Home Insurance in Canada: What You Need to Know in 2025
Published on June 17, 2025 | By WealthFusions Insurance Team
Owning a home is a major milestone—and a major responsibility. Whether you’re a first-time buyer or a long-time homeowner, having the right home insurance in place is essential to protecting your investment. This guide will walk you through home insurance basics, coverage options, pricing data, and the top providers in Canada. Let’s ensure your biggest asset is fully protected from the unexpected—fire, theft, weather, and more.
1. What is Home Insurance?
Home insurance is a policy that protects your property and belongings against risks like fire, theft, water damage, and personal liability. It typically covers:
- Dwelling: The structure of your house.
- Contents: Personal belongings inside the home.
- Liability: Protection if someone is injured on your property.
- Additional living expenses: Hotel/living costs if you’re forced to temporarily vacate due to damage.
2. Types of Home Insurance Policies in Canada
There are three main types of homeowner policies:
| Policy Type | Description | Best For |
|---|---|---|
| Basic (Named Perils) | Only covers specific risks listed in the policy (e.g., fire, vandalism). | Budget-conscious homeowners |
| Broad | All-risk coverage on the home, named perils for contents. | Mid-range protection seekers |
| Comprehensive (All Risk) | Protects both structure and contents from all risks, except exclusions. | High-value homes, full protection |
3. How Much Does Home Insurance Cost?
Home insurance costs vary by province, home value, age, and location. In 2025, the average annual premium in Canada is:
| Province | Average Annual Premium |
|---|---|
| Ontario | $1,300 |
| British Columbia | $1,200 |
| Alberta | $1,600 |
| Quebec | $1,000 |
| Nova Scotia | $1,150 |
Tip: Installing a monitored alarm system can reduce premiums by up to 15%.
4. What’s Not Covered by Standard Policies?
Typical exclusions include:
- Flooding from overland water (requires add-on coverage)
- Earthquakes (especially in BC and Quebec)
- Mould or gradual damage
- Neglect or lack of maintenance
Always read the fine print. Consider endorsements or riders for valuables like jewelry, electronics, or collectibles.
5. Top Home Insurance Providers in Canada (2025)
Here are the top-rated home insurers based on coverage options, customer service, and claim satisfaction:
- Intact Insurance: Widest coverage, includes identity theft protection.
- Aviva: Great bundle discounts with auto insurance.
- Square One: Fully customizable policies; ideal for condos, renters.
- The Co-operators: Strong presence in rural areas; offers farm insurance too.
- TD Insurance: Competitive rates for homeowners under 35.
6. How to Choose the Right Policy
Consider these when comparing plans:
- Replacement cost: Ensure the payout covers full rebuild value, not just market value.
- Deductible: Higher deductible = lower premiums (e.g., $1,000 vs. $500 saves ~10%).
- Claim support: Look for 24/7 claims processing and digital tools (photo uploads, app tracking).
- Bundling: Save 10–25% by bundling home and auto insurance.
Example: A Toronto homeowner saved $300 annually by bundling with their spouse’s auto plan at Aviva.
Conclusion & Next Steps
Home insurance is more than a legal or mortgage requirement—it’s your safety net against major financial setbacks. Get at least 3 quotes, understand your needs, and choose a plan that balances coverage with affordability.
Need help choosing the right insurance? Contact our licensed insurance advisors for a personalized quote and expert advice.
Frequently Asked Questions
- 1. Is home insurance mandatory in Canada?
- It’s not legally required but is mandatory for most mortgage lenders.
- 2. What’s the difference between market value and replacement cost?
- Market value includes land; replacement cost covers rebuilding the home structure only.
- 3. Does insurance cover home-based businesses?
- Standard policies don’t. Add a commercial rider or separate policy for business coverage.
- 4. What is overland flood insurance?
- It protects against water entering from lakes, rivers, or heavy rainfall—common in spring.
- 5. How often should I update my policy?
- Annually or after major renovations, purchases, or lifestyle changes.
- 6. Will my premium increase after a claim?
- Usually, yes. One claim may increase premiums by 10–20% at renewal.
- 7. Can tenants get insurance too?
- Yes, renter’s insurance covers contents and liability, starting from $15/month.
- 8. Do I need insurance during home renovations?
- Yes, inform your provider about renovations to ensure continued protection.