Home Insurance ยท Canada-wide
Your mortgage lender
requires it. Your family
deserves to understand it.
Most Canadian homeowners have home insurance but have never actually read what it covers. A claim is the wrong time to find out. We compare the right policy for your home, your budget, and your situation before anything goes wrong.
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The Four Pillars of Home Insurance
Home insurance is four
Home insurance is four
types of protection in one.
A standard home insurance policy bundles four distinct coverage types together. Understanding what each one does is the difference between a policy that genuinely protects you and one that looks cheap on paper until you need it.
What a Standard Policy Covers
Every coverage type, explained plainly
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Dwelling Coverage
Covers the physical structure of your home itself: the walls, roof, floors, windows, built-in appliances, attached garage, and any permanently installed fixtures. If a fire guts your kitchen or a windstorm tears off your roof, dwelling coverage pays to rebuild it.
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Personal Property Coverage
Covers your belongings: furniture, electronics, appliances, clothing, sports equipment, and more. This coverage follows your stuff even when it is outside your home. Laptop stolen from your car? Bike taken from the park? Personal property coverage can apply.
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Personal Liability Coverage
Covers you if someone is injured on your property or you accidentally damage someone else's property. Legal costs, medical bills, and settlement amounts can reach into the hundreds of thousands. Most policies start at $1 million in liability protection. Many families should carry $2 million.
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Additional Living Expenses
If your home becomes uninhabitable due to a covered loss, this pays for your temporary housing, meals, and related costs while repairs are underway. Hotel bills and restaurant costs during a weeks-long repair add up fast. This coverage keeps you from paying out of pocket during an already stressful time.
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Detached Structures
Covers structures on your property that are not attached to your home: a detached garage, garden shed, fence, deck, or guest house. Typically covered at 10% of your dwelling coverage limit, though this can be adjusted if you have a large workshop or additional structure worth more.
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Voluntary Medical Payments
Pays the medical bills of a guest who is injured on your property, regardless of whether you are legally at fault. This is a goodwill coverage: it lets you cover a neighbour's stitches or a guest's sprained ankle without a formal liability claim and without needing to establish legal responsibility.
Who Needs Home Insurance?
If you own a home in Canada,
If you own a home in Canada,
you need this coverage.
Home insurance is not legally required in Canada the way auto insurance is, but virtually every mortgage lender will require proof of coverage before advancing funds. Beyond the lender requirement, your home is almost certainly the largest single asset you own. Leaving it uninsured or under-insured is a financial risk very few families can absorb.
Get my home covered todayYou Need Home Insurance If You Are
An owner, a buyer, or someone building
- A current homeowner with a mortgage (lender typically requires it)
- A first-time buyer closing on a home in Ontario, Alberta, or another province
- A homeowner who owns outright and wants to protect their equity
- A condo owner needing coverage for the unit interior and personal property (condo-specific policy)
- A homeowner whose current policy is renewing and who has not compared rates in 2 or more years
Policy Types Explained
Not all home insurance
Not all home insurance
policies are the same.
There are three main types of home insurance policies in Canada, and the differences between them matter significantly. Comprehensive (all-risk) coverage is the broadest and most common for homeowners. It covers all perils except those specifically excluded in the policy wording. This means you are covered for causes of loss that are not listed rather than only the ones that are, which is a much stronger position when making a claim.
Broad coverage provides comprehensive coverage on the dwelling but only named-perils coverage on your personal property. This is a middle-ground option that reduces the premium while maintaining strong coverage on the structure itself.
Basic or named-perils coverage only covers losses caused by perils that are explicitly listed in the policy. Fire, lightning, explosion, theft, and vandalism are typical inclusions, but water damage from a burst pipe or falling objects may not be. This is the least expensive option but also the least protective, and claims can be denied on a technicality if the cause of loss is not on the named list.
"Most homeowners I speak with do not know which type of policy they have until we look at it together. Many are paying for broad coverage and think they have comprehensive. That gap matters when water comes through the ceiling."
Policy Type Selector
How It Works
Getting the right coverage
Getting the right coverage
is simpler than the paperwork suggests
We make the process fast. Most clients have a confirmed policy within 24 to 48 hours of our first conversation.
1
We Talk About Your Home
Year built, square footage, construction type, roof age, whether you have a finished basement, pool, trampoline, home-based business, or high-value items like jewellery or art. These details shape your coverage and your premium.
2
I Compare Policies Across Multiple Carriers
I look at premium, policy type (comprehensive vs broad), deductible options, water damage endorsements, sewer backup, overland water, earthquake, and what each carrier actually pays out in the event of a major loss, not just the headline number.
3
I Explain the Options in Plain Language
Insurance policy wording is deliberately technical. I translate it. You will know exactly what is covered, what is excluded, what each endorsement adds, and what will happen if you make a claim for fire, water, or theft before you sign anything.
4
Policy Issued and Documents Delivered
Once you choose a policy, it is bound and documents are sent to you and your mortgage lender if required. Your lender receives the Certificate of Insurance they need for your closing or renewal.
5
Annual Review at Renewal
Your home's value changes. Renovation adds replacement cost. Carrier rates shift. I review your coverage at each annual renewal to make sure you are not paying too much, not underinsured, and that your policy still reflects your home and your life.
What Makes a Strong Policy
The six things to check
The six things to check
before you sign any home insurance policy
Replacement Cost vs Actual Cash Value
Replacement cost pays what it costs to rebuild or replace your belongings with new items today. Actual cash value pays what the depreciated item is worth now. A 5-year-old sofa worth $200 in actual cash value costs $1,200 to replace. Always aim for replacement cost coverage on both the dwelling and your contents.
Sewer Backup and Overland Water
Standard home insurance does not cover flooding. Sewer backup and overland water coverage are separate endorsements. With Canadian weather becoming more extreme, these are among the most important additions to any home policy. Basement flood damage averages $43,000 per claim in Canada. The endorsement typically costs $200 to $500 per year.
Guaranteed Replacement Cost on the Dwelling
Construction costs have risen sharply in Canada. A home insured for $600,000 three years ago may cost $850,000 to rebuild today. Guaranteed replacement cost means the insurer rebuilds your home regardless of the increase in construction costs, even if that exceeds your policy limit. Without it, you may face a significant shortfall.
Liability Limit of at Least $1 Million
Personal liability lawsuits in Canada can easily exceed $500,000 when serious injury is involved. $1 million is the standard starting point and is often included automatically. For families with a pool, a trampoline, rental suites, or frequent guests, increasing to $2 million is worth the small additional premium.
Riders for High-Value Items
Standard personal property coverage has sub-limits for specific categories: jewellery is often capped at $5,000, electronics at $5,000 to $10,000, bicycles at $1,500. If you own jewellery, fine art, a wine collection, musical instruments, or sports equipment above those limits, a scheduled articles rider covers the full value without depreciation.
Claims-Free Discount and Loyalty Pricing
Insurers reward claim-free histories with significant discounts, sometimes 20% or more. Bundling your home and auto insurance with the same carrier typically adds another 5% to 15% discount. I check both of these at renewal to make sure you are capturing every savings you are entitled to.
Common Exclusions
What standard home insurance
What standard home insurance
does NOT cover
Understanding exclusions is as important as understanding what is included. These are the most common gaps where homeowners are surprised at claim time.
Gaps in standard coverage you need to know about
Overland Flooding
Surface water from heavy rain or snowmelt entering your home is not covered under a standard policy. An overland water endorsement is required. Many older homes in flood-prone areas may not qualify or may face high premiums for this endorsement.
Sewer Backup
Water backing up through floor drains or toilets due to a municipal sewer overload is a separate endorsement. Not automatically included. One of the most common and expensive home insurance claims in Canada.
Earthquake
Earthquake damage is excluded from standard policies across Canada. An earthquake endorsement is available and particularly important for homeowners in British Columbia. Available in Ontario and Alberta but less commonly purchased.
Gradual Deterioration and Maintenance
Damage that results from neglect or wear over time is not covered. A leaky pipe that drips into a wall for two years before being discovered is typically denied. Home insurance covers sudden and accidental loss, not deferred maintenance.
Vacant Home Coverage
If your home is unoccupied for more than 30 consecutive days (the threshold varies by insurer), your coverage may be reduced or suspended for certain perils. Snowbirds and people travelling for extended periods need to notify their insurer or purchase a vacant home endorsement.
Home-Based Business Property and Liability
Business equipment used in a home office is typically excluded or limited to $5,000 or less. Liability arising from a home-based business (a client injured while visiting) is also excluded from personal liability coverage. A business endorsement or separate commercial policy is required.
What a Claim Actually Covers
When something goes wrong,
this is what your policy steps in to pay for.
Understanding the practical scope of a claim helps you see why coverage limits and endorsements matter before you need to use them.
Fire and Smoke Damage
Kitchen fire that spreads to the walls, attic, and roof. The insurer pays for emergency cleanup, structural repairs, replacement of damaged personal property, and your hotel and meals while the home is being rebuilt. Smoke damage in adjacent rooms is also covered, even if the fire did not reach them.
Burst Pipe and Water Damage
A pipe bursts overnight and floods the main floor. Covered under a standard comprehensive policy as sudden and accidental water damage. Drywall replacement, flooring, subfloor, insulation, and damaged furniture and appliances are all within scope. The average water damage claim in Canada exceeds $30,000.
Theft and Break-In
Personal property stolen in a break-in is covered up to your policy's personal property limit, with sub-limits for categories like jewellery and electronics. Damage to the home itself from forced entry (broken door, smashed window) is also covered under dwelling coverage.
Windstorm and Hail
Shingles ripped off by a storm. Hail damage to the roof, siding, and windows. A tree branch through the living room window. All covered under a comprehensive or broad policy as windstorm perils. Large hailstorms in Alberta have resulted in some of the largest insurance events in Canadian history.
Who It's For
Three homeowners, three
Three homeowners, three
different coverage conversations.
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First-Time Homebuyer
Closing in 30 to 60 days
"The mortgage broker told me I need to have insurance in place before closing. I have no idea where to start or what I actually need."
โ Policy bound before the closing date and Certificate of Insurance sent to the lender
โ Plain-language explanation of comprehensive vs broad before you commit
โ Water damage endorsements reviewed given the home's age, basement, and location
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Established Family Homeowner
Policy renewing soon
"We finished the basement last year and added a deck. I don't think our current policy reflects any of that. The premium went up again and I have never actually compared."
โ Replacement cost limit updated to reflect the basement and deck addition
โ Policy compared across 10+ carriers to find a better rate for the same coverage
โ Home and auto bundling discount checked at renewal
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Condo Owner
Owns a unit in a strata or condo building
"My building has a master insurance policy. Do I even need my own? What does the building policy actually cover and what falls on me?"
โ Clear explanation of what the condo corporation's policy covers vs your unit policy
โ Loss assessment coverage to protect against your share of the building deductible
โ Betterments and improvements coverage for upgrades made to the unit by previous owners
Coverage Comparison
Comprehensive vs Broad
Comprehensive vs Broad
vs Basic home insurance
Side by side, the differences between policy types become clear. Most homeowners should aim for comprehensive coverage.
| Coverage Aspect | Comprehensive (All-Risk) โญ | Broad Coverage | Basic (Named Perils) |
|---|---|---|---|
| Dwelling coverage basis | All perils except exclusions | All perils except exclusions | Named perils only |
| Personal property coverage basis | All perils except exclusions | Named perils only | Named perils only |
| Claim flexibility | Strong. Cause of loss does not need to be named. | Medium. Contents claims require named perils. | Narrow. Cause must match the listed perils. |
| Typical premium | Highest | Mid-range | Lowest |
| Recommended for | Most homeowners and families | Budget-conscious owners with newer homes | Very rare. Usually for high-risk properties. |
Common Questions
Home insurance questions
Home insurance questions
answered plainly
How is my home's replacement cost calculated and is it the same as market value?
Replacement cost and market value are completely different numbers and should never be confused. Market value is what a buyer would pay for your home and land in today's real estate market. Replacement cost is what it would cost to rebuild the structure from the ground up using current construction labour and material costs. In many Canadian cities, the replacement cost is actually lower than the market value because land value is a large component of what you paid. In some rural areas it may be higher. Your insurer calculates replacement cost based on the square footage, construction materials, roof type, features, and local labour costs. I review this calculation at each renewal to make sure it reflects any renovations or changes in construction costs since your last update.
Does home insurance cover water damage from a burst pipe?
Yes. A burst pipe that causes sudden and accidental water damage to your home and contents is covered under a comprehensive or broad home insurance policy. What is not covered is gradual leakage over time that could have been caught and repaired with reasonable maintenance. The distinction matters: if a pipe freezes and bursts overnight causing significant damage, that is a covered sudden event. If a slow drip behind a wall has been deteriorating a floor for two years, that is a maintenance issue and the claim is likely to be denied in part or in full. Overland flooding (surface water from rain or snowmelt entering the home) and sewer backup are separate endorsements and are not part of the standard water damage coverage.
My basement flooded after a heavy rainstorm. Is that covered?
Only if you have an overland water endorsement on your policy. Standard home insurance covers internal water damage (burst pipe, appliance failure) but not water that enters from outside. Heavy rain causing surface water to flow into your basement through window wells, doors, or cracks in the foundation is overland flooding and requires a specific endorsement. Sewer backup, which is when heavy rain overwhelms the municipal sewer system and water backs up through your floor drain, is a different endorsement. Many homeowners need both. I review whether both are on your policy at each renewal, especially given the frequency of extreme rainfall events across Ontario and Alberta in recent years.
What happens if I do not have enough coverage to rebuild my home?
If your dwelling coverage limit is lower than the actual cost to rebuild, you will be responsible for the difference. This is called being underinsured. With construction costs rising sharply in Canada over the past several years, many homeowners who set their coverage limit several years ago are now significantly underinsured without realizing it. A guaranteed replacement cost endorsement protects you from this gap by committing the insurer to rebuild the home to its original standard regardless of whether construction costs have exceeded your policy limit. This is one of the most valuable endorsements available and is worth the small additional premium on most policies.
Can I get home insurance if my home has a claims history?
Yes, but your options and premiums will be affected. Most insurers look at the last 5 years of claims history on the property and on you personally as the applicant. One or two claims in that period may result in a higher premium but should still allow access to most carriers. Multiple claims or a single very large claim (over $100,000) may limit you to a smaller number of carriers, or you may need to work with a non-standard insurer. I work with 10+ carriers and can identify the best available option for your specific history without you having to apply to each one separately.
I run a small business from my home. Does my home insurance cover it?
Not automatically. Standard home insurance policies exclude or significantly limit coverage for business-related property and liability. Business equipment is often capped at $2,500 to $5,000 under personal property, and personal liability does not extend to liability arising from the operation of a business (for example, a client injured while visiting your home office, or a client suing you over a business transaction). A home-based business endorsement adds specific coverage for your equipment and some basic business liability. Depending on the nature and scale of your business, a separate commercial general liability policy or business owner's policy may be the right solution. I assess the coverage gap and recommend the appropriate option.
Mukosolu Blessing Ezeife
Licensed Life Insurance Agent ยท Canada-wide
Home insurance is not a commodity. The right policy for your home depends on what it is made of, how old it is, what is in it, and what risks it faces. I take the time to understand your specific situation and find coverage that actually fits, not just the cheapest number that satisfies your lender.
FSRA Licensed ยท Ontario
AIC Licensed ยท Alberta
Greatway Financial MGA
Canada-wide Service
I Read the Policy Wording With You
Most people never read their home insurance policy. I go through the key sections with every client: what is covered, what is excluded, the deductible structure, and what each endorsement actually adds. You understand what you are buying before you buy it.
I Compare 10+ Carriers at Every Renewal
Carrier rates change year to year. A carrier that had the best rate last year may not this year. At every renewal I rerun the comparison so you are never paying more than you need to for the coverage you have.
Lender Documents Handled Directly
If you are a buyer closing on a home, I send your Certificate of Insurance directly to your mortgage lender, lawyer, or notary before your closing date. You do not need to coordinate between your insurer and your lender. I handle that step for you.
Your home is your biggest asset.
Let's make sure it is properly protected.
One conversation. I compare your options across 10+ carriers, explain every coverage decision in plain language, and have your policy bound the same day.
General information only. Home insurance availability, coverage terms, and pricing vary by carrier, property type, location, and claims history. All coverage is subject to underwriting approval. Endorsements such as overland water and sewer backup may not be available for all properties. Mukosolu Blessing Ezeife, Licensed Life Insurance Agent, Canada-wide, operating under Greatway Financial.