Home Insurance 101
Are you new to insurance? Here are a few tips to help you get started.
Let’s start at the beginning.
Home insurance is designed to cover the expenses that come up if something unexpected or accidental happens (like a fire or break-in) to your home and your belongings. It also protects you if you accidentally injure someone or damage someone else’s property.
TD Insurance tailors home insurance packages for homeowners, condo owners, and renters.
Home insurance is not mandatory but highly recommended.
Your home is possibly the largest purchase you will ever make. Home insurance is meant to protect your home and your valuable possessions from unexpected and accidental incidents.
It also protects you from liability. For example, if someone were to slip and fall on your property, and then as a result needed to take some time off work, your home insurance would help you cover the cost of those expenses up to a specified amount.
Next you need to understand a few basic terms:
- All-Risk insures your building and contents for losses due to the widest range of perils (or risks), unless specifically excluded from your policy like intentional damage
- Personal Liability insurance protects you for unintentionally injuring someone or damaging their property and have to pay damages (example: someone has a slip and fall on your walkway, breaks his/her leg and now cannot work for a period of time)
- Contents Insurance covers your belongings (including when you travel) for losses resulting from the most common types of perils (or risks) up to a specified amount
- Replacement Cost Coverage means that the contents of your home are insured for the amount it costs to replace them without depreciation
- Detached Private Structure refers to a structure that exists on your property that is not connected to your primary residence (example: a detached garage or shed)
- Additional Living Expenses Coverage will help you pay for reasonable and necessary expenses (like hotel and food costs) in the situation you are forced to leave your home following an insured peril (or risk) for a period of time
Find the home insurance coverage that best fits your needs