Home & Garden

TD vs RBC Home Insurance

  • Last Updated:
  • Apr 15th, 2021 11:06 am
[OP]
Newbie
Mar 6, 2021
31 posts
36 upvotes

TD vs RBC Home Insurance

Hi Everyone, I purchased my first home and I'm currently shopping for home insurance.
I looked through the forums and I couldn't find any updated/recent info so I was hoping to start a new thread.
It shouldn't matter for the questions I'm asking below. But the quotes were for a 2,500sqft detached home in Stouffville, Ontario.

I went through 2 brokers so far and the quote for the premium was $1,700 - $1,800 annually. Their cheapest rate came from CAA.

TD insurance quoted me $1,163/year.
RBC insurance quoted me $1,141/year.

All quotes were the same:
$2,000,000 Liability
$1,000 deductible
Inclusion of $10,000 for high value items (i.e. jewelry)

Differences:
TD includes claim forgiveness.
TD was quoted with $50,000 extended water coverage (includes sewer backup and overland water coverage) with $2,500 deductible.
RBC can bump personal liability from $2,000,000 up to $4,000,000 for less than $0.50/year.
RBC was quoted with sewer backup up to policy limit and overland coverage for 20% of my personal property coverage (~$100,000).

I guess my main point for starting this thread was to gather some thoughts:

1) Any thoughts on why TD and RBC are so much cheaper than going through a brokerage ($600-$700 annual difference)?
2) Any thoughts on RBC insurance's service if you make a claim? I'm currently with TD insurance for auto and I'm pretty content with how they handle claims.
3) Is $50,000 extended water coverage from TD enough for a 2500sqft house? It's just a bit weird that TD you have a to pick an amount while other insurers cover water up to your limit. Should I stay away from TD because of this?
12 replies
Deal Addict
Jun 26, 2019
1275 posts
976 upvotes
Hello Neighbor Smiling Face With Open Mouth

Anyways, those prices seem close to what I pay for about the same area and same packages, if not a bit cheaper. Before I get into this, I went with TD as I had my autos with them already and got further discounts for bundling. That said, it looks like RBC may be giving you a bit more coverage.

The $10k for high value items is probably not as clean cut. For TD there are a lot of different categories, IIRC one package covered around $6k for jewelery and the higher package was $15k. Then there are tons of other breakdowns for everything else. May be worthwhile to sift through the fine print a bit and make sure you are covered.

In terms of sewer back up protection, again, you want to find out what is covered. Is your basement finished? How many valuables do you keep down there? etc etc. My coverage is probably more expensive than yours due to the area I live in.

The TD extended water protection covers a number of things, check what the RBC one covers.

In regards to costs, insurance is always hard to nail down, there are a lot of factors at play, so its hard to say why one company may be higher for a house in that specific area.
Deal Addict
User avatar
Jul 2, 2001
4674 posts
2073 upvotes
GTA
Give https://www.squareone.ca/ a try, they were much cheaper than rbc for me. Rbc increased my price by 60% for no reason, i told them to pound sand and switched.
.
Deal Addict
Jun 16, 2009
2871 posts
1245 upvotes
Woodbridge
Another vote for square one. Not only they
Offered a very competitive prices when TD jacked up my home insurance, customer service was excellent too. You can use credit card to pay the premium.
Policy and all other details are available online which was very convenient.
I had switch over from them starting this April only because I was getting a better deal on auto (30% saving from TD) when I bundled all my services.
shabby wrote: Give https://www.squareone.ca/ a try, they were much cheaper than rbc for me. Rbc increased my price by 60% for no reason, i told them to pound sand and switched.
HVAC Professional. Committed to customer, not brand.
Furnace & Central AC Group Buy 2021
Newbie
Dec 3, 2016
34 posts
11 upvotes
Rbc over TD. Rbc is underwritten by Aviva and their overall home insurance product is better. $50k for extended water coverage is garbage you want it up to your full policy limits. TD does not offer this. For high value items you can get additional coverage through RBC or you can schedule items individually which is the way to go for anything of high value. $5k and up.
[OP]
Newbie
Mar 6, 2021
31 posts
36 upvotes
Thanks everyone.
Square One gave me quotes similar to the brokers (~$500+ more than TD/RBC);.
**edit** i just redid the quote and it looks like it's very similar to RBC/TD at $1,253/year. I'll have to review their coverage and compare.

I'll be purchasing a home with another (Joint tenancy) but we're not officially common law at the moment.
Because of this, RBC said their underwriters are not able to put both of us on the same policy and that we must get separate policies...
The agent went further to explain even if a father and son purchase a property together, under RBC, both the father and son must get their own individual home insurance policies which effectively means you'll be paying double.

I'm going to call again to see what another agent says because TD confirmed they can put two individuals on the same policy regardless of martial status.
yyc987 wrote: For high value items you can get additional coverage through RBC or you can schedule items individually which is the way to go for anything of high value. $5k and up.
About high value items, when you schedule items individually, apparently that'll require an annual appraisal to determine the actual price of your jewelry.
I'm not concerned that the jewelry isn't worth that much, but it seems like a hassle in terms of time and cost to get an annual appraisal.

TD said any item under $15,000 is covered without an appraisal.
Newbie
Dec 3, 2016
34 posts
11 upvotes
Whoever you talked to at RBC is wrong. You can have two people on a policy that are not related. If both your names are on the title both of you can be listed on the policy. I know for a fact Aviva works this way which is who RBC insurance is through.

Scheduling items is the best way to protect specific items. Ive never heard of annual appraisals maybe once every 3-5 years but even then it's unlikely.
Deal Addict
User avatar
Jul 2, 2001
4674 posts
2073 upvotes
GTA
citson wrote: Square One gave me quotes similar to the brokers (~$500+ more than TD/RBC);.
**edit** i just redid the quote and it looks like it's very similar to RBC/TD at $1,253/year. I'll have to review their coverage and compare.
That's interesting, two other people i know got lower quotes with square one. Anyway just monitor your policy renewal if you decide to go with rbc, my yearly increase with square one were a few dollars at best.
.
[OP]
Newbie
Mar 6, 2021
31 posts
36 upvotes
yyc987 wrote: Whoever you talked to at RBC is wrong. You can have two people on a policy that are not related. If both your names are on the title both of you can be listed on the policy. I know for a fact Aviva works this way which is who RBC insurance is through.
Just a minor update. I called RBC again and had another rep + their manager confirm that they cannot put two names on a policy unless we are common law or married.
They re-confirmed that prior example where a father and son who purchased a property together would not be able to be insured with RBC.
They went further to explain that even though RBC is underwritten by Aviva, they have different guidelines which is kind of ridiculous.

I'm going to confirm with Square One and TD again. If we're having this many roadblocks due to marital status then we might as well just sign papers now instead of waiting for the ceremony.
Deal Expert
Feb 7, 2017
17075 posts
14454 upvotes
Eastern Ontario
Biggest thing you want with an insurance policy is to ensure you have REPLACEMENT VALUE
Not based on when you bought the item / house
But what it would actually cost IN THE PRESENT to replace it / them

Agree with what @yyc987 in Reply # 7 said about high value items & RBC
Should apply to Jewellery, Art, Antiques, Furs etc
I know we’ve not had to submit reappraisals ever on anything
Just sent in copies of the original GIA Report and Purchase Receipt

And your last comment on joint ownership
Legally Common Law status can differ slightly by Province

You may unknowingly already be considered common law if you’ve been living together 12 months time
Certainly so in the eyes of the Federal Govt = https://www.canada.ca/en/revenue-agency ... tatus.html
And in some Provinces in some situations, but not in others
(ie ... YES as a couple ... BUT NO perhaps if breaking up looking @ Division of Property etc )

My best advice ...
If you are entering into a home purchase together but not married ... yet
It’s probably a good idea to consult a Family Lawyer
And get a Cohabitation Agreement drawn up to protect each other & your assets

It’s no big deal, as 2 people getting married anyhow
Can benefit from a Family Lawyer Talk beforehand anyhow
Whether you opt to get a PreNup or not

But if marriage isn’t on the horizon for some time
(Don’t rush it along as you have suggested here ... by signing papers vs waiting in the ceremony )

Life is a case of everything in good time ... and order

You certainly won’t be the first couple to have made a big purchase like a house before the wedding
And you won’t be the last

A Family Lawyer familiar with Property, Estate, Wills etc experience can help you sort this out
And the best way to accomplish what you need to get done
Newbie
Dec 3, 2016
34 posts
11 upvotes
Rbc is odd I've never heard of that before but property insurance isn't as regulated as auto so insurers can set different rules.

@pointshubby is bang on with the replacement value. Comprehensive insurance policies will have this as a standard endorsement if they don't confirm this run away.

The common law thing is a bit different in insurance. It's either three year living together or one year if there is a child of the union. This is based on my knowledge in Alberta. I'm not licensed in Ontario but the other jurisdictions I am licensed in are the same.
Deal Expert
Feb 7, 2017
17075 posts
14454 upvotes
Eastern Ontario
yyc987 wrote: Rbc is odd I've never heard of that before but property insurance isn't as regulated as auto so insurers can set different rules.

@pointshubby is bang on with the replacement value. Comprehensive insurance policies will have this as a standard endorsement if they don't confirm this run away.

The common law thing is a bit different in insurance. It's either three year living together or one year if there is a child of the union. This is based on my knowledge in Alberta. I'm not licensed in Ontario but the other jurisdictions I am licensed in are the same.
Ya it differs by Province & circumstance
As far as the legal definition ... and possible division of assets / support etc
Quebec for example is ... immediate status if there’s a kid involved ... no matter how long couple has resided together
In Ontario, it’s 3 years if no kids. If kids, then after 1 year.

Part of that is cuz Ontario’s Laws don’t have a full provision for Common Law
And the laws that surround how a “Marital Home” is treated as an asset
In the case of Divorce or Death

In Canada as a whole / federally ... it’s 12 months

Not sure where it truly sits in regards to Home Insurance

I would have thought that would follow the federal definition
As there’s no division of assets happening
Just the insuring of them ... and where they reside
Certainly confusing

* AGAIN I reiterate tho ... anyone looking to “shack up”
Truly should consult a Lawyer beforehand
[OP]
Newbie
Mar 6, 2021
31 posts
36 upvotes
Just an update -- I ended up going with TD.
+ Able to put both homeowners on the insurance, regardless of marital status
+ Found out their extended water coverage can actually go up to policy limit ($3MM) and the premium difference between $50,000 and $3MM is $60/year so it's a no brainer.
Final premium I paid for 2,500 sqft detached property in Stouffville is $1,069 + taxes (Group discount, Multiline discount, Online Quote discount).

About water coverage, I couldn't find a concrete answer online which was one of the reasons I started this thread. Hopefully this helps out someone else in their home ownership journey.
The rep I spoke with clarified for TD insurance, all damages caused by water will only be covered in the limit in extended water coverage. This includes:
-- Removal of water
-- Sanitization
-- Personal Property
-- Accommodation if your house is uninhabitable
-- Rebuild of the house (if the water damage was that extensive)
So $50,000 definitely isn't enough for peace of mind. For $60/year, you'll be covered for $3MM.

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