Real Estate

Home insurance question?

  • Last Updated:
  • Jul 28th, 2020 10:59 pm
[OP]
Deal Addict
Apr 4, 2017
2037 posts
654 upvotes
Toronto

Home insurance question?

My mortgage is with TD:

Can someone explain what does pay loss mean when buying home insurance?

My lawyer said when I call my home insurance - to also mention to include my TD Bank as first loss payee? @ address mentioned.

I’m little confused and some insurance companies are confused too?
3 replies
Member
May 4, 2010
260 posts
253 upvotes
Ottawa
If your house burns down, the mortgage lender wants the insurance company to pay it before it pays you.
[OP]
Deal Addict
Apr 4, 2017
2037 posts
654 upvotes
Toronto
Oh so let say house burns down - it would pay my morgadge company first and then what ever is left over is worth after comes to me?

How does this gets calculated?

House is laid is 750k and cost 480k to rebuild the house.
Deal Addict
User avatar
Nov 2, 2007
1416 posts
389 upvotes
GVRD
ysl5710 wrote: Oh so let say house burns down - it would pay my morgadge company first and then what ever is left over is worth after comes to me?

How does this gets calculated?

House is laid is 750k and cost 480k to rebuild the house.
In most cases the insurer would provide coverage for the home on a replacement basis (land is not covered by insurance). They would rebuild your home and you would continue paying your mortgage as if nothing happened.

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