Home Insurance Estimator

Home Insurance in Canada: Coverage Types and Costs

Home insurance in Canada is not legally mandated, but virtually every mortgage lender requires it as a condition of the loan. A standard policy covers four areas: dwelling protection (the structure itself), personal property (belongings inside), liability coverage (if someone is injured on your property), and additional living expenses (temporary housing if your home becomes uninhabitable). Most policies are written on a comprehensive or broad-form basis, covering all perils unless specifically excluded.

Common exclusions include overland flood, sewer backup, and earthquake damage. These require separate endorsements or riders. Since major flooding events in recent years, overland flood coverage has become available from most major insurers but at a significant additional cost—often $200 to $500 per year. Sewer backup coverage typically costs $50 to $150 annually and is strongly recommended for homes with basements. The deductible you choose directly affects your premium: raising it from $1,000 to $2,500 can reduce annual premiums by 10%–15%.

Average Annual Home Insurance Premiums by Province

To lower premiums, consider bundling home and auto insurance with the same provider (discounts of 5%–15% are common), installing a monitored alarm system, upgrading electrical or plumbing in older homes, and maintaining a claims-free history. Shop quotes from at least three insurers every two to three years, as rates can vary by 20% or more for the same coverage.