You own a house in Canada. You need home insurance. It protects your home, your belongings, and your liability.
Here’s what you need to check and how to choose a policy that works for you.
What kinds of coverage should your policy have?
Dwelling coverage
Covers the cost to rebuild or repair your home structure after damage (fire, wind, etc.). Use replacement cost, not market value.
Other structures
If you have sheds, detached garages or fences, they need separate coverage, usually a percent of your dwelling amount.
Contents (personal property)
Your furniture, electronics, clothing, etc. Make an inventory. Know policy limits, especially for high-value items. Might need extra riders for things like art or jewellery.
Liability protection
If someone is injured on your property or you accidentally damage someone else’s property, this part pays legal or medical costs.
Additional living expenses
If your house is damaged badly and you can’t live in it while repairs happen, this covers temporary accommodation and related costs.
Optional/add-on coverages
You might need extra coverage depending on risks where you live. Common ones include flood, earthquake, sewer backup, overland water damage. Standard policies often don’t include these.
What policies often don’t cover (so you must watch out)
- Wear and tear, poor maintenance.
- Damage from pests, mould, rust.
- Flood damage, especially outside events (overland).
- Earthquakes usually excluded unless added.
How insurers set your premium
You’ll pay more or less based on:
- Value and age of your house; materials used.
- Where you live (how close to fire station/hydrant, crime rate, risk of flooding/earthquakes).
- Size and value of your contents.
- Deductible: higher deductible lowers premium but increases what you pay if you claim.
How to shop for the best policy
- Compare quotes from several insurers. Same coverage, look at price + what’s excluded.
- Read the fine print. Especially what’s not covered and what extra coverages cost.
- Check your inventory of possessions. Photos, receipts help in claims. Keeps you from under-insuring.
- Adjust as things change: renovation, new expensive items, climate risks. Don’t carry old limits if your situation changed.
- Talk to a broker: sometimes they can point out less obvious gaps or better deals.
Common mistakes homeowners make
- Relying on market value rather than replacement cost.
- Assuming all risks are included. Many perils excluded by default.
- Skipping endorsements (e.g. flood, earthquake) when their area is exposed.
- Setting deductible too low, which raises premium unnecessarily.
Shopping around for home insurance helps you compare coverage, costs, and exclusions so you don’t overpay or end up under protected. Always rely on reputable providers and trusted advisors—your home is too valuable to risk on a policy that looks cheap but falls short when you need it most.
