Frequently asked questions about home insurance in Canada

There are many things that determine your premiums, and if this is the first time you’re looking for home insurance, you may have questions. In this section, we’ll answer some of the most common questions people have about purchasing home owner insurance in Canada.

Do all homeowners need to get home insurance?

It is not a legal requirement to have home insurance in Canada. However, it is a requirement for many mortgage brokers. If you’ve already paid off your mortgage, or are purchasing in cash, you don’t need to get home insurance, although it’s recommended that you do. But if you’re looking to mortgage your home, you’ll need a home insurance policy.

If it’s not a legal requirement, do I really need to get home insurance?

Consider it this way. Your home is likely a large, if not the largest, portion of your net worth. Home insurance gives you protection against that asset in case of emergencies like fire, natural disasters, theft. If you don’t own home insurance, those costs will be 100% up to you to pay out of pocket.

What is not covered in a general home insurance plan?

Damages due to negligence is not covered unless you add additional coverage to your insurance plan. Things that fall under this category are mold, pests, sewer backups, etc. Make sure you speak with your insurance provider about what is and isn’t covered in your plan, and how much it costs to add additional coverage.

What if I change my mind? Can I cancel my home insurance policy?

Yes, you’re able to cancel at any time. If you’re looking to transfer to another provider, then make sure that you’ve already selected a new one, and to inform your current provider about the cancellation and their process for ending/moving an account.

How does a claim work?

If anything happens to your home, such as damages or theft, then call your insurance provider and ask what your covered for. If the situation is such that you cannot stay in your home, then the insurance provider may even cover hotel and food expenses, while their contractor repairs the property.