Home insurance myth busting
Home insurance. One of the joys of adulthood that most of us are faced with, either as a renter or a home or condo owner. Sometimes it’s difficult to know all the ins and outs of insurance, we get it. And we’re here to help differentiate fact from fiction when it comes to myths about home insurance. Below are a few of the common myths that we’re here to debunk:
MYTH: Home insurance is mandatory.
FACT: In Canada, it's not mandatory to purchase home insurance (unlike car insurance). However, in order to get a mortgage, your mortgage provider may require it and so can a condo board or landlord if you’re a renter. So, while it’s not government regulation, it’s something you will likely have to look into purchasing.
Also, worth noting, even if it’s not required for your living arrangements, purchasing home insurance is highly recommended to protect the things that matter most to you in the event of something happening.
MYTH: Home insurance is expensive.
FACT: Home insurance doesn’t have to be expensive. There are different types of insurance policies that can be put together to make sure you have the right coverage for your needs. With TD Insurance, we offer many different ways you can save on insurance. The best way to get an idea of how much you’ll pay is to get a quote or you can learn about how to choose the best insurance for your home.
MYTH: If you’re away on vacation, your home is covered.
FACT: If you’ve had enough of winter and you’re planning a week down south, no problem – your home is covered. However, if you’re planning on going away and leaving your home unattended for more than seven days – this could affect your coverage.
With TD Insurance, for your home coverage to be valid while you're on vacation, you need someone checking in on your home every seven days to ensure your heating is working and there are no frozen pipes. It’s a good idea to contact your insurance provider if you’re going away to make sure your home is covered for the duration of your travels.
MYTH: As a renter, you are covered by the landlord’s home insurance.
FACT: Your landlord’s insurance covers the building, it does not cover your personal belongings. For example, if a pipe bursts and your belongings are damaged by water, you would typically be responsible to cover the cost to repair or replace them – not your landlord. . Renter’s insurance (which can also be referred to as tenant insurance) is a great way to protect your belongings. It also covers you in the event of something happening (like a fire) and you need to temporarily stay elsewhere by covering any additional and reasonable living expenses incurred.
Here are a few more details about renter’s insurance and why it’s a good idea to get it.
MYTH: Basic coverage will cover all types of water damage.
FACT: Basic home insurance may have some coverage against water damage, depending on the type of home you live in (home, condo, or rental unit), and your eligibility for that type of coverage, but it’s usually recommended to top up your coverage. Here is some more detailed information on water damage coverage and what additional coverage can do for you.
MYTH: Home insurance covers everything inside of your home.
FACT: Insurance isn’t a one size fits all solution. Generally speaking, home insurance covers the physical structure of your home, plus what’s inside. But there are usually limits to that coverage. It’s best to speak to your insurance provider to really understand what you’re covered for.
With TD Insurance, your basic home insurance would cover your home and belongings against loss (with some restrictions), personal liability, plus things like water damage and temporary accommodation. And from there, you can always purchase enhanced coverage which offers more options to make sure you feel better protected in your home.
MYTH: Renovations don’t affect your insurance.
FACT: If one weekend you’re feeling creative and decide to paint your bathroom yellow, it’s not going to affect your home insurance. However, bigger jobs such as finishing a basement, or adding an extension could affect your coverage. Before undertaking any renovations, make sure to contact your insurance provider and check with them.
MYTH: Your condo corporation has insurance, so you don’t need it.
FACT: If you've bought a condo, your condo corporation should have strata insurance, which is a policy that covers the building(s), common areas and common area contents. Though not mandatory (refer back to the first myth on this page), it’s a really good idea for you to purchase your own condo insurance policy, to cover your own belongings, provide personal liability coverage as well as additional coverages for your unit that may not be covered by the policy held by the condo corporation. Want to learn more about condo insurance? Get the details plus learn some helpful related terms worth knowing.
Interested in more myth busting? Find out whether the colour of your car affects your insurance premiums and other common myths about car insurance. Or you can check out Home Insurance 101 or How to Speak Insurance for more information on understanding insurance.