Home Insurance for Canadians

Protect your home and belongings with the right coverage. Here's what you need to know.

Do You Need Home Insurance?

Home insurance is not legally required in Canada, but:

  • Mortgage lenders require it (you can't get a mortgage without it)
  • It protects your largest asset and your belongings
  • It covers liability if someone is injured on your property

Renters: You need tenant insurance (also called renters insurance) to cover your belongings and liability. Your landlord's policy doesn't cover your stuff.

What Does Home Insurance Cover?

1. Dwelling Coverage

Repairs or rebuilds your home if damaged by fire, wind, hail, lightning, or other covered perils. Does NOT include land value (only the structure).

2. Personal Property

Covers your belongings (furniture, electronics, clothing) if stolen or damaged. Usually 50-70% of your dwelling coverage. High-value items (jewelry, art) may need extra coverage.

3. Liability Protection

Covers legal fees and damages if someone is injured on your property or you accidentally damage someone else's property. Typical coverage: $1-2 million.

4. Additional Living Expenses

Covers hotel, meals, and other costs if your home is uninhabitable due to a covered loss (e.g., fire). Usually 20-30% of dwelling coverage.

What's NOT Covered?

Standard home insurance excludes:

  • Floods: Overland flooding requires separate coverage (available since 2015 in Canada)
  • Earthquakes: Separate add-on required (important in BC)
  • Sewer backup: Often excluded unless you add it
  • Wear and tear: Old roof, aging furnace, gradual damage
  • Intentional damage: Vandalism by you or your family
  • Business activities: Home-based business may need separate policy

Types of Home Insurance Policies

Comprehensive / All-Risk (Best)

Covers all perils except those specifically excluded. Most expensive, but best protection.

Broad / Named Perils

Covers only specific risks listed in the policy (fire, theft, wind, etc.). Cheaper, but gaps in coverage.

Basic / No Frills

Minimal coverage for older homes or high-risk properties. Very limited protection.

How Much Coverage Do You Need?

Your dwelling coverage should equal the cost to rebuild your home (not the market value or purchase price).

Why? Rebuilding costs can be higher than market value, especially for older or custom homes.

Example:

  • Home market value: $600,000
  • Land value: $200,000
  • Rebuild cost (structure only): $450,000
  • Dwelling coverage needed: $450,000

Your insurer will help estimate rebuild costs. Review annually, especially after renovations.

How to Lower Your Premium

  • Increase your deductible: Raising from $500 to $1,000 can save 10-25%
  • Bundle with auto insurance: Save 10-25% by using the same insurer
  • Install security systems: Alarms, cameras, deadbolts can reduce premiums
  • Update your home: New roof, plumbing, electrical can lower rates
  • Stay claims-free: No claims for 5+ years = lower premiums
  • Shop around: Get quotes from at least 3 insurers every 2-3 years
  • Ask about discounts: Retirees, non-smokers, alumni, professional associations

What to Do When Filing a Claim

  1. Document the damage (photos, videos, receipts)
  2. Contact your insurer immediately
  3. Prevent further damage (e.g., tarp a leaking roof)
  4. Keep receipts for temporary repairs and living expenses
  5. Don't throw out damaged items until the adjuster sees them
  6. Be honest and detailed in your claim

Condo vs Tenant Insurance

Condo Insurance

Covers your unit's interior, your belongings, and liability. The condo corporation insures the building structure and common areas.

Tenant Insurance

Covers your belongings, liability, and additional living expenses. Your landlord's policy does NOT cover your stuff. Typically $15-30/month.

Ready to Explore More?

Check out our other insurance guides and financial tools.

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