of roommates
- Personal property that’s kept at a location other than the one you’ve declared
If you’re not totally sure of what your policy covers, make sure to give your broker a call.
That way you won’t get any surprises in the event that you have to make a claim.
Do I need broad form property insurance?
Broad form insurance can be a good option for property owners who don’t have a lot of valuables inside their buildings.
For example, broad form insurance could make sense for people who own rental properties.
In this case, the broad form insurance would cover the building itself, and your tenant would have to purchase rental insurance in order to cover their furniture, clothes, and other personal belongings.
In the case that you provide appliances, you could specifically include those in your broad form insurance policy.
Your insurance broker can advise you on whether comprehensive, broad, or named perils property insurance would be best for you.
Give us a call.
How much is broad form property insurance?
Price-wise, broad form property insurance falls between comprehensive and named perils price points.
It can be a good option if you don’t want to pay the high premium for comprehensive insurance, but still want a thorough range of coverage.
Since every property insurance premium is determined on a case by case basis, the best way to get an accurate estimate is to get a quote.
What is the difference between broad form vs. comprehensive home insurance?
The difference between comprehensive and broad form property insurance comes down to contents coverage.
Both insurance packages cover the buildings on your property under a comprehensive form.
To reiterate, that means that you’re covered for everything, unless it’s specifically listed as an exclusion.
However, comprehensive home insurance covers your contents (belongings inside the home) based on an all perils agreement.
On the other hand, broad form property insurance only covers your contents on a named perils basis.
Still have questions? Give your broker a call and they’ll point you in the right direction.
Wrap-up
So there you have it.
Broad form property insurance is a type of home insurance that covers the buildings on your property, including your house, shed, and garage.
It doesn’t cover specific perils, like wear and tear, age-related damages, or the contents inside your home.
So broad form property insurance makes sense for people who own homes, but don’t have a lot of valuables to insure within the home.
Homeowners who do have a lot of contents to insure may want to consider comprehensive property insurance.
Not sure which home insurance is right for you? Give us a call.