‘Home insurance’, an insurance for the assurance of Home, when buying or renting. No one can buy a home without their home insurance, as the Canadian law states. In Home insurance everything is included i.e. Fire, Theft, Home maintenance, Home installments, Home fixtures and fittings. If the Home is on mortgage, apart from the mortgage price, the bearer will have to pay the Home premium as well, every month starting from the date of purchase. It is also a necessity when the home is rented, and RMA/MBBP are the benefits provider, backed by the Associations. A vital element in the ‘Home Economics’.
WHY IS IT NECESSARY?
It is necessary as a ‘Home Insurance’ is a vitality in the Canadian economy, and made essential by the Canadian Govt. It is the role of the Government, along with the bank to provide with the best deal as according to the financial circumstances and the needs of the consumers. As in the consumer’s market, everything is nothing but a product, similarly, home insurance is a necessity, as well as a product, ‘Necessity is the mother of invention’, similarly Home insurance is the necessity of buying a home, as you are the owner of the home, and home must be assured under all circumstances. It is merely because of the risks involved in Canada, and how these risks can hurt or determine a Home insurance policy.
The amount of risks involved in Home insurance is due to the Climatic conditions of Canada that are extreme in most provinces. Threats of bad weather and hazards associated with the weather makes it necessary to highlight the key facts that concerns ‘Home Insurance’. The other risks involved are criminal threats and risk of property, as Canada is a huge land, and the population density is very low. Due to this fact, the people are mainly saturated in urban areas, and these are the areas of high population density. Therefore, it is important to realize that Home insurance is linked highly with the Urban and Rural populations, and these population stats determine how the Home insurance will come into play as well as the premium involved. In Urban areas, the risks to threats are a bit different, and can be on the high side that’s why the insurance is higher.
The Value of the property is a key characteristic in determining the risks involved and various ways to encounter the associated risks. The value of property is mostly at a higher side in urban and sub urban settlements, as compared to those in rural settlements. Also areas of cold weather, and areas prone to earthquakes, and storms, the Home insurances are higher as risks are higher than the property might get damaged or hurt due to these threats associated.
WHO CAN AFFORD
The Home insurance in a highly developed economy is not only affordable by most people, but it is made affordable by most population. The earnings system, i.e. the Role of economy in planning Mortgages and Home insurance, keeps all these factors into key considerations. There are ‘Variances’ involved in the calculative measures for the Home insurance, as obviously according to the value of property, the property tax, the mortgage, and other factors that determine the value of the property.
People in a medium to high income bracket can easily afford Home insurances in Canada, and this is merely because of the strength of the economy, the GDP Per Capita and the property that is on the rise especially in Urban and Sub Urban areas. However, most people keep moving according to their affordability and their life style.
HOW IT IS DIFFERENT WITH OTHER PROPERTY INSURANCES
There are differences in Property and the difference lies in Commercial and Non Commercial. While we talk and discuss about Commercial, we need to know that they are all concerned with business property insurance, and the owners are big companies and brands. Ironically, the insurance is different as it is a commercial property, it is mostly on the high side, as compared to Non Commercial property. ‘Home insurances’ are all concerned with Non Commercial, and the key variables like property tax, mortgage and insurance, all differs. In most towns and cities i.e. urban population, the treatment of insurances are the same. However, as Canada is a huge country Area wise, it can differ in some provinces like Quebec, whose area is huge, as well as very cold and extreme temperatures.
THE ROLE OF RMA/MBBP
The Role of MBE in providing and analyzing insurance consultancies is obviously a key role, as they deal in insurance through MBE insurance, part of the MBE Group of companies. What matters are the factors that determine the insurances, how they are being calculated, and difference from other insurance groups. Factors are significant, as ‘Size matters’, and the size of Canada is huge, as compared to countries in Europe and other countries. The consultancy that is provided by MBE is a move forward in the research involved in Insurance, and the interactions of various insurance groups. Insurance is hence taken as a technical thing, and calculations that are based in this regards are highly technical as well, and involve lots of methodologies. Risk factor is the most important of them. Therefore, there are team of experts and analysts who determine the Home insurance and its various factors.
INTERACTIONS WITH KEY STAKEHOLDERS
Vital interactions with key stakeholder’s holds value for the company especially in Canada, there are many interactions that takes place. The key stakeholders that we need to identify are Banks, business groups, Re-insurers, and Clients. All these entities are the detrimental factor in analyzing the insurances involved, its term and the entities that are linked with the future. For Home insurance, there are Re-insurers that are involved when the insurances for Home insurances that are on a higher side than the average. A Re-insurer company, makes sure that if something happens, the insurance company can bear the costs of the losses in case of damage, fire and other threats. The role of a Re-insurer company e.g. Munich Re is more evident in Commercial insurance, like business property than Non –Commercial. The prices involved in Commercial properties are on a higher side, and sometimes they are too substantial, as they are owned by mega companies and Landlords.