Home Insurance

Home insurance provides vital financial protection for your property and belongings. While Ontario law does not mandate home insurance, most mortgage lenders require proof of a valid policy before they release funds. This ensures their investment remains protected against major risks like fire, windstorms, or significant structural damage.

Standard policies typically cover the physical dwelling, detached structures like sheds, and your personal possessions. They also include personal liability coverage. This protects you if someone sustains an injury on your property or if you accidentally damage someone else’s property anywhere in the world. Most policies also provide additional living expenses to cover hotel and food costs if a covered loss makes your home uninhabitable during repairs.

The insurance market reflects rising construction costs and more frequent severe weather events. Insurers now focus heavily on rebuild value rather than market price. Because the cost of materials and labour has risen sharply, you must ensure your coverage limits match current replacement costs. Many providers now require specific endorsements for risks like overland flooding, sewer backup, or high-value items like jewellery.

When you sell a home, you must disclose past insurance claims if they relate to material latent defects, such as recurring basement flooding. Buyers often ask for a "Claims History Report" to verify the property's insurability. If a home has a history of multiple water damage claims, a new owner may face higher premiums or restricted coverage. Maintaining your home—especially the roof and plumbing—and installing preventative tools like backwater valves can help you secure better rates. Always review your policy annually to confirm your coverage stays ahead of inflation and local environmental risks.