Is property insurance absolutely necessary

Member since 05 August 2021

SamuelalmedaNew member13 August 2021 07:18:26

Hello there! Currently, I'm based in the United States. I've been offered a job to move to Canada. I'm in the process of purchasing a new home in Ontario. Very recently I came to that we must take property insurance when we purchase a new house. Is that true? I didn't know about it before. When I was looking for additional information about this, I came across an Ontario-based insurance business that specializes in property insurance. Orr Insurance and Investment was their name. Are they well known? Is property insurance absolutely necessary? If so, please inform me as well as recommend an insurance firm that provides the greatest service.

Clemkonan New member

Member since 28 January 2021

ClemkonanNew member13 August 2021 16:37:57

For starters if you are buying a house the bank or lender wants to make sure that their investment is protected and that they are first in line to be compensated if something goes wrong so you need mortgage insurance. With that understood the city you live in also wants to collect money off that property to pay for schools, snow removal, roads etc so they will levy property taxes typically $4000-$6000 per year payable with the mortgage or quarterly. So the two terms are mortgage insurance and property taxes. They will also charge you something called a land transfer tax a charge on the land the house sits on. Is this unique to Canada ? I do not think so. Typically however home ownership is cheaper in the USA.