Family standing in front of a protected home, representing affordable home insurance options in Canada.

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Choosing the Right Type of Home Insurance

Home insurance protects your home’s structure, personal belongings, and covers you for accidental damage to others’ property. It can also pay for temporary living expenses and be customized with add-ons like water damage, identity theft, and earthquake coverage.

Standard Home Insurance Coverage

01.

Standard

Building Protection

Q: What's the difference between my home's replacement cost and market value?

Replacement cost is the amount it would take to rebuild your home from scratch today. Market value is what your home would sell for on the real estate market, including the land. Your insurance is based on the replacement cost, not the market value.

The standard building protection protects the main structure of your home and anything permanently attached to it, such as garages, decks, and porches. It helps cover the cost to repair or rebuild your home if it’s damaged by an insured peril like fire, wind, or vandalism. Whats covered:

The physical structure of your home—including the foundation, walls, flooring, windows, doors, and roof
Attached structures such as garages, decks, and porches
Permanently installed outdoor equipment like pool heaters or backup generators
Damage to the home from a break-in, such as broken doors or windows
Trees, shrubs, plants, and lawns on your property (subject to limits)
Construction materials and supplies on-site for building, renovating, or repairing your home
Note: Theft of materials is only covered if the home is completed and ready for occupancy

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02.

standard

Detached Private Structures

Your home insurance policy doesn’t just protect your main house—it can also help cover the cost of repairing or rebuilding other structures on your property that aren’t physically attached to your home. These might include things like a detached garage, tool shed, or gazebo. If these structures are damaged due to a covered event, this portion of your policy ensures you're not left covering the cost out of pocket.

Here’s what’s typically included and excluded under Other Structures Protection:

Detached structures on your property that are not connected to your main residence, such as garages, sheds, garden houses, or gazebos.
Damage resulting from break-ins, including broken doors, windows, or forced entry to these structures.
Structures connected by a utility or fence, such as a garage powered by a utility line or a shed linked by a fence—even if not physically attached to the home.
Optional upgrades available for higher coverage limits

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Detached garage and outdoor shed beside a home, representing other structures insurance coverage.

Family belongings and household items inside a home, representing personal belongings insurance coverage.

03.

standard

Personal Belongings Protection

Your home is filled with the things that matter most to you—furniture, clothing, electronics, appliances, and personal items you've collected over time. If these items are ever damaged, destroyed, or stolen due to a covered event (like a fire, theft, or vandalism), Personal Belongings Protection helps cover the cost to repair or replace them.

This coverage doesn’t stop at your front door. Whether you're storing items off-site, traveling abroad, or have a student living away from home, your personal belongings can still be protected—giving you peace of mind no matter where life takes you. It covers:

Personal belongings stolen or damaged anywhere in the world, not just inside your home
Items temporarily stored off-site, even outside your home
Belongings of a full-time student who is covered under your policy and temporarily living away for school
Personal items stored in a bank’s safety deposit box

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04.

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Additional Living Expenses

If your home becomes uninhabitable due to a covered loss—like a fire or storm—your insurance doesn’t just cover repairs. It also helps with the extra living costs you face while your home is being rebuilt. This is known as Additional Living Expenses (ALE).

ALE covers the increased costs you wouldn’t normally have if you were still living at home—helping reduce financial stress during a major disruption.

Temporary housing: Costs for staying in a hotel, motel, or short-term rental while your home is being restored.
Moving expenses: The cost of relocating to and from your temporary accommodation.
Additional food expenses: If you’re unable to cook and need to dine out more frequently, the difference in cost from your usual grocery spending is covered.
Loss of rental income: If you rent out part of your home and it becomes uninhabitable due to damage, your policy can cover the rental income you lose during the repair period.

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Family staying in temporary accommodation after home damage, representing additional living expenses coverage.

Homeowner discussing an accident claim with an insurance agent, representing personal liability coverage.

05.

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Property Damage & Injury Protection

Accidents happen—and when they do, you could be financially responsible for injuries to others or damage to their property, even if it’s unintentional. Personal Liability Coverage is an essential part of your home insurance, protecting you if you’re found legally liable for accidental harm to someone or their belongings, whether it happens at home or anywhere in the world.

It also helps cover legal defence costs and some medical expenses, so you’re not left paying out of pocket if there’s a claim or lawsuit. What’s Covered:

Legal defence costs, including lawyers’ fees, court costs, and other expenses if you’re sued for unintentional injury or property damage.
Urgent medical expenses you voluntarily pay if someone is injured: While visiting your home (e.g., slips, falls, or other accidents) or by your actions elsewhere in the world
Indemnity payments—the amount you are legally required to pay if found liable for: Accidental bodily injury to another person or Unintentional damage to someone else’s property (e.g., damaging a neighbor’s fence or furniture while moving)
Incidents involving family members, including children or pets, that result in injury or damage (within the limits of your policy)

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06.

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Voluntary Medical Payment

Accidents can happen—even when you're not at fault. That’s why your home insurance includes Voluntary Medical Payment coverage. It provides a goodwill safety net if someone is accidentally injured on your property, even if you're not legally responsible. It allows for payment of reasonable medical expenses without requiring you to admit fault or liability.

This protection is especially useful for maintaining good relationships with visitors, neighbours, or delivery personnel by offering help with medical costs—regardless of who’s to blame.

No deductible applies – the full benefit is available up to the coverage limit.
Covers medical expenses for individuals accidentally injured on your property.
No legal liability required – you do not have to be found at fault for payment to be made.
Payment limit of up to $5,000, as stated in your policy.
Time limit – expenses must be incurred within one year from the date of the accident.
Applies to third-party visitors (not residents of the home or household members).

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Visitor receiving medical assistance after a minor accident at a homeowner’s property, representing voluntary medical payment coverage.

Insurance agent assisting a homeowner with accidental property damage coverage support.

07.

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Voluntary Payment for Damage to Property

This coverage provides a valuable benefit by allowing the insurer to make a voluntary payment to cover certain types of property damage caused by the insured, even when there is no legal liability. This means you could receive compensation for specific accidental damages without going through a liability claim process, and without paying a deductible.

Key features of this coverage include:

Up to $1,000 is available for voluntary payments towards property damage.
Unintentional Damage: The insurer will voluntarily pay for property damage that has been caused unintentionally by the insured, even if the insured is not legally liable for that damage.
Coverage for Damage Caused by Children: This coverage also reimburses others for direct property damage that is intentionally caused by an insured child who is 12 years of age or younger.

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Enhanced Water Damage Coverage

With aging municipal infrastructure and more frequent extreme weather events, the risk of water damage to your home is higher than ever. The Enhanced Water Damage Coverages offers added protection to help cover costly repairs and cleanup from water-related incidents — giving you peace of mind when it matters most.

Basement water damage caused by sewer backup, representing home insurance sewer backup coverage.

01.

water coverage

Sewer Backup

Protects against water damage caused by water backing up into your home through sewers, drains, or sump pumps.

Covers damage to floors, walls, and belongings caused by sewer water entering from below.
Typically requires a specific endorsement added to your policy.
Especially important in areas prone to aging infrastructure or heavy rainfall.

What’s Not Covered:

Flooding from uncommon or extreme events, such as tsunamis, tidal waves, or the sudden failure of a dam.
Gradual water infiltration, like ongoing seepage or slow leaks that occur over time and are not sudden or accidental.
Water damage during high-risk periods, including when your home is: Under construction (unless special coverage is in place), or Vacant for more than 30 consecutive days without prior notice to your insurer or proper precautions taken.

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02.

water coverage

Overland Water

Covers water damage from water that flows above ground and enters your home, including damage to personal belongings

Includes flooding caused by the rising and overflow of fresh water sources, such as lakes, rivers, or streams.
Covers sudden and accidental pooling of water resulting from heavy rainfall or rapid melting of snow or ice.
Also covers water entering your home at ground level, including through doors, windows, or other entry points during severe weather events.

What’s Not Covered:

Flooding caused by extreme or unusual events, such as a tsunami, tidal wave, or the sudden failure of a dam.
Ongoing or repeated water leakage, including slow or continuous seepage into the home over time.
Groundwater or rising water table that leads to water entering through foundations, walls, floors, walkways, or driveways.
Earth movement, including landslides, mudslides, or shifting soil—even if caused by water.
Water damage occurring during high-risk periods, such as when your home is: Under construction without specific coverage in place, or Vacant for 30 days or more without prior arrangements with your insurer.

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Flooded yard with water entering a home, representing overland water damage coverage.

03.

water coverage

Ground Water

Protects against water that seeps into the home from the ground due to soil saturation.

Covers water entering through basement walls, floors, or foundation cracks.
Often caused by prolonged wet weather, high water tables, or poor drainage.
May require a separate endorsement or be bundled with other water protection packages.

Whats Not Covered:

Flooding caused by a tsunami, tidal wave, or dam failure
Repeated or ongoing water leakage or escape into your home
Damage resulting from landslides or any other earth movement
Damage to foundations, footings, slabs, or perimeter drainage systems
Water damage occurring while your home is under construction or left vacant for 30 days or longer

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04.

water coverage

Water and Sewer Line Protection

Your home's exterior water and sewer lines carry clean water in and wastewater out but are prone to leaks, breaks, or damage that can be costly to fix. Our enhanced water damage package helps cover repair or replacement expenses to keep your plumbing reliable and protect your property. Coverage includes:

Up to $10,000 maximum coverage for repairs and related damage
Costs to repair or replace broken or damaged exterior water and sewer lines on your property caused by leaks, breaks, tears, ruptures, or collapses
Excavation expenses to dig up and access the damaged pipeline for repair or replacement
Repair or replacement costs for outdoor property affected during the process, including trees, shrubs, plants, lawns, sidewalks, and driveways
Often required if your vehicle is leased or financed

Whats Not Covered:

Blockages or low water pressure in water or sewer lines
Treatment, removal, recovery, or disposal of pollutants or hazardous materials
Damage caused by disconnection or interruption of the main utility service
Water or sewer lines located under or running through bodies of water such as swimming pools, ponds, or lakes

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Underground water and sewer lines connected to a home, representing water and sewer line protection coverage.

Optional Home Insurance Coverage

Standard home insurance covers the basics, but it doesn’t protect against every risk. Optional coverage options—also called endorsements—let you customize your policy to fit your needs. From water damage to high-value items or equipment breakdowns, these add-ons provide extra protection and peace of mind while helping you avoid costly repairs.

Cracked ground and damaged home foundation after seismic activity, representing earthquake protection coverage.

01.

Optional

Earthquake Protection

Damage caused by earthquakes is almost always excluded from a standard home insurance policy. This endorsement provides financial protection for damage to your home and personal belongings in the event of an earthquake.

Structural Damage: Covers the cost to repair or rebuild your home and other structures on your property (e.g., a detached garage or shed) damaged by an earthquake.
Personal Property: Provides coverage for the repair or replacement of personal belongings damaged or destroyed.
Post-Quake Fire/Explosion: May also cover damage from a fire or explosion that is a direct result of the earthquake.

Whats Not Covered:

Damage from a tidal wave or tsunami, even if triggered by an earthquake
Damage from wind, hail, rain, or snow entering through pre-existing roof or wall openings
Damage resulting from failure to take reasonable steps to protect your property during or after an earthquake

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02.

Optional

Identity Theft Protection

This coverage helps you recover from the financial and legal consequences of a stolen identity. It provides support and covers expenses related to restoring your identity after a cyberattack or fraud.

Financial Reimbursement: Covers costs associated with identity theft, such as legal fees, notary fees, postage, and lost wages for time off work to resolve the issue.
Expert Assistance: Provides access to professionals who can guide you through the process of restoring your credit and identity.
Credit Monitoring: Can include services to help you monitor and repair your credit rating.

Whats Not Covered:

Business Losses: Coverage is typically limited to personal identity theft and does not extend to losses incurred by a home-based business, such as data problems or financial losses from a business bank account.
Fraudulent Acts by a Household Member: The policy will not cover losses or expenses resulting from a fraudulent, dishonest, or criminal act committed by a resident of your household.
Pre-Existing Fraud: The coverage will not apply to an identity theft occurrence that took place before the policy was in effect.

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Identity theft protection concept showing secure personal data and online safety shield.

Home-based business insurance protecting small business operations run from home against risks and losses.

03.

Optional

Home Based Business Insurance

A standard home insurance policy is not designed to cover business-related losses or liability. This optional coverage is essential for homeowners who operate a business from their home.

Business Property and Inventory: Covers loss or damage to business equipment, inventory, and supplies.
Liability Coverage: Protects you from liability claims related to your business operations, which is separate from your personal liability coverage.
Lost Income: May provide coverage for business income lost due to a covered peril that makes the home-based business inoperable.

Exclusions for Home-Based Business Insurance in Ontario:

High-Risk Activities: Excludes businesses using hazardous materials or with high client traffic.
Professional Liability: Does not cover claims of professional negligence; requires a separate policy.
Employee Injuries: Does not cover employee injuries; requires WSIB insurance.
Product Liability: Limited or no coverage for product-related claims; may need a separate policy.

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04.

Optional

Guaranteed Home Replacement Cost

If your home is a total loss, Guaranteed Replacement Cost pays the full cost to rebuild it, even if it exceeds your policy limit, protecting you from rising construction costs.

Inflation Protection: Protects you from the effects of inflation on building materials and labor costs.
Full Rebuild Coverage: Covers the entire cost of labor and materials to rebuild your home to its original specifications.
Cash Settlement Option: Some policies may give you the option to take a cash settlement instead of rebuilding, providing flexibility.

Exclusions for Guaranteed Replacement Cost (GRC):

Building Code Upgrades: Does not cover costs to rebuild to new, modern building codes.
New Location: The full benefit often requires rebuilding on the same property.
Voluntary Upgrades: Does not pay for any voluntary upgrades or improvements during the rebuild.
Partial Loss: The coverage is generally for total loss scenarios, not partial claims.
Time Limits: There may be a time limit to begin or complete the rebuild to be eligible.

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Guaranteed home replacement cost coverage ensuring full rebuilding of a home after damage or loss.

Rental protection landlord insurance covering rental property damage, loss of rent, and liability protection for landlords.

05.

Optional

Rental Protection (Landlord's Insurance)

If you own a home and rent it out to a tenant, your standard homeowner's policy will not cover your risks as a landlord. This is a separate type of policy designed to protect your investment property. Features:

Loss of Rental Income: Reimburses you for rental income lost if a covered peril makes the property uninhabitable.
Liability Coverage: Protects you if you are held legally responsible for injuries to a tenant or guest on your property.
Coverage for Your Property: Covers the physical building and any of your personal property on-site, such as appliances.

Exclusions for Rental Protection (Landlord's Insurance):

Tenant's Property: Does not cover the tenant's personal belongings; the tenant must buy their own insurance.
Tenant's Property: Does not cover the tenant's personal belongings; the tenant must buy their own insurance.
Tenant's Liability: The landlord's policy does not protect the tenant from their own liability claims.
Intentional Damage: Excludes damage caused intentionally or maliciously by a tenant.
Tenant's Financial Hardship: Lost rent due to a tenant's failure to pay is not covered; it only applies if the property is uninhabitable from a covered peril.
Normal Wear and Tear: Does not cover routine maintenance or the gradual deterioration of the property.

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06.

Optional

Scheduled Personal Property

This endorsement is for homeowners with high-value items that exceed the coverage limits of a standard policy. A regular policy may have sub-limits for specific categories of items, such as jewelry, fine art, or collectibles. A floater provides a higher, specified amount of coverage for these items. Features:

Increased Limits: Raises the coverage amount for specific, high-value items beyond the standard policy's limits.
Broader Protection: Often provides "all-risk" coverage, which may include accidental damage, misplacement, or loss that wouldn't be covered by a regular policy.
No Deductible: Many floaters have no deductible, meaning you don't have to pay out of pocket for a claim.

Exclusions for a Scheduled Personal Property (Floater) Endorsement:

Unscheduled Items: Does not cover valuable items that are not specifically listed on the policy.
Specific Exclusions: While "all-risk," it still excludes losses from war, nuclear activity, or gradual deterioration.
Wear and Tear: Does not cover damage from normal wear and tear or mechanical breakdown.
Lack of Appraisal: Items without a recent, professional appraisal may not be covered.
Cash and Securities: Excludes losses for cash, currency, securities, or other negotiable papers.

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Scheduled personal property insurance covering high-value items like jewelry, electronics, and collectibles.

Home systems protection and equipment breakdown coverage for essential household appliances and systems.

07.

Optional

Home Systems Protection Equipment Breakdown

This optional endorsement provides coverage for the unexpected mechanical or electrical breakdown of major systems and appliances in your home. It's designed to fill the gap left by standard policies, which typically only cover damage from external perils like fire or wind. Included:

Sudden and accidental breakdown of home systems and appliances (e.g., furnace, central air conditioning, water heater).
Failure of electrical panels, sump pumps, and well pumps.
Breakdown of major household appliances like refrigerators, washers, and dryers.
Cost to repair or replace the damaged system, and sometimes additional living expenses if you have to move out during repairs.

Not Included:

Damage from normal wear and tear, rust, or corrosion.
Breakdown due to a lack of maintenance or neglect.
Damage that is cosmetic in nature and does not affect the function of the equipment.
Recalls or pre-existing conditions.

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08.

Optional

Vacancy Permit

A standard home insurance policy may be void if your home is vacant for an extended period, typically more than 30 consecutive days. A Vacancy Permit, which is an endorsement or separate policy, extends limited coverage during this time.

Limited coverage for specific perils, such as fire, lightning, or explosion.
Coverage for a set period, usually 3, 6, or 12 months, as agreed upon with your insurer.

Not Included:

Coverage for many common perils, such as theft, vandalism, water damage (including from freezing pipes), or glass breakage.
The policy's full, comprehensive coverage. The coverage is significantly reduced when a home is vacant.
Damage due to neglect or a lack of maintenance, such as a leaky roof or pest infestation.

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Vacancy permit insurance coverage allowing protection for a home or property that is temporarily unoccupied.

How to Save on Home Insurance in Canada

Here a few tips to help you save money on your home insurance:

Bundle Your Policies

Combine your home and car insurance with the same provider for a significant multi-policy discount on both premiums.

Improve Your Home's Security

Installing a monitored alarm system, smoke detectors, and other safety features can qualify you for discounts.

Maintain a Good Credit Score

In most provinces, a good credit score can indicate financial responsibility and help you secure a better rate.

Ways to save on home insurance in Canada using discounts, bundling policies, and home safety improvements.

Winterproof Your Home

Inspect your home’s heating & plumbing systems to ensure they are adequate before a pipe freezes and bursts.

Age of the Home

Newer homes are typically cheaper to insure than older homes, as they are seen as a lower risk by insurers.

Renovations and Upgrades

Maintain key home systems like your roof, plumbing, and electrical, and notify your insurer of major updates, as these improvements may lead to a discount.

Frequently asked questions (FAQs) about Home Insurance

Home insurance FAQs answer common questions about what a policy covers, how premiums are set, and how to file a claim. They help simplify complex terms and empower customers to make informed choices.

Is home insurance mandatory in Ontario?

While not legally required by the province, it is a contractual requirement if you have a mortgage. Lenders insist on it to protect their financial investment in your property.

What's the difference between my home's replacement cost and market value?

Replacement cost is the amount it would take to rebuild your home from scratch today. Market value is what your home would sell for on the real estate market, including the land. Your insurance is based on the replacement cost, not the market value.

What does my standard home insurance policy cover?

A basic policy covers damage to your home and personal belongings from specific perils like fire, theft, and windstorms. It also includes personal liability coverage, which protects you if you are sued for accidentally injuring someone on your property.

What does home insurance typically NOT cover?

Standard policies do not cover damage from events like overland flooding, earthquakes, or sewer backup unless you purchase optional endorsements. Damage from wear and tear, lack of maintenance, or pests is also generally not covered.

How do I file a claim if I have a loss?

To file a claim, you should first ensure everyone is safe and take steps to prevent further damage. Then, document everything with photos and videos. Next, contact your insurance company's claims department as soon as possible to report the incident and start the process.

Will my premium go up if I make a claim?

Making a claim, especially an at-fault or large claim, will often cause your premium to increase upon renewal. Filing multiple claims in a short period can also affect your rates or even your eligibility for a policy.

Why are my insurance rates so high?

Premiums are determined by factors such as your home's age and construction, its location, your claims history, and the amount of coverage you choose. Older homes, high-risk locations, and a history of claims can all contribute to higher rates.

Do I need to notify my insurer about home renovations?

Yes. You should always inform your insurer about significant renovations, as they can change your home's replacement cost and coverage needs. Failing to do so could result in a claim being denied or your home being underinsured.

Will my home insurance cover me if I work from home?

A standard policy provides very limited coverage for a home-based business. You should inform your insurer of any business activities and purchase a specific endorsement or a separate commercial policy to properly cover your business assets and liability.