The Best Home Insurance Quotes in Cambridge

What risks do homeowners face in Cambridge?

Severe weather and flooding are some of the biggest risks Cambridge homeowners are facing in 2026.

The summer floods of 2024 cost Ontario $1 billion in insured losses, according to the Insurance Bureau of Canada (IBC). Most of these floods occurred in parts of southern Ontario, which is where Cambridge is located as well.

The overall trend across the province is that home insurance premiums are increasing, and severe weather is one of the biggest reasons. According to Applied Rating Index, personal property lines in Ontario saw a 4.6% increase in premium rate change year over year in Q3 2025. Throughout 2024, the rate change fluctuated between 13% and 9%. For context, this percentage used to hover around 1% in the early 2020s.

‘Flooding plays a significant role in influencing premiums, especially in areas with higher water-related risks,’ says Rates.ca insurance expert Daniel Ivans. ‘Some data we're working on shows that in regions prone to flooding, water coverage costs make up 10% of the premiums.’

Why are Cambridge homeowners paying less than other major Ontario cities?

Places like Ottawa, Toronto, Hamilton and London all have higher estimated home insurance premiums than Cambridge in 2026. Sitting in the 7th spot in Ontario overall, Cambridge enjoys some of the lowest home insurance premiums in the province. Here are some possible reasons for that:

• Lower likelihood of flooding: Though floods are possible in Cambridge, if you look at the Grand River Conservation Authority (GRCA) floodplain map, they are not as prevalent as in other nearby municipalities, including Hamilton and London. This could be one of several factors that gives Cambridge an advantage over other areas in the province, especially southern Ontario.
• Lower population density: Population in Cambridge is 138,479, which is relatively low compared to its neighbours. Its population is also relatively low, sitting at 1,226 people per square kilometre. By contrast, Toronto has around 4,500 people living per square kilometre. The lower the population density, the lower the likelihood of crimes being committed and claims being filed in the area. Not surprisingly, Toronto has higher home insurance rates.
• Fewer claims: Fewer people living in your area means fewer people filing claims. Lower number of claims signals to insurers that your area has fewer risks associated with it.

The takeaway: In combination with weather-related damage, these factors can all add up to higher premiums. However, it’s worth noting that your FSA could play an even bigger role in determining your premium than the actual city. More on that below.

See our Home Insuramap methodology.

Choosing the right home insurance policy in Cambridge

If you own a home in Cambridge, you’re not required to have it insured. At least, not by law. That said, most lenders in Ontario won’t provide a mortgage unless your home is covered by insurance. That's why most homeowners still need a policy. It's also worth buying it even if you already own your home, since it's likely still the biggest asset in your possession.

The question is, what kind of policy do you need? And more importantly, what kind of protections actually exist for your home? We dive into all of that below, where you can find a full breakdown of what a home insurance policy can offer:

Types of home insurance in Cambridge

There are three major home insurance types, which differ mainly by the amount of coverage they offer and by price. As you might expect, more coverage means higher costs – and vice versa.

• Named perils: This is the least expensive plan homeowners can select. It will protect you against perils named in their policy, such as fire and theft. Named perils home insurance is a bare-bones package with the least coverage.
• Broad form: Protects your home's structure against all perils and protection for contents against some perils of your choice.
• Comprehensive: Your home and its contents are covered against every insurable hazard. Comprehensive insurance is sometimes called an 'all perils' policy.

Who gets covered

• Spouse and relatives: Your policy should cover your spouse and anyone related to either them or you, provided they reside in your home.
• Dependents: Home insurance should protect any dependents under the age of 21 who are students. They may be living in your primary home or temporarily away from it (e.g., college dormitory).

What gets covered

• Property and dwelling: This covers your home (the physical structure) from perils such as fire and theft. Structures not connected to your home, such as a garage or guest house, may need additional coverage.
• Contents and personal property: This coverage protects your home's contents. Everyday items such as furniture, clothing and electronics may be covered, but more expensive items like fine art and jewelry may need additional coverage. 

Standard home insurance coverage in Cambridge

Whether you opt for a named perils, broad form or comprehensive home insurance policy, it should cover the following:

Additional Living Expenses (ALE) coverage

Temporary displacement can occur due to wildfires, chemical spills or other emergencies. Additional Living Expenses (ALE) coverage covers your temporary housing costs. If damage to your home forces you to spend a week at a hotel, additional living expenses protection will cover the cost of the room and food up to a certain amount.

Here’s what ALE covers:

• Out-of-pocket expenses: If forced to temporarily move out, your insurance could cover expenses like accommodation, food, moving, laundry, transit, pet boarding and storage.
• Fair rental value: If you’re renting out a part of your home (such as a room or a basement) and your tenant is forced to move out due to a covered incident, your insurance could cover the loss of your rental income.
• Prohibited access: If your home becomes inaccessible due to an unexpected incident, such as a government-mandated evacuation order or a threat to your life, your insurance could cover you.

Liability coverage

Your liability coverage should encompass the following:

• Personal liability: If someone accidentally injures themselves on your property, the personal liability part of your insurance will pay for any legal expenses you incur. The coverage amount can range from $100,000 to $5,000,000, depending on how much you’re willing to pay in premiums.
• Voluntary medical payments: If you accidentally injure someone or someone injures themselves on your property, this will cover you for medical expenses. Your coverage can be as low as $1,000 or as high as $10,000.
• Voluntary property damage: Covers unintentional direct loss or damage to someone else's property. It also extends to children under 12 in your care if they cause damage. The coverage can be between $500 and $6,000.

Commonly covered perils

Commonly covered perils in Cambridge – whether you choose basic, broad or comprehensive coverage – will usually include these:

• Fire: No matter what causes the fire, your insurance company will cover the costs of replacing, rebuilding or repairing your property and recovering your belongings.
• Smoke: If smoke damages your property, you'll receive coverage. However, the smoke has to have come from a malfunctioning cooking or heating device, not your fireplace.
• Lightning or electrical current: Should lightning strike your property, it could damage the wiring in your walls as well as break your appliances and electronics. This will pay for repairing or replacing whatever ends up damaged. Any other electrical current could do the same (and is also usually covered).
• Explosion: Should your property get damaged or destroyed by an explosion, you will receive coverage.
• Riot: If a riot that takes place near your property causes damage to it, your insurance will pay for the necessary repairs or replacement.
• Theft and vandalism: If your home happens to get robbed, this will pay for the replacement of the stolen items. The same applies if the home gets vandalized.
• Transportation: If your personal property, such as a laptop, gets damaged while temporarily away from your home, then its repairs or replacement will be covered. This applies to fixtures or fitting that are being repaired or in seasonal storage.
• Water damage: This pays for the damage to your property and belongings caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers and similar appliances inside or outside your house. The tricky part is knowing what’s excluded. Most coverages usually exclude sewer back-up and overland flooding, so be sure to confirm what is and isn’t covered with your insurer.
• Hail and wind: Should wind or hail damage your property or belongings in any way, this will pay for them. This includes damage from flying debris as well as falling trees and branches (if caused specifically by hail or wind).
• Aircraft or vehicle impact: If an aircraft or another moving vehicle hits your property and damages or destroys it, you will get coverage. 
• Window breakage: This coverage applies only to homes that are occupied. If your home is vacant (meaning it's unoccupied for more than a month), then this coverage could be void. You'd need vacant home insurance to rectify that.
• Falling objects: This protects your property and belongings from falling objects, including space debris and space craft. There are exceptions, however, such as objects moved by landslides or snowslides. Confirm with your provider what is and isn’t covered.

Add-ons to home insurance coverage in Cambridge

You can enhance your standard home insurance in Cambridge with additional coverage – commonly known as ‘add-ons,’ ‘riders’ or ‘endorsements.’ Here’s what usually gets sold in addition to the standard coverage (varies from insurer to insurer):

• Overland water: Not all home insurance providers in Cambridge offer this, but for those that do, overland water insurance will protect you from overflowing water from lakes, rivers and melting snow. Get more tips on flood insurance here.
• Sewer back-up: In cases where the main sewer backs up or water from downspouts, septic tanks, drains, and eaves troughs cause damage, this add-on will protect you.
• Earthquake: Covers losses or damage caused by an earthquake. Cambridge is not known for its earthquakes, which is why this is more prevalent for homeowners on the West Coast of Canada, where it is more likely to occur. 
• Mass evacuation: Forest fires, chemical spills, or severe weather can create so much damage that it causes the need for a mass evacuation from your home. During this temporary displacement, you'll need shelter, food, etc., which this add-on is meant to help you with. In some cases, insurance providers will also assist with commuting costs if you are far from your workplace. However, it is best to talk to your Cambridge insurance provider about how much coverage you can get during your temporary displacement.
• Identity theft: Covers the cost of replacing important documents, such as your passport. 
• Lock replacement: Locks that need to be replaced by a locksmith after a break-in or another event are covered.
• Personal valuables: If you own expensive things like jewelry, collectibles and artwork, then you may need extra coverage for them. Do an inventory of all your possessions and assign monetary value to them. Then talk to your provider to find out if you need extra coverage.
• Home sharing: If you’re looking to rent out your property, this will provide you with the additional property and liability coverage you need to stay protected.
• Personal umbrella: If you’re worried that your standard liability coverage isn’t enough (e.g., if your lawsuit costs you more than expected), this add-on can make up the difference.

What is not covered under your Cambridge home insurance

Unfortunately, your home insurance can’t protect you from every existing danger in Cambridge. Certain perils are always excluded – usually because they are both predictable and preventable. Here’s what they are:

• Absence from the home: Damage that takes place while you’re away from the home for an extended period of time.
• Alterations: A homeowner will only be protected against damage to a property that occurs during an alteration to it if they have received written permission from the insurance provider to undertake the alteration. However, common repairs such as painting or fixing a broken railing are not subject to this exclusion.
• Bylaw enforcement: You are not likely to be covered for costs stemming from the application or enforcement of a bylaw.
• Damage from renters: Most insurance providers require specific coverage for landlords. A standard home insurance policy is unlikely to protect you if a renter damages the property.
• Mold: Proper maintenance and observation of your home can help prevent things like mold before they start or get out of hand. For instance, if you realize that the air in your home is humid enough to cause mold, you can take the necessary steps to resolve the issue. That's why home insurance does not cover mold. It's on you to deal with it.
• Pest infestations: Things that are considered general upkeep are the responsibility of the homeowner and not your insurance provider. And although pest infestations, such as mice, bedbugs, cockroaches, and termites, can sometimes come out of nowhere, taking care of them is your responsibility. That's why your Cambridge home insurance policy does not cover it. Stay on top of your home's needs and keep things as clean as possible to avoid pest problems.
• Volatile substance: If you have more than one gallon of a volatile substance on your property and a fire or explosion takes place, you may be denied coverage. This is likely to include gasoline.
• Purposeful damage: If you like, you can intentionally damage your property, but don't expect home insurance to cover it. Claims that stem from intentional damage are considered fraudulent, so don't do it.
• Intentional injuries to guests: If you intentionally hurt a guest in your own home, your liability coverage will not protect you. And no, there isn't an add-on for this, either. So, don't purposely hurt your guests. It's also not very nice.
• Existing damage: You’re unlikely to be covered for damage that began before you held the policy.