Home insurance isn't legally mandatory but is required by most mortgage lenders. It’s the only way to protect your property from unexpected damages.
You can purchase coverage from big banks in Canada as well as from dedicated insurance companies. Premiums are on the rise, but you can’t put a price on peace of mind.
Key Takeaways
- TD Bank offers the best variety of home insurance options in Canada.
- Home insurance includes liability and dwelling coverage with optional add-ons.
- The price of home insurance depends on the risk profile of the property and the policyholders.
- You can save on home insurance by shopping around and unlocking discounts.
The best home insurance companies in Canada
The best home insurance companies we've reviewed so far include:
- TD Home Insurance
- Sonnet Home Insurance
- Allstate Home Insurance
Each of these offers a variety of personalizable coverage options, friendly customer service, and a good selection of discounts.
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
You’ve probably heard of Allstate, or at least their slogan – “you’re in good hands.” They’re one of the largest property insurance companies in the USA, but are they a good choice for your Canadian home insurance needs?
Pros
- They offer some innovative money saving options
- You can get extra discounts if you qualify
- Allstate agents are company employees
Cons
- Customer reviews have not been favourable
- There have been reports of large premium increases
- Allstate home insurance doesn’t provide green coverage
Provinces
AB, ON, QC, NB, NS
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Get a disappearing deductible + Extra discount options.
Special Features
- Mobile app is convenient and highly rated
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
As you can probably guess, TD Insurance is the insurance subsidiary of TD Bank. They’re an all-purpose insurance company selling home and auto insurance, as well as life and health insurance. As one of the largest home insurance companies in Canada, owned by one of the largest banks in Canada, they’re a safe and secure choice for insuring your home.
Pros
- It’s easy to get an online quote
- There’s a discount for using the web
- You may be eligible for lower rates if you belong to a group
- Their bundle includes free advice
- There’s one combined coverage amount
Cons
- TD Insurance doesn’t offer in-person support
- Review scores are not very good
Provinces
ALL
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
10% off for online purchases + Get free advice from lawyers and contractors.
Special Features
- Free advice from lawyers and contractors available for customers with bundled plans
- Protection for family-related situations, such as cyberbullying and parents living in nursing homes
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
If you're looking for a quick and easy way to get home insurance at a decent rate, Square One will deliver. Square One launched its professional services in January of 2011 and now provides several different insurance products, including landlord insurance, tenant insurance, condo insurance, and more. They've found a way to bypass many of the complexities typically built into more traditional policies, making it easier to customize your insurance coverage.
Pros
- Offers competitive rates starting at $12 a month
- Choose either monthly or annual payments
- Customization is easy
- Guaranteed 2-hour response for emergencies
- Available in Quebec (but not through our link)
Cons
- Not available in most of Canada
- Non-refundable premium
- No in-person assistance
Provinces
ON, AB, BC, MB, SK, QC
Eligibility
- Age of majority in your province.
Why You Want It
Rates start as low as $12 per month + Coverage is fully customizable and online.
Special Features
- Coverage for as low as $12 per month
- Only offers a Comprehensive insurance policy for the best protection
- Allows customers to exclude coverage for property they don't own to reduce premiums
- Access to a Legal Advice Helpline
- An expert review of your condo corporation's insurance policy to determine your necessary limits and deductibles
- Interest-free monthly payments
- 24-hour claims service with a guaranteed 2-hour emergency response
- Available in Quebec
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
How we ranked insurance companies
To evaluate home insurance, we analyze over 10 data points to generate a trustworthy Genius Rating. We consider all aspects of a home insurance plan, including cost, extra perks, how broad the coverage is, customer satisfaction, and general availability, to assess its overall value. Then, the home insurance plan’s features are rated based on how they stack up against other available options.
Best home insurance in Canada 2025 winner: TD Home Insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
As you can probably guess, TD Insurance is the insurance subsidiary of TD Bank. They’re an all-purpose insurance company selling home and auto insurance, as well as life and health insurance. As one of the largest home insurance companies in Canada, owned by one of the largest banks in Canada, they’re a safe and secure choice for insuring your home.
Pros
- It’s easy to get an online quote
- There’s a discount for using the web
- You may be eligible for lower rates if you belong to a group
- Their bundle includes free advice
- There’s one combined coverage amount
Cons
- TD Insurance doesn’t offer in-person support
- Review scores are not very good
Provinces
ALL
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
10% off for online purchases + Get free advice from lawyers and contractors.
Special Features
- Free advice from lawyers and contractors available for customers with bundled plans
- Protection for family-related situations, such as cyberbullying and parents living in nursing homes
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
Our pick for the best home insurance in Canada for 2025 is TD Home Insurance This product is well-loved for its reliable, comprehensive coverage and customizable plans tailored to your needs. TD’s trusted customer service and easy claims process give homeowners peace of mind, knowing their property is protected.
Whether you rent or own, TD Home Insurance offers affordable options to safeguard your home.
Why we picked it:
- Free advice from lawyers and contractors in bundled plans
- Green coverage
- Home sharing coverage
- Overland water coverage
- Safe and reliable company
Sonnet Home Insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
Sonnet Insurance is an online-only insurance company that offers lower insurance rates than many of its competitors. It does this by having no physical presence, passing those savings on to its customers. This could be great if you’ve just bought a house and are primarily concerned about premiums, but if you’re looking for a more personal touch, Sonnet probably isn’t the company for you.
Pros
- Often one of the lower rates you’ll find
- Initial quotes are precise, once you go through the process
- Nice website and a very user-friendly app
- 24/7 customer service by phone
Cons
- Customer reviews are mixed, at best
- Insurance rates are reported to change unexpectedly
- Sonnet home insurance isn’t available in all provinces
- While owned by Economical, Sonnet is a very young company
Provinces
ALL
Eligibility
See Issuer for Details
Why You Want It
Become insured in only 5 minutes + Convenient 24/7 customer service.
Special Features
- Identity theft coverage included
- Sonnet Connect provides discounts, promotions, and freebies from partnering businesses
- Above and Beyond coverage
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
As an online-only company, Sonnet can offer you better rates than its competitors. With Sonnet Home Insurance, you can choose from a good range of coverage options, and it’s fast and easy to purchase a policy in all provinces. We also appreciate their fun selection of freebies and promotions from partnering businesses.
Why we picked it:
- Lower rates
- 24/7 customer service
- Identity theft coverage included
- Multi-home savings
Allstate Landlord Insurance
Personal Liability Coverage
Loss Of Rental Income Coverage
Landlord's Belongings
Landlord Legal Protection
A rental property can be a valuable investment, but there are always risks involved. Allstate Landlord Insurance – also known as Allstate Rental Insurance – will help protect you against personal liability, and your rental property against damage. Allstate Landlord Insurance includes a few basic forms of insurance, including dwelling protection and coverage for detached private structures. Further optional protections are also available.
Pros
Cons
Provinces
AB, ON, QC, NB, NS
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Get basic coverage + Add optional water damage or appliances protection.
Special Features
See Issuer for Details
Personal Liability Coverage
Loss Of Rental Income Coverage
Rented Dwelling Coverage
Detatched Structures
Sewer Backup
Overland Water
Landlord's Belongings
Earthquake
Water Damage
Appliances
Landlord Legal Protection
Allstate is a reputable, longstanding insurance company. Allstate Landlord Insurance offers a selection of home insurance coverages in 5 provinces in Canada (AB, NB, NS, ON, and QC). You can manage your policy through the app, and it’s easy to qualify for discounts and money-saving options. Premiums are higher than average.
Why we picked it:
- Excellent mobile app
- Disappearing deductible
- Long list of available discounts
- Physical storefronts for people who prefer face-to-face service
- 24/7 claims phone line
Square One's home insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
If you're looking for a quick and easy way to get home insurance at a decent rate, Square One will deliver. Square One launched its professional services in January of 2011 and now provides several different insurance products, including landlord insurance, tenant insurance, condo insurance, and more. They've found a way to bypass many of the complexities typically built into more traditional policies, making it easier to customize your insurance coverage.
Pros
- Offers competitive rates starting at $12 a month
- Choose either monthly or annual payments
- Customization is easy
- Guaranteed 2-hour response for emergencies
- Available in Quebec (but not through our link)
Cons
- Not available in most of Canada
- Non-refundable premium
- No in-person assistance
Provinces
ON, AB, BC, MB, SK, QC
Eligibility
- Age of majority in your province.
Why You Want It
Rates start as low as $12 per month + Coverage is fully customizable and online.
Special Features
- Coverage for as low as $12 per month
- Only offers a Comprehensive insurance policy for the best protection
- Allows customers to exclude coverage for property they don't own to reduce premiums
- Access to a Legal Advice Helpline
- An expert review of your condo corporation's insurance policy to determine your necessary limits and deductibles
- Interest-free monthly payments
- 24-hour claims service with a guaranteed 2-hour emergency response
- Available in Quebec
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
Square One's home insurance doesn’t offer any sweet perks like first claim forgiveness. However, its low rates might make up for any drawbacks, and you have a guaranteed 2-hour response time for emergencies and plenty of loyalty rewards. It's important to note that Square One's home insurance is only available in six provinces: AB, BC, MB, ON, QC, SK.
Why we picked it:
- Low rates
- Legal advice helpline
- 24-hour claims service
- Easy to customize
The Co-Operators Home Insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
Your home is important to you, so you want to make sure your home insurance company will be there for you when you need them. The Co-operators provides quality home insurance with consistently high satisfaction ratings. Their network of financial advisors is backed by over 5,000 employees, making them one of the leaders in Canadian property insurance.
Pros
- High satisfaction rating
- 24/7 claims service
- Innovative features
- Many ways to save on your premiums
Cons
- Potentially higher rates
- Policies don’t include additional living expenses
Provinces
ALL
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
One-of-a-kind flood coverage + High customer satisfaction ratings.
Special Features
- Discounts for eligible LEED certified homes
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
See Issuer for Details
Home Security Savings
Multi Home Savings
Newly Built Home Savings
Customers rank The Co-Operators Home Insurance very highly. This Canadian company offers a variety of insurance products, with an emphasis on green coverage and LEED-certified homes. You’ll also find unusual coverages in some of its packages, like paint spills on carpet.
Why we picked it:
- High customer satisfaction ratings
- Unique flood coverage
- Discounts for some LEED-certified homes
- Discounts for newly built homes
RBC Home Insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
RBC is one of Canada’s oldest and largest banks. If you’re an RBC customer and are purchasing a home, it’s logical to consider RBC for your insurance needs as well. As with all Canadian banks, you can’t buy home insurance from your local branch. You’ll need to speak to an insurance agent, over the phone or through an RBC Insurance Store location.
Pros
- RBC home insurance is marketed by Canada’s largest and oldest bank
- Their home repair bundle endorsement is an innovative add-on
- They have an anonymous claims advice line
- Came in 2nd place for customer satisfaction
- You’re rewarded for being claims-free
Cons
- Reviews aren’t great
- You can’t buy RBC home insurance from your local bank branch
- It’s not so simple to get the coverage you need
Provinces
ALL
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Free online quotes available + Innovative home repair bundle.
Special Features
See Issuer for Details
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
Hail Coverage
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
See Issuer for Details
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
RBC is more than a bank – it’s also a trusted provider of home insurance in Canada, through its administrator Aviva. With RBC Home Insurance, you enjoy the backing of an established institution, plus innovative features like anonymous claims advice and a home repair bundle endorsement to save you money in the long run.
Why we picked it:
- Covers additional living expenses
- Available throughout Canada
- Unique home repair bundle
- Anonymous claims line
Scotiabank Home Insurance
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Replacement Cost Guarantee
Additional Living Expenses
Most of Canada’s big banks offer insurance, including Scotiabank. On their website, Scotiabank has some information about their insurance offerings, including auto, life, health, travel, creditor, and home insurance. And by “some information,” we mean…some. There’s really not a lot of detail available on their website or when you get an online quote, so it’s really hard to know what’s available.
Pros
- Offers the basics
- Online quote is available
Cons
- Very little information available on their website
- Similar lack of information in quotes
- You have to call them (during business hours)
Provinces
ALL
Eligibility
See Issuer for Details
Why You Want It
Feel protected with 24/7 claims service + Renewable coverage.
Special Features
- Discounts for being claim free
- Discounts for being mortgage-free
- Coverage for the contents of your home during a move
Liability Insurance
Personal Valuables Coverage
Actual Replacement Cost Of Home And Personal Belongings
Full Sewer Backup
Overland Water Coverage
See Issuer for Details
Hail Coverage
See Issuer for Details
First Claim Forgiveness
Replacement Cost Guarantee
Enhanced Deductible Waiver
Green Coverage
Additional Living Expenses
Home Sharing
Home Security Savings
Multi Home Savings
Newly Built Home Savings
With standard offerings like 24/7 claims service and additional living expenses, Scotiabank Home Insurance covers what you need. However, specialty offerings like green coverage, multi-home savings, and first claim forgiveness are not available.
Why we picked it:
- Backed by a trusted national bank
- Online quotes available
- Discounts for being mortgage-free
- 24-hour phone line for claims
How much does home insurance cost in Canada?
The average Canadian homeowner pays about $1,000 per year for home insurance in 2024.
Prices may be higher or lower, depending on the region of Canada.
2024 saw some shockingly high increases for home insurance costs across the country. MyChoice, an insurance comparison site, showed an average increase of 7.66%.
Why is the cost of home insurance going up?
The cost of home insurance is going up because it’s becoming more expensive and more difficult to repair damaged homes.
In 2024, home insurance rates in Canada have risen more than 7% due to these factors:
- Material costs: The price of repair materials is increasing due to inflation.
- Labour costs: The cost of wages for repair people is higher than it was.
- Supply chain: Shortages of materials and transport difficulties contribute to higher prices for materials.
- Climate events: A higher frequency of extreme weather incidents is resulting in more claims, pushing up costs for insurers. For instance, there’s now an unprecedented amount of wildfires in Canada.
The Insurance Bureau of Canada stated that 2023 was the fourth-worst year in Canada’s history for insured losses, resulting in $3 billion in losses. Although inflation is no longer skyrocketing in Canada, the cost of materials and frequency of climate events seem to be trending in the wrong direction for homeowners.
Comparing quotes is the best way to shop for home insurance
You’d be wrong to assume that homeowners with a similar profile and coverage preference would pay the same rate at every company. In reality, rates are not uniform because each insurance company assesses risk using a unique formula.
You could save more than a thousand dollars per year by choosing the right company. That’s cutting your monthly payment in half, in some cases.
How to pick a home insurance company
Home insurance policies are risk mitigation, so it’s important to choose a company and a policy that fit your specific risks as a homeowner.
Consider these key factors:
- Variety of offerings: From overland water to hail damage, look for a company that offers a broad range of protection based on the risks you face in your area.
- Specific coverages: If you need green coverage or additional living expenses for your LEED-certified home (for instance), make sure your company offers those options.
- Customer service: Policy is what you buy, but service is what you get. Read the reviews, find a responsive team, and choose the company with the most helpful people.
- Price: Some companies charge 2x more than their competitors – but money isn’t everything. Look for a reasonable price with the possibility for loyalty discounts.
Read the fine print, too. If you need to adjust your policy or if climate conditions worsen, know what to expect from your company.
What does home insurance cover?
There are 3 basic types of coverage in a home insurance policy: dwelling, liability, and personal valuables. Together, these coverages protect your home and your bank account.
| Coverage type | What it covers |
|---|---|
| Dwelling (Insurance Of Main Building And Outbuildings) | Losses and damages to the physical structure, if caused by the types of events specified in the policy. |
| Liability Insurance | Damage to another person or their property, if caused unintentionally. |
| Personal Valuables Coverage | Damage or theft of personal contents in addition to the building itself. |
Dwelling coverage helps preserve the equity in your home, giving you support in restoring your assets if disaster strikes. Look for replacement value coverage, and always inform the insurer about renovations so they can adjust your policy.
Liability and personal valuables coverage protect your bank account. Liability protects you from losing all your assets if someone sues you because they slip in your driveway. $1 million is the recommended minimum liability limit.
Personal valuables coverage (aka contents insurance) helps pay to replace personal items that are damaged in a covered incident, rather than paying out-of-pocket. This is usually the actual cash value, not the replacement value.
Some additional coverages may be included or available for an extra charge:
| Coverage type | What it covers |
|---|---|
| Replacement Cost Coverage | Pays the actual cost to replace items as opposed to their current value or original cost. |
| Full Sewer Backup | Damage caused when sewer water backs up into homes. |
| Overland Water Coverage | Damage caused by water entering the building at ground level, such as during flooding or heavy rainfall. |
| Hail Coverage | Damage caused by hail. |
| Enhanced Deductible Waiver | Forgoes the policy deductible (the amount the homeowner must pay toward a claim) for large, catastrophic claims. |
| Green Coverage | Pays the extra cost for "green" (eco friendly) materials when doing repairs as part of a claim. |
| Additional Living Expenses | Covers expenses such as accommodation and meals if the home is not able to be occupied. |
| Coverage For Home Sharing | Insurance coverage for a home sharing situation (like Airbnb). |
Only certain causes may be covered. For example, criminal acts and bad weather are usually covered but some types of natural disasters (like wildfires or hail) may be excluded.
Only certain items may be covered. Highly valuable items may not be included in your basic policy, like expensive jewelry or fine art.
It's always important to consult the insurance booklet carefully. This explains what is and isn’t covered, including coverage amounts.
Types of home insurance policies
The three basic types of home insurance policies in Canada are comprehensive, named perils, and broad coverage.
- Comprehensive coverage: Covers all risks except certain exclusions like intentional damage and war
- Named perils coverage (aka "basic"): Protects only against risks specifically named in the policy, like fire and theft
- Broad coverage: Mix of comprehensive and named perils protection
For additional coverages in at-risk areas, you can purchase add-on policies like earthquake damage or overland flooding. These are called endorsements. For example, British Columbia and the area along the St. Lawrence River may be especially vulnerable to flooding.
You can buy a "no-frills" policy (no association with the grocery store) if your property does not meet standard insurability criteria, such as needing serious repairs.
What are home insurance endorsements?
Home insurance endorsements – also called riders or add-ons – are specific additions or exclusions to your coverage that personalize your policy. You add endorsements because you need coverage for risks that are not already covered in your base policy.
Here are a few common endorsements for home insurance in Canada:
- Overland flooding: Covers damage caused by water entering your home from heavy rain, lakes, or rivers
- Sewer backup: Covers water damage caused by overflowing sewers or clogged drains
- Earthquake: Covers earthquake damage
- Identity theft: Covers expenses associated with recovering your credit and identity
- High-value items: Special coverage for items like jewelry, art, or collectibles which would otherwise be capped under a standard policy
- Equipment breakdown: Covers electrical failures or unexpected mechanical failures for appliances and home systems like furnaces
- Home-based business: Extends your coverage and liability to any home business equipment and operations
Endorsements usually come with an additional premium, but they help close essential gaps in coverage.
Other ways to get cheap home insurance
Here are a few strategies to save on your home insurance in Canada:
| Method | Possible savings |
|---|---|
| Loyalty discount | Up to 10% |
| Claims-free discount | Varies |
| Bundling insurances | Up to 50% |
| Mature homeowners discount | Up to 15% |
| Mortgage free discount | Up to 20% |
| Annual payments | Up to 10% |
| Affinity/group/association discount | Up to 20% |
| Increased deductible | Varies |
| Improved credit score | Varies |
Any combination of the above can net you some serious discounts on your home insurance.
Keep these ideas in mind too when trying to decide how to lower your premiums:
- Improve credit: People with good credit save about 20% on their premiums.
- Safety systems: Homes with security systems and fire detection networks are safer, so they cost less to insure.
- Claims free: Pay out-of-pocket for claims cheaper than your deductible and enjoy a claims-free discount.
- Maintain home: Keep your home systems clean and up to date to earn the best rates.
- Online-only company: Opt for an online-only company with lower operating costs to unlock cheaper premiums.
- Location: Areas that aren't prone to wildfires, hurricanes, earthquakes, tornadoes, etc., are less risky and therefore receive lower rates.
Personal factors that could increase your home insurance
Beyond the company and coverage level you choose, personal factors will impact the cost of your policy.
Here are factors related to your property:
- The amount of insurance required: Includes the value or replacement cost of your home (excluding the land), the value of your personal possessions, how much liability insurance you have, your deductible, and other endorsements.
- Property use: If multiple people rent out your home, this means higher risk and higher premiums.
- Property age: Older properties and systems are more vulnerable to damage and potentially more costly to repair.
- Property size: Bigger properties cost more to insure.
- Accessory structures: ADUs and pools will cost extra to insure.
- Location: Your zip code has a certain risk profile, from local crime rates and flood risk to proximity to a fire hydrant.
Here are factors related to you as the policyholder:
- Claims history: A history of claims looks risky to companies and predicts future claims, so you’ll pay more for coverage.
- Coverage history: Continuous insurance is highly desirable. Gaps in coverage may trigger higher rates.
- Marital status: Data shows that married couples are less risky so they usually pay less for coverage.
Ultimately, your premium is the sum of all these factors. Considered altogether, these factors represent your specific risk level or the chance you'll file a claim.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
FAQ
What is home insurance?
Home insurance provides financial protection for your home in return for a fee in advance (the "premium"). Since a home is typically worth thousands of dollars, spending a few hundred a year on insurance is well worth it.
How can I get cheap home insurance?
The best way to get cheap home insurance is to shop around and compare your options. You can look for loyalty discounts, consider bundling your insurance types (car, pet, etc.), look into installing a home security system, etc.
What is typically covered by home insurance?
Home insurance policies help to pay for damage to your home, outbuildings, and possessions caused by things like fire, weather, accidents or criminal activity (such as theft or vandalism). They also typically include liability insurance.
How do I make a home insurance claim?
Most companies have a 24/7 hotline available and some have an instant chat service. You can get the phone number or other contact information on your insurance provider's website. It's also mentioned in your insurance policy document.
Do home insurance quotes affect your credit score?
While home insurance companies sometimes request a credit check during the application process, it won't affect your credit score. This is a "soft pull" inquiry so it doesn’t go on your credit report or affect your score.
Do I need to get home insurance in Canada?
Home insurance in Canada isn't legally required if you own your home. However, mortgage lenders usually require borrowers to get home insurance. On top of that, your home is a huge investment so insurance is highly recommended.
What doesn’t home insurance cover?
Home insurance covers many things, but not intentional damage by the homeowner. It also doesn’t pay for normal maintenance or wear-and-tear. Exclusions depend on the type of insurance you have, so make sure to read your policy carefully.
How do home insurance deductibles work?
The deductible is the amount the policyholder pays out of pocket before the insurance company pays anything. You choose a deductible amount when you buy your policy. Typical amounts in Canada range from $500 to $3,000.
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