What is Home Insurance?
Owning a home may be your biggest investment, which is why it’s important to protect your property and your belongings.
If you’re new to home insurance, you might be surprised by how valuable this coverage can be for your home and your budget.
Home Insurance Explained
Home insurance covers expenses that occur when something unexpected or accidental happens to your home and your belongings. It can also come to the rescue if someone injures themselves on your property or if you damage someone else's property or accidentally injure someone.
If you have this coverage, it can protect you from having to pay a large amount at once if something happens to or in your home. Home insurance isn’t mandated by law, but we strongly recommend it, so you're not left vulnerable to unexpected future costs.
Let’s take a look at what you’re generally covered for. Home insurance provides financial protection against losses due to theft, fire, wind damage and much more. Standard policies include coverage for the structure of your home, coverage for your personal belongings, liability protection, and coverage for Additional Living Expenses (if you’re unable to live in your home while it's being repaired due to a covered loss).
In addition to the above, most policies allow you to add extra coverages, ensuring your policy can be customized to meet your unique needs. Some examples of add-on coverage include, earthquake, identify theft and damage due to water entering your home from the outside.
What’s not covered?
While coverage varies from policy to policy, it’s hard to determine the exact extent of what may not be covered. Most policies are comprehensive in nature, meaning that everything is covered except for the list of exclusions/exceptions. You should always check your policy carefully to understand these exclusions and whether there is an option to buy coverage back through an add-on. If in doubt, talk to your insurance provider to get the information you need.
Some exclusions are outright, where coverage cannot be added back. In these cases, you would be responsible for covering these losses yourself. These exclusions are common to most insurance companies and typically include, wear and tear, damage caused by pests, such as rodents or insects, and acts of terrorism, to name a few.
Your policy is also likely to contain specific dollar limits and possible coverage restrictions on certain categories of items, such as jewellery or wine. If you have belongings of particularly high-value, you should check these limits and restrictions to ensure you're properly covered. In many cases, you can purchase additional coverage if needed. Check out our Personal Valuables Coverage to learn more.
Choosing the coverage that’s right for you.
It can be difficult to find the right coverage, since there is no one solution that fits all. At TD Insurance, we're here to help you find the coverage that's right for you.
Terms Worth Knowing
There are a lot of terms that are used in insurance that you might not be familiar with. Don’t worry, we’ve got you covered. Visit our helpful glossary that explains what these frequently used terms really mean.
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