(NC) – While the majority of Canadians review their insurance policies at least once a year, according to the State of Insurance Report, an annual report commissioned by TD Insurance, 52% of Canadians wouldn’t ask their insurance provider to clarify details they don’t understand on their policy.
Dave Minor, a vice president at TD Insurance, provides examples of common questions from Canadians on their insurance policies in an effort to help them become more familiar with their coverage:
• I bought an antique dining room table and chairs, but it was damaged when my toilet water supply valve burst last month. Will I receive the full amount I paid for the set from my insurer? Replacement value ensures the contents of your home are insured for the amount it would cost to replace them today. However, a standard home policy only covers actual cash value – what you would pay for a similar item at today’s costs, less depreciation. Double check your home insurance policy to determine which type of coverage you currently have for the contents of your home.
• I just bought my first house. How do I meet my mortgage payments if something happens to me? Mortgage life insurance pays the balance of your mortgage if any of the borrowers who are insured pass away, so loved ones are not left with the debt. Term life insurance is another option. This type of policy provides coverage for a lump sum amount for a set number of years at which time it is renewable for a subsequent term. Both of these approaches are low-cost options that will protect your home and family.