Home & Garden

Home Insurance payout option, worth the premium?

  • Last Updated:
  • Jul 23rd, 2021 11:11 pm
[OP]
Deal Fanatic
Jul 7, 2017
9166 posts
4688 upvotes
SW corner of the cou…

Home Insurance payout option, worth the premium?

TD's home insurance has this optional feature that came up within the past year called Settle Your Way where you can take a cash settlement in lieu of having your house rebuilt.

The most likely scenario where we would take the settlement is in case of a disaster such a forest fire (less likely but possible - that ravages the conifer-forested neighbourhood) or an earthquake (very possible as major earthquakes have occurred in the region numerous times in the past millennia every 300-500 years.) Right now with the building boom, construction costs and wait times are already high and long respectively. I hate to think how much they'd both increase if many structures are damaged or destroyed. It could take years to rebuild.

Just wondering what you think of this as an option. For me, the premium is $89.
I smile when I see container ships sailing past my house laden with stuff made in China
2 replies
Jr. Member
Apr 8, 2013
183 posts
84 upvotes
Toronto
$89 for the cash settlement option seems pricy. It's a good option though. I'd look at other insurance companies to see if they offer the same option at a lower price.
Deal Expert
Aug 2, 2001
18279 posts
9498 upvotes
We were able to receive a cash settlement on a large claim at 100% value. It allowed us to do the work we were comfortable with (repainting a fence, changing light fixtures, etc.) and to pick our own contractors/materials/upgrades on the parts you want to have done by someone else.

We did not have to pay extra for this on our policy so cannot say if this is worth $89/yr. But it can definitely be helpful for large claims (our was weather related, over $25K).

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