Home Insurance in Canada: A Complete Guide
Everything you need to know about home insurance in Canada.
What is Home Insurance?
Home insurance (also called property insurance or homeowner's insurance) protects your home and its contents against damage or loss. While not legally required in Canada, most mortgage lenders require you to carry home insurance as a condition of your loan. It provides coverage for the structure of your home, your personal belongings, liability protection, and additional living expenses if your home becomes uninhabitable.
Types of Home Insurance Policies
There are several types of home insurance policies in Canada: Comprehensive (All-Risk) policies cover all perils except those specifically excluded; Named Perils policies cover only the risks specifically listed; Broad Form policies provide comprehensive coverage for the building and named perils for contents; and No-Frills policies offer basic coverage for homes that don't qualify for standard policies. Most homeowners opt for comprehensive coverage for the best protection.
What Home Insurance Covers
Standard home insurance typically covers: damage from fire, lightning, windstorm, hail, and explosion; theft and vandalism; water damage (from burst pipes, not flooding); personal liability if someone is injured on your property; and additional living expenses. Common exclusions include flooding, earthquakes, sewer backup (available as add-ons), normal wear and tear, and intentional damage.
How to Choose the Right Home Insurance
When choosing home insurance, consider: the replacement cost of your home (not market value), the value of your personal belongings, your liability exposure, any additional coverage you may need (flood, earthquake, sewer backup), your deductible amount, and available discounts. An independent insurance broker can help you compare policies from multiple insurers to find the best coverage at the best price.